A report from WPI Economics, commissioned by leading employee benefits provider Unum UK, has found that unhappy employees take almost two working weeks’ more sickness absence on average per year compared to their happy counterparts, costing the UK economy £11 billion per year through lost productivity.

The survey of more than 4,000 employees across the UK revealed that almost half (48 per cent) said they do not have good mental wellbeing and that this is having an impact on their productivity and wider health and happiness.

Key findings suggest:

  • Just 13 per cent of unhappy staff think they are very productive at work — three times lower than their happy peers.
  • The average unhappy, unproductive worker loses nine hours of productive time per week — more than a typical day’s work.
  • 80 per cent of workers said that they are more productive when they are healthy and happy.

The report modelled the scenario that if the number of people unhappy at work reduced by half, this could lead to a reduction in lost output from sickness absence and presenteeism worth around £6.4 billion a year and an increase from improved productivity of around £7.3 billion a year.

“Our research has found that workplace health and happiness are closely linked to productivity,” said Mark Till, CEO of Unum UK. “Well over half (58 per cent) of employees — equivalent to more than 16 million people — believe that improvements in the health and wellbeing services their employer provides would lead to less time off and/or increase their productivity.

“Of course, there’s no one-size-fits-all solution to health and wellbeing benefits. Employers’ ability to offer such benefits depends on the size of their workforce, cost and, crucially, the needs of the business and its workers. However, this research presents clear evidence that workplace health and happiness can reduce sickness absence and presenteeism, as well as boost productivity. Whatever support companies can offer, expanding health and wellbeing services would help more employees and give the working world a chance to thrive, all whilst boosting British businesses’ bottom lines.”

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