Illness is a part of life, and businesses need to account for the fact that their employees will take sick days from time to time.

However, if employees have a serious illness or injury and require repeated time off work, often for extended periods, this could have a significant impact on them and the company.

According to the BBC, a Guernsey politician recently raised concerns about the rise in long-term sickness in the civil service. Figures show that an average of 67,000 sick days were taken in 2025, compared to 60,000 two years earlier.

In December of that year, 117 staff members were off work due to long-term sickness.

In addition, a 2023 survey highlighted that in the islands, 9 out of 10 employers are worried about workplace sickness.

These trends are reflected more widely in the public and private sectors.

The most recent figures from the Office for National Statistics show that minor illnesses accounted for 30% of absences in 2024. But long-term conditions such as musculoskeletal ailments, mental health issues, and respiratory problems also featured high on the list.

As such, employers need to recognise the cost that serious illness and injury have for their staff and the business, so they can provide support where necessary.

The onset of a health condition causes a significant drop in annual earnings

Recent data about the cost of serious illness is lacking, but in 2023, IPPR examined how a serious illness affected annual earnings over the past seven years.

The results showed that, since 2020, people with chronic physical illnesses lost an average of £1,400 a year. This figure increased to £1,700 for people with a mental illness.

As average wages have risen since this study was conducted, the loss of earnings could be even greater.

Additionally, in the seven years studied, 700,000 people are estimated to have left employment altogether because of a chronic physical illness.

There may also be extra costs associated with a serious illness or injury, such as specialist medical equipment or home alterations.

This means that if an employee experiences a lasting health problem, they could see their earnings fall while their outgoings rise, leading to significant financial issues.

Low productivity caused by health problems costs the UK economy £25 billion a year

As well as a cost to the individual, serious illness and injury can be expensive for businesses for several reasons.

First, if employees are off work regularly, productivity dips. Even when they are present, staff members with significant health problems might not be able to work to the best of their ability.

According to Citi Health, studies show that long-term health problems cost the UK economy an estimated £103 billion in 2023, with the highest cost being £25 billion in lost productivity.

Further to this, if staff members become so ill that they can no longer work at all, finding and training a replacement could be incredibly costly. Figures from NatWest estimate that it costs £60,000 to replace an employee who earns £30,000 a year.

The right support can reduce the costs associated with serious illness and injury

As an employer, there are several ways you can support employees with long-term health problems and potentially reduce the costs for both of you.

1. Provide health and wellbeing benefits

Certain workplace benefits that support good health may reduce the likelihood of employees developing medical problems in the first place. This might include:

• Mental health support services
• Access to private healthcare
• Gym memberships.

In some cases, these kinds of benefits are included with protection policies. While the perks won’t eradicate illness, a physically and mentally healthy workforce could mean fewer absences.

2. Accommodate the return to work for sick employees

When staff members are off work with a long-term condition, it’s important to be accommodating on their return.

Depending on the specific health problem, they might need extra accessibility support in the office. Offering flexible working hours and the ability to work part-time can smooth the transition, too.

Discussing their needs with them and helping where you can allows your employees to return to work sooner. You also support their recovery by moving at a pace that suits them. If you have existing group income protection, some of the process can be managed by the insurance provider.

3. Communicate your protection offering

The right protection benefits can significantly reduce the financial burden of illness on your employees.

An income protection policy, for instance, will provide regular payments to help them cover their outgoings if they’re unable to work for a period.

If they are diagnosed with a serious condition, critical illness cover could pay a lump sum to help with loss of earnings and the additional costs associated with their condition.

With these safety nets in place, they can remain financially stable and focus on their recovery.

From your perspective, this is an advantage, because it means they may be likely to return to work sooner.

As such, it’s important to communicate your benefits package to your employees, so they understand what help is available to them if they become seriously ill or sustain an injury.

Reviewing the package regularly will also ensure that it’s still suitable and offers adequate protection for your team, particularly as the business grows. This also helps your employees identify any gaps in cover and arrange their own protection, where necessary.

Get in touch

Together, we can create a benefits package that protects you and your employees against the cost of serious illness and injury.

You can email grouprisk@rfsl.co.uk or call 01534 502000 in Jersey or 01481 747940 in Guernsey to discuss your protection offering.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

Rossborough Financial Services Limited is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 and licensed by the Guernsey Financial Services Commission.