The cost of health

Every week, it seems like there is fresh research about the declining health of British citizens. In February the worsening health among under-fives in Britain, flagged by Academy for Medical Sciences research, shocked the UK. If unaddressed, this will limit their future and damage UK future economic prosperity. But business leaders have a more immediate problem for now – the declining health of the current UK workforce.

If ever there was a case for improving health in Britain, now is the time. Nearly two million workers in Britain reported suffering from work-related ill health in 2022/23, according to The Health and Safety Executive (HSE). Around half of cases were attributed to stress, depression or anxiety.

Before the Covid-19 pandemic, the rate of self-reported work-related ill health had been broadly flat, but the rate is now on a continuous upward trajectory. Chronic conditions are challenging for employees and can affect staff confidence and capacity to work productively.

Lesley Cooper, the founder and CEO of WorkingWell, says: “Employee ill health attracts multiple direct and indirect costs. The direct ones are easier to spot through sickness absence, private medical insurance bills and even professional liability claims. But the indirect ones are more multiple and harder to identify and quantify. The sector faces its own seasonal challenges in terms of volatile demands and pressures, mainly driven by immovable
return deadlines.”

However, accountancy leaders are aware of the problem and are taking it seriously. Many firms are investing in resources and support systems for mental health, such as employee assistance programmes (EAPs) and counselling services, to address the growing prevalence of stress, anxiety and burnout in the workplace.

Accountancy firms, like other sectors, are working hard to shift the cultural mindset — particularly in regard to mental health — by using tools, digital and otherwise, to offer staff a space to talk to specialists.

Vicki Cockman, head of client delivery at mental health trainer MHFA England, says: “External factors to our careers can affect our happiness and health in the workplace. How we deal with them will be different from person to person and therefore having a workplace culture where people are able to talk about their mental health and what supports them to stay well, in a supportive environment is vital.”

A culture shift

Creating an open culture where employees feel safe to talk is paramount, but safe spaces and supportive managers can also help those struggling with their health rather than feel ostracised or alone. Many organisations now have wellbeing strategies, but these should be targeted rather than scattergun.

Traditional metrics such as absenteeism rates and healthcare claims data can provide valuable insights, but experts warn they only tell part of the story. Accountancy leaders also need to consider key business metrics, such as productivity, profitability, and employee retention. With this data to hand employers can better assess how employee health impacts their organisation and help them to think differently.

Data first

Evidence-based research and case studies highlighting the positive outcomes of wellness programmes, such as increased employee engagement, improved staff retention, and enhanced reputation as an employer, can help gain support from senior leadership and stakeholders.

According to the US Society for Human Resource Management, the average cost to replace an employee amounts to six to nine months of their salary. Researchers from Lancaster University and the University of London also found that around five per cent of voluntary staff turnover can be directly attributed to concerns over mental health.

Lesley Cooper says that while there is currently no shortage of employee wellbeing interventions used by employers, “very few of them are provided as targeted interventions to meet known health concerns”.

“There are many interconnecting variables in employee wellbeing, most of which are measurable and, through open conversation with the people affected, eminently modifiable. This not only offers a measure of current wellbeing but also provides an invaluable road map for where to invest in targeted support and learning resources,” Cooper adds.

Clearly, ill health in the workplace is costing billions annually and appears to be getting worse not better. It’s time to reframe the picture of UK ill health and for employers to begin viewing it as an investment rather than a cost. To do so requires evidence-based data.

Cooper says leaders must begin to reconsider the relationship between employee health, individual performance and business reliability and sustainability.

Accountants are well-positioned to gather and analyse data so maybe it’s time for firms to begin to look inwards and apply these financial and analytical skills to their teams’ health and thereby future proof workforces and their businesses.

“We continue to see a lot of ‘wellness washing’ in business,” Sarah Baldry, VP of people at AI chatbot mental health provider Wysa, says. “The most successful businesses will be those who integrate a year round, always-available employee assistance programme that is rooted in evidence, support their employees to deal with challenges, and (perhaps most crucially) address working practices and the psycho-social impacts of work that can cause poor health.

“We need to move to a place where prevention and treatment work hand in hand with evidence-based programmes that are proven to make a difference.”