Findings from the WTW Absence Management Survey, 2026
Rising levels of sickness absence and ill-health related inactivity have become a growing concern in the UK in recent years. The rising number of days lost due to absence and long-term ill-health is increasing cost pressures and operational challenges for employers. For many companies the question is how they can mitigate and manage these burdens, against a backdrop of growing mental health issues and a rising incidence of chronic and musculoskeletal conditions due to an ageing workforce.
The findings from our 2026 survey indicate that employers are adopting a broader, more strategic approach to managing absence while keeping a close eye on costs. They aim to embed absence management within their overall HR strategy and equip managers to address issues at the source. At the same time, there is a growing emphasis on prevention, with organisations prioritising employee wellbeing initiatives. Finally, employers are seeking to control costs by getting more value from their providers, taking targeted action on high-cost cases, and leveraging analytics to better understand the drivers behind claims.
Here are four key takeaways from our latest research.
Employee absence is increasingly a concern for UK businesses. About half (51%) report an increase in short-term absence over the past two years, while 55% report an increase in long-term absence and disability over the same period. As absence rates grow so do costs. Over half (52%) of organisations report facing challenges due to increasing costs associated with absence and over a quarter say they are facing rising costs due to disability (Figure 1).
Over the last decade, mental health issues, especially anxiety and depression, have risen significantly, particularly among young people[1]. Mental health issues have become a growing driver of absence, and one that many employers feel less well equipped to manage. As a result, 83% of companies report it as a key area to address. The next priority for employers is musculoskeletal (MSK) and other chronic conditions (63%), which are expected to only grow in importance as populations age.
In response, UK employers are rethinking their absence management strategies, with a clear shift toward a more integrated approach. Absence is increasingly viewed as part of a broader people strategy, rather than an isolated set of policies. Nearly three in five (57%) organisations are prioritising embedding it within their wider HR strategy, which includes sick pay, benefits, wellbeing and leave policies.
Enhanced support for wellbeing and prevention is also a key priority for nearly half (46%) of companies. By investing in wellbeing, companies are seeking to reduce the incidence and severity of absence and disability. Examples of programmes include mental health initiatives (like resilience training or on-site counselling), ergonomics programmes and general wellness campaigns around exercise and lifestyle. Over a third of companies (36%) are looking to increase their HR teams' expertise in wellbeing, to support these steps.
This focus on wellbeing is particularly strong among organisations that are leading the way on managing absence. These organisations have progressed from foundational elements (reviewing policies and procedures, streamlining operations and administration) to more value-added tactics.
Our survey reveals the escalating costs of absence for many companies. In response, many employers are taking steps to bring cost downs by taking a more active approach to managing their provider relationships.
Companies are shifting from a passive focus on renewals to an approach that emphasises regular performance monitoring and more demanding service expectations. Many employers plan to review provider performance metrics (46%) and service capabilities (54%) over the next two years. For example, an employer might review how quickly their occupational health partner can get an employee in for an assessment or evaluate the rehabilitation success rates of their income protection provider. To further improve value for money, over half of companies (55%) plan to renegotiate terms or switch providers and a third (32%) are looking to add performance standards, to hold providers accountable for service standards (figure 2).
Provider management also extends to looking at new solutions, especially ways to tackle high-cost cases. Most UK employers carry out health and safety and risk assessments (80%) and pre-employment questionnaires (58%) to understand and better manage their risk. For case management, most companies conduct return to work assessments (83%) and have counselling support during illness or disability (78%). But many employers are interested in offerings such as condition-specific pathways (35%), which are specialised programmes to manage conditions such as musculoskeletal injuries (figure 3). These programmes provide effective support that helps shorten recovery time and reduce relapse.
Finally, companies are seeking to develop a better understanding of the drivers of absence and its financial impact on their business. This includes forecasting the costs and risks associated with absence (56%), enhancing claims reporting (51%) and identifying segments of the workforce that are at higher risk of absence (48%). Together, these efforts provide companies with stronger analytical tools to manage absence more effectively.
Managers are the first line of defence in managing absence, and many organisations recognise that this is an area where they are falling short. Most employers are looking to address this, by enhancing manager capabilities and effectiveness. Three in five (59%) plan to train managers to identify and address specific issues such as employee mental health, while 56% will provide managers with education on absence policies and the support available. The aim is to ensure that company policies are applied consistently and that employees are guided and supported effectively.
Employers want to help employees more directly, by building greater engagement and awareness of absence policies and resources. To that end, half are to review their communication around absence, and 45% are looking to enhance navigation solutions, particularly around how to access clinical support and treatment. This goes hand in hand with the increased focus on chronic conditions and the use of condition-specific care pathways.
The overarching message from our survey is clear: to be successful in lowering absence rates, reducing costs and building a healthier and more productive workforce will require absence management in the UK to shift from a reactive process to a proactive, strategic function. That will mean building more resilient absence management capabilities today, to be better prepared for the future.
Here's three things you can do now:
WTW supports organisations in building effective absence strategies and improving employee wellbeing through:
If you would like a personalised benchmark summary to understand how your organisation compares with others and to examine the trends outlined above in more detail – to help your organisation to build a plan to turn its ambitions into reality – please contact your local WTW representative to participate in the survey today.
