By Jamie Burdess, Principal Consultant
For many employers, absence management has quietly become one of the hardest workforce challenges to control.
Employee absence is no longer just an HR issue. It is an unpredictable cost that affects productivity, morale and profitability, and one that many organisations still struggle to measure, budget for or actively reduce.
As absence rates rise across multiple sectors, employers are increasingly asking the same questions: how do we manage absence in the workplace more effectively, and how do we reduce absence before it becomes long-term and costly?
In this article, we explore the challenge of employee absence and offer suggestions to help employers manage it proactively.
Absence management is a measurable cost that many employers still struggle to control
The scale of workplace absence in the UK is significant. The government’s 2025 Keep Britain Working review estimates that ill-health related inactivity is costing the UK economy £212 billion a year, with employers alone facing tens of billions in lost output, sick pay, temporary cover and recruitment costs.
Despite this, research from group risk industry body GRiD suggests that nearly a third of employers still do not measure the impact of sickness absence on their organisation.
Direct costs such as sick pay are only part of the picture. The wider impact includes:
- Reduced productivity and service delivery
- Increased pressure on remaining staff
- Higher levels of presenteeism
- Delayed projects and operational disruption
Without robust absence management data, these costs remain hidden, making absence feel like an unavoidable part of running a business rather than a risk that can be actively managed.
Read more: Smart ways employers can balance rising healthcare costs and employee expectations
Reactive absence management systems rarely reduce absence in the workplace
Many employers already invest in employee wellbeing initiatives such as employee assistance programmes (EAPs), occupational health referrals or virtual GP access. However, these are often delivered through multiple providers, with different access points and limited oversight.
As a result, employee absence management is typically reactive. Support is introduced only once an employee is already off sick, or when absence becomes prolonged. By that stage, the opportunity to prevent the issue or support an early return has often passed.
This fragmentation also makes it difficult for employers to answer practical questions such as:
- How engaged are employees with existing wellbeing services?
- Are interventions reducing absence or simply responding to it?
- What is the return on investment?
For organisations asking how to reduce absence in the workplace, the answer rarely lies in adding another standalone benefit. It lies in creating a clear, joined-up absence management approach that combines prevention, oversight and financial certainty.
Managing absence in the workplace is both a financial and people strategy
Absence is often viewed purely as either a wellbeing issue or as a cost issue. In reality, it is both.
Strong absence management improves:
- Cost control and predictability
- Employee engagement and trust
- Productivity and workforce resilience
If you’re asking how to manage absence in your workplace more effectively, the answer is not to react later. It is to intervene earlier, with better data, clearer pathways and the right financial protection in place.
Read more: How employers can support early cancer detection
Taking control of employee absence
Key takeaways
- Employee absence management is a cost issue as well as a wellbeing issue, with many employers underestimating its financial and operational impact.
- Reactive absence management systems rarely reduce absence, as support is often introduced too late to prevent long-term issues.
- A proactive approach combining early intervention, return-to-work support and financial protection can help employers reduce costs and improve outcomes.
- Better data and oversight are essential for understanding the true cost of absence and targeting support more effectively.
Employee absence will always exist. What has changed is its scale, its cost and its impact on already stretched organisations.
A new way to manage absence in the workplace
Our aim is to tackle employee absence head-on by bringing together three elements employers rarely get in one solution.
Financial protection through absence insurance
Absence insurance allows you to protect against the cost of absence, including sick pay, overtime and temporary cover. This turns an unpredictable expense into a budgetable one.
This is particularly valuable for organisations with enhanced sick pay policies or roles where absence causes immediate operational disruption.
Proactive absence management and early intervention
Alongside insurance, the solution includes structured absence management system support, enabling you to record absence early and trigger timely intervention. Employees gain access to integrated employee wellbeing services such as occupational health, physiotherapy, counselling, virtual GP access and nurse-led support.
These are designed to prevent short-term absence becoming long-term.
Embedded return to work support
Effective return to work support is critical. The Keep Britain Working review highlights that employees who have been out of work for less than a year are almost five times more likely to return than those absent for longer.
By providing clear pathways for phased returns, clinical input and ongoing case management, the partnership helps employees return to work sooner and stay in work productively.
Moving forward with confidence
We can help you move beyond reactive workplace absence policies towards a more proactive, integrated model that reduces cost, improves outcomes and supports people back to work faster.
If you’re ready to take a more strategic approach to employee absence management, we offer a practical way forward, protecting budgets, improving engagement and delivering better return to work outcomes.
