Employers hold the key to unlocking improvements in worker’s health

High rates of inactivity and increased absence from the workplace can be tackled by greater collaboration and investment by employers and governments, according to report published today. Around one in four people working-age people in Scotland are inactive, a figure that has been rising, largely due to an increase in long-term sickness. Absence from work due to poor health, in particular mental health, is also a challenge with an estimated cost to employers of £51bn a year.

The Healthy Working People: New Solutions report by Prosper, a leading Scottish economic alliance, explores the economic cost of ill-health to both business and the public purse and sets out key opportunities for action.

The report sets out actions for employers around flexible working, investing in manager training to better support employees, and inclusive recruitment practices. For governments at Holyrood and Westminster, which are making reducing economic inactivity an urgent priority, there are also opportunities for action on investment to improve access to mental health support. Solutions to increase awareness of existing occupational health support services and bring forward greater incentives for employers to invest in occupational health are also offered to the UK Government.

Clare Reid, Director of Policy & Public Affairs, Prosper, said “We know that many employers are already working hard to support the health of their workforce and to bring more people into work. Persistently high rates of inactivity along with poor in-work health and wellbeing mean that greater action is required to shift the dial. Employers are vital partners in driving the changes we want to see, and need to be supported and incentivised if we are to achieve the sustained economic growth we desire.”

Supporting people who are out of work into fair work is likely the Labour Market challenge of the 2020s, and employers big and small are key to delivering the shift in trajectory needed for improved health and for improved economic prosperity here in Scotland and more broadly across the UK.

The report is supported by the Association of British Insurers (ABI), Johnson & Johnson, and the Scottish Government. Guidance was given from the Institute of Directors (IoD) Scotland and the Institute of Occupational Medicine (IOM).

Deputy First Minister Kate Forbes, said: “Since 2020, we have provided more than £1.1 million to help employers introduce flexible working practices. This has included improved access to flexible shift patterns, remote working and training opportunities for employees across Scotland.

“Experience shows that fair work can improve recruitment and retention of staff while ensuring more people are able to stay and progress in work. The Scottish Government continues to work with businesses, charities and other organisations to improve awareness of the wide range of physical mental health advice and support that is available to support the wellbeing of employees.”

Rebecca Ward, ABI Head of Health and Protection Policy, added: “Supporting a healthy workforce isn’t only in the best interest of employees, it can also help to boost productivity and economic growth. We warmly welcome Prosper’s report, which echoes many of our own recommendations to employers and government, including recognising the vital role flexible working can play in improving health and wellbeing at work, and the need to strengthen the Statutory Sick Pay system. By offering access to preventative services and early intervention, health and protection insurance can play a key part of a benefits package for employees, helping maintain a healthy workforce, to the advantage of businesses, the economy, and individuals themselves.”

Catherine McWilliam, Nations Director at IoD Scotland highlighted: “Skills shortages, recruitment challenges and retaining talent are all key concerns for business leaders, and it’s clear the incoming workforce is less focused on salary, and more interested in workplace culture. By ensuring their businesses are inclusive, diverse and supportive of employee wellbeing, leaders will likely see improved productivity from current staff, and become more attractive to incoming talent.”