Employee Absence on the Rise – It’s Time to Prioritise Wellbeing

Keeping your workplace happy, healthy, and engaged has always been a challenge, but over the past few years, it’s become even harder. Stress-related absence is on the rise across UK workplaces, and for many employers, it’s now one of the biggest HR challenges to manage.

The latest data from the CIPD’s Health and Wellbeing at Work Report shows that stress remains the top cause of long-term absence, while mental health-related sickness has sharply increased.

For employers, that means more disruption, more lost productivity, and greater risk of burnout across teams that are already stretched thin.

At Park City, we work closely with businesses across all sectors, and we’re seeing the same pattern everywhere.

The message is clear: supporting employee wellbeing is no longer a “nice to have”; it’s a core part of your HR and compliance strategy. When businesses take wellbeing seriously, absence levels fall, engagement improves, and teams perform more effectively.

So, why is this happening, and what can employers do about it?

The Link Between Absence and Mental Health

In many businesses, absence figures tell a much bigger story than they first appear to. Short-term absences are often recorded as “illness,” “fatigue,” or “headache,” but underneath those reasons sits a more complex cause: mental health.

Work-related stress, burnout, anxiety, and depression are among the most common issues driving employees to take time off.

According to the HSE’s 2024 statistics, over 875,000 workers experienced work-related stress, depression, or anxiety last year, accounting for more than half of all working days lost to ill health.

For HR professionals and business leaders, this isn’t just a wellbeing concern, it’s a business risk. High absence levels affect productivity, increase pressure on other team members, and can lead to a cycle of disengagement.

Over time, it can damage culture and drive up staff turnover.

As HR specialists, we always remind our clients that absence data is a valuable diagnostic tool. Look beyond the numbers. If stress-related absence is increasing, it’s often an early warning sign that your team’s resilience is under strain, and action is needed before it escalates further.

The Hidden Cost of Ignoring Wellbeing

When wellbeing is neglected, the impact ripples across every part of a business. Employees who feel unsupported or under excessive stress are more likely to disengage, make errors, and eventually leave.

Replacing those employees costs time, money, and morale, especially in a tight labour market.

There’s also a compliance element that’s often overlooked. Under the Health and Safety at Work Act, employers have a duty to protect employees’ physical and mental health. Failure to address workplace stress or provide reasonable support could expose your business to legal risk.

In addition, tribunals increasingly consider mental health-related claims when assessing constructive dismissal or discrimination cases.

Reputationally, the cost is even greater. In today’s market, where candidates prioritise employers who value wellbeing, a poor reputation for employee care can deter talent and harm your employer brand.

We’ve supported many businesses that have transformed their culture simply by treating wellbeing as part of their compliance framework. Once HR and Health & Safety teams work hand in hand, monitoring absence data, addressing risks, and communicating clearly, the results are often remarkable.

How Employers Can Take Action

Addressing rising absence and stress doesn’t mean overhauling your business overnight. Often, it starts with small, consistent steps that make a lasting difference.

1. Develop a Clear Absence Management Policy

Your absence policy should go beyond recording sickness. It should set out how you support employees before, during, and after an absence, including return-to-work meetings, adjustments, and open discussions around stress and workload. A clear, consistent process ensures fairness and helps identify underlying patterns early.

2. Encourage Early Intervention

The earlier you identify signs of stress, the easier it is to prevent escalation. Train line managers to have open, supportive conversations and to spot indicators of burnout, such as withdrawal, irritability, or declining performance. Employees are far more likely to seek help when they know their employer will listen without judgment.

3. Train Managers to Recognise and Respond

Managers play a crucial role in supporting wellbeing. Equip them with the skills to manage difficult conversations, understand their legal obligations, and know when to involve HR or occupational health. At Park City, we regularly deliver tailored management training on topics like mental health awareness, handling absence, and managing performance compassionately.

These aren’t just soft skills, they’re essential leadership tools.

Building a Culture That Supports Wellbeing

Policies and procedures are important, but lasting change happens when wellbeing becomes part of your company culture. That starts at the top.

When senior leaders talk openly about mental health, promote balance, and demonstrate care, it sets a powerful example. Employees notice. A culture of trust and openness reduces stigma and makes it easier for people to ask for help before problems grow.

Implement Practical Wellbeing Initiatives

• Initiatives don’t need to be expensive or complex. Simple, consistent steps like:
• Flexible working arrangements where possible
• Regular check-ins and team meetings focused on workload and wellbeing
• Access to confidential support, such as an Employee Assistance Programme (EAP)
• Encouraging employees to use their annual leave fully

These small actions reinforce a message that wellbeing matters every day — not just during awareness weeks.

Embed Wellbeing into Your HR Strategy

At Park City, we encourage every client to view wellbeing as an investment in compliance and performance. Integrate it into your HR services, strategy, measure outcomes, and review progress. Align your wellbeing goals with key HR metrics such as absence rates, turnover, and engagement scores.

When wellbeing becomes part of how you do business, not an afterthought, you’ll see genuine, measurable improvements, in attendance, morale, and retention.

Employee wellbeing isn’t a passing trend; it’s a business imperative. In 2025 and beyond, successful organisations will be those that recognise the connection between wellbeing, engagement, and compliance.

At Park City Consulting, our HR specialists help businesses manage absence effectively, support mental health at work, and create cultures where people can thrive. Whether you need to update your absence policy, train your managers, or develop a wellbeing strategy, our team can guide you every step of the way.

Want support managing absence and improving wellbeing?

Speak to Park City’s HR team for practical, compliant solutions that protect your business and your people.

📞 01206 752100
🌐 parkcity.co.uk