Lancaster University Management School - 54 Degrees Issue 22

of the challenges and opportunities in creating healthier workplaces. Our analysis revealed that nearly one in ten employees who experienced a health issue between 2017 and 2019 had exited the workforce by 2021. Alarmingly, almost half of these exits occurred within the first year of illness, highlighting the importance of timely interventions. Certain groups are disproportionately at risk. Unsurprisingly, workers with three or more health conditions are 5.6 times more likely to leave the workforce than those with no health conditions. Mental health is a particularly acute concern. Employees with poor mental health are nearly twice as likely to leave work after falling ill compared to their peers with good mental health. With mental health now a leading reason for workforce exits, the status quo is unsustainable. MOVING BEYOND AWARENESS Employers are aware of the problem, but awareness alone is not enough. Our research reveals a significant gap between recognising the issue and taking action. While 64% of senior leaders acknowledge that poor employee health affects organisational performance, fewer than half offer flexible working arrangements – a proven strategy for retaining employees with health conditions. This gap is troubling, especially when flexibility and autonomy can make the difference between retaining talent and losing it. Workers with no flexibility are four times more likely to leave their jobs. Similarly, those with little control over their tasks, hours, or workload are 3.7 times more likely to exit. These are actionable insights, yet many employers are trapped in a reactive mode, addressing problems only when they arise instead of preventing them. A HEALTHIER WORKFORCE It is time for a national reset on workforce health. This means moving from downstream, reactive measures to upstream, preventative ones. The Government must lead the way with bold reforms: Improve job quality: Enact the longawaited Employment Rights Bill to ensure secure, flexible working from day one. Enhance paid leave entitlements to reflect the realities of longer working lives, and update the Health and Safety at Work Act to account for modern challenges like mental health and chronic illness. Integrate occupational health with public health: Establish a UK-wide network of workforce health hubs. These hubs should provide accessible support to small and medium-sized enterprises (SMEs), which often lack the resources to tackle workforce health issues independently. Enhance Statutory Sick Pay (SSP): Increase SSP to provide a meaningful safety net for employees. This includes abolishing the income threshold and waiting period, as proposed in the Employment Rights Bill, and raising SSP to 60% of wages or the Real Living Wage, prorated by hours worked, whichever is higher. Employers must also step up. It is no longer acceptable to view workforce health as someone else’s problem or as a burden too big to bear. Healthier workplaces are an investment, not an expense. By adopting flexible working policies, redesigning jobs for greater autonomy, and prioritising mental health, businesses can protect their bottom line and contribute to a healthier society. The alternative is stark. Continued economic inactivity and growing inequality risk undermining the Government’s ambitious vision to grow the labour market and improve working conditions. Without action, those people who need help the most will be left further behind, exacerbating existing social and economic divides. FIFTY FOUR DEGREES | 45 Asli Atay is a Senior Policy Advisor at the Work Foundation. The report Stemming the tide: Healthier jobs to tackle economic inactivity, is authored by Asli Atay, Rebecca Florisson, George D. Williams, and Alice Martin, of the Work Foundation; and Professor Stavroula Leka, of Lancaster University Management School. a.atay@lancaster.ac.uk

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