Keep Britain Working Review: what Sir Charlie Mayfield’s findings mean for UK employers

Rising inactivity is reversing progress:

For the first time in decades, UK workforce participation is falling. Every inactive worker represents lost capability, knowledge and continuity. Businesses can no longer rely on a steady flow of available labour; instead, they must retain and protect the talent they already have.

Ill-health is the main driver:

Physical and mental-health conditions — from musculoskeletal disorders to stress and anxiety — now account for most long-term absences. Employers who invest in early support, wellbeing programmes and flexible work options see measurable returns in retention and morale.

The £6 billion cost vs £18 billion gain:

The Keep Britain Working Review estimates employers need to invest around £6 billion annually in workplace health initiatives. Yet if applied effectively, the wider economy could see £18 billion in productivity and social benefit. The lesson: prevention costs less than replacement.

Business performance impact:

Unaddressed health issues fuel higher absence, turnover and disengagement. In SMEs, where each role is critical, one long-term absence can create major disruption. A proactive health strategy builds resilience, reduces hidden costs, and boosts productivity per head.

Prevention:

• Promote healthy work design — manageable workloads, ergonomic setups, supportive culture.
• Offer health MOTs or wellbeing check-ins annually.
• Encourage proactive use of leave and rest breaks to avoid burnout.

Early Intervention:

• Train managers to spot early signs of stress or declining performance.
• Provide confidential access to occupational-health or employee-assistance programmes.
• Keep communication open during short absences to plan return-to-work before disengagement sets in.

Stay-in-Work:

• Adjust duties, hours or location where possible rather than defaulting to sick leave.
• Use “fit notes” creatively — focus on what an employee can do.
• Celebrate small successes in maintaining attendance and contribution.

Return-to-Work:

• Implement phased returns with agreed milestones.
• Assign a return-to-work buddy or mentor.
• Regularly review adjustments to ensure they remain suitable.

Inclusion:

• Review policies through the lens of disability and long-term conditions.
• Engage staff networks to inform policy updates.
• Publicise your inclusive practices externally — it strengthens employer brand and recruitment.

Resilience equals competitiveness:

Smaller teams depend heavily on each individual. A robust wellbeing strategy minimises single-point failures and maintains business continuity.

Early action is cheaper:

Investing in early support costs less than long-term absence or tribunal claims. Introduce a “first-week check-in” rule for any sickness absence to maintain engagement and plan recovery.

Inclusion builds loyalty:

SMEs that demonstrate flexibility and empathy retain top talent longer. Showcase inclusive policies in recruitment materials — it attracts values-aligned candidates.

Workforce health drives valuation:

During due diligence, buyers assess people risk. Lower absence and high engagement translate to stronger valuation multiples. Integrate wellbeing metrics into investor packs or board reports.