In recent years – following the pandemic, strikes and the cost-of-living crisis – the conversation around workers’ rights in Britain has become increasingly pertinent. A consensus has largely been formed: that as the economy evolves to include new ways of working and emerging industries, the relationship between employees and employers must also evolve. Improving workers’ rights isn’t just a matter of social justice; it can lead to enhanced productivity, higher employee morale, and, ultimately, a more robust economy.
Workers’ rights encompass various aspects, including fair wages, safe working conditions and job security, among other benefits. When these rights are upheld, employees can perform at their best, leading to increased efficiency and innovation. There are three particularly notable benefits to employees: increased job satisfaction; improved physical and mental well-being; and increased skills development.
The research backs this up. Unum has undertaken research on the mutual benefits a change to the status quo could have for both employees and employers. We take our role championing this cause seriously.
Last year, we commissioned the independent think tank WPI Economics to carry out research with over 4,000 employees. The findings were insightful. The research suggests that employees who are happy at work take, on average, nine fewer sick days per year compared to employees who report being unhappy, suggesting that health and happiness at work really does reduce sickness absence. Secondly, 80 per cent of employees reported that they are more productive at work when they are feeling healthy and happy – indicating that health and happiness at work are key drivers of productivity. Furthermore, employees who have good physical and mental well-being are nearly two and a half times more likely to be happy at work than those with poor physical and mental health – again, highlighting how physical and mental well-being are central to employee happiness.
There are also benefits to businesses from better working conditions. A happy and healthier workforce is one that has employees who are less likely to need to leave their jobs due to long-term sickness. They’re much more likely to want to stay both in their current role and more generally in work. In research commissioned by Unum, over half of the employees surveyed – representing more than 16 million people in the UK workforce as a whole – said that improvements in health and well-being offerings provided by their employer would lead them to take less time off and/or increase their productivity. When employees are not constantly worrying about job security or unfair treatment, they can focus their energy on achieving organisational goals. Additionally, organisations that uphold strong workers’ rights often enjoy a better reputation in the market – which can help attract top talent and can also lead to improved customer loyalty.
The ripple effect from reforms to workers’ rights to create a happy, healthier, and more productive workforce is clear for all to see. It is encouraging to see that the new Labour government is aligned on this. Announced long before Labour took office, its “New Deal for Working People” proposals include reforms to areas such as statutory sick pay, enforcing safe and healthy workplaces and encouraging a fulfilling work-life balance. The upholding of Labour’s commitment to bring forward the legislation on workers’ rights reform within the first 100 days of taking office is extremely encouraging.
Angela Rayner, the Deputy Prime Minister and Housing Secretary, has been forthright in connecting how a better deal will not only benefit employees and workers but also help drive economic growth – the central mission of the Labour government. The key component of the New Deal is the commitment to raising wages, particularly for low-income workers; not only could this lift people out of poverty, but it could also increase consumer spending, which can stimulate the economy. Additionally, the New Deal’s aim to boost employee and skills training goes a long way in ensuring that employers have a workforce that is well equipped to meet the demands of a changing economy, in turn also boosting productivity and fostering loyalty.
As Rayner encouragingly said in an August meeting with businesses and trade unions at the Department for Business and Trade: “Our plan to ‘Make Work Pay’ will bring together workers and businesses, both big and small and across different industries, for the good of the economy.” In addition to meeting the economic growth aspirations of the Labour government, simply put, a healthier and happier workforce will go a long way in meeting another one of the government’s missions: to have a healthier nation.
A report released in September by the Institute for Public Policy Research (IPPR) set out to explore the relationship between our health and our economy at a time when Britain is facing decline on both fronts. It supports many of our beliefs and outlines ten policy recommendations to add ten years to our population’s healthy life expectancy over the next three decades – notably a focus on healthy work and workplaces, appropriate work support after we fall sick, and meaningful access to products that support our health. Researchers found a “strong association” between job quality and health – focusing on pay, contractual security, flexibility, autonomy, job satisfaction and well-being. Unum’s research links better working conditions to happy and productive employees.
Our research showed that boosting access to health and well-being services at work, alongside halving the number of unhappy employees, could see companies collectively benefit by £6.4bn a year through reduced lost output from sickness absence and presenteeism. On top of this, increasing productivity as a whole could benefit companies by an additional £7.3bn per year. As workers’ rights reforms loom on the horizon, we at Unum are looking forward to seeing the positive impact these changes could bring to individuals, businesses and the broader economy over the next few years.
To find out more about supporting employee well-being, read Unum’s “Health, Happiness and Productivity” report.
This article first appeared in our print Spotlight report on Healthcare, published on 25 October 2024.
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