The true impact of long-term sick leave on your business

In 2023, the Irish Prison Service confirmed that the cost of sick leave in 2023 had reached an eye-watering €11.15 million, as staff worked in what it called an “extremely challenging environment.”

Prison officers took over 52,000 sick days last year, with the average across the entire service being 15.82 per person. To illustrate just how bad this really is, in 2022, Ireland reported an average of 2.8 sick days per employee!

While this may prompt some of you into thinking “no big deal”, the average number of sick days in stressful roles and industries can get much higher.

The cost of sick-leave can be devastating for your business, and these figures highlight that wellbeing is not just a personal issue, but a business one too.

How much is long-term sick leave costing Irish businesses?

Since January 2024, Irish employers are mandated to provide up to 5 days of sick leave per employee, at 70% of the employee’s daily wage, capped at €110 per day. This is set to increase to 7 days in 2025, and 10 days in 2026, which in an ironic twist, is set to cause headaches for business owners…

For reference, the cost of sick leave for an employee in Ireland is on average €1,500 per year, when considering both the direct costs of sick pay, and the indirect costs of lost productivity and temporary staffing.

But in high-stress sectors like healthcare and public safety, the cost of long-term sick leave can be significantly higher. At Castlerea Prison in Co Roscommon in 2023, staff took a combined 5,521 days off in total, costing the prison a staggering €1.2 million!

The cost to small businesses, if left unchecked, can easily spiral out of control. Yet it’s not all doom and gloom—the Shelton Abbey open prison in Wicklow had an average number of sick days of 6.76, costing it just over €80,000. So what’s the secret sauce behind low sick days, and how can business owners get that recipe to minimise sick days in their own organisation?

What's causing sick leave in businesses?

Sick leave in Ireland is not necessarily being caused by one single thing. Among the physical reasons, common illnesses such as cold and flu, and musculoskeletal issues like back pain are frequent culprits of short-term absences.

But the true driver behind long-term sickness in Ireland is a growing trend of poor mental health and stress-related illness. Peninsula found that the most common conditions reported in 2021 were anxiety, stress, and depression.

In fact, over the pond in the UK, the costs of poor mental health were estimated to be £153 billion in 2022. That’s double the entire NHS’ yearly budget, and is comparable, economically, to having a COVID-19 pandemic every single year!

While common physical illnesses are largely outside of a business owners’ control, there’s plenty they can do to support mental health in their organisation. Not only will this help support their employees, but it can also zap costs and supercharge productivity.

How can I support employees mental health in my business?

The stigma surrounding mental health often prevents employees from seeking help early, exacerbating the problem and leading to longer recovery times. Establishing clear mental health policies is essential; these should outline available resources, the process for requesting leave, and the company’s commitment to supporting mental health.

Providing Employee Assistance Programmes (EAPs) can provide confidential support services, like counselling and mental health resources to help employees manage stress before it gets worse.

Trying to facilitate flexible working, if possible in your business, is something that can help employees better balance work and life commitments, prioritising their mental health. If you’re unsure about managing this effectively, consider using an intuitive clocking-in app like Blip to handle all the admin bits for you.

Promoting a supportive work environment where open communication about mental health is encouraged is important. It’s not enough to just talk the talk; you have to walk the wellbeing walk and really ingrain it into your company culture.

By implementing some of these strategies, you can create a workplace that prioritises mental health, reducing burnout, long-term sick leave, and boosting productivity.

Support your employees with BrightHR's EAP!

Prioritising mental health in your business can be a great way to boost retention, lower turnover, and increase productivity.

BrightHR’s Employee Assistance Programme gives your staff 24/7 fast-tracked wellbeing support with personalised content, NHS-approved programmes, and much more.

Want to boost wellbeing and reduce burnout in your business? Book a free demo with one of our experts now or call us on 1900 279 841 for more info.