Sick Leave Rates Climb in New Zealand, Costing Economy $4 Billion

Research conducted by Southern Cross Health Insurance and Business NZ reveals a significant increase in sick leave among employees in New Zealand. On average, staff members took nearly seven days of sick leave in 2023, marking an increase of 1.4 days compared to two years prior. This rise is estimated to cost the national economy approximately $4 billion annually.

In an interview with Mike Hosking, Katherine Rich, Chief Executive of Business NZ, discussed the implications of these findings. She noted that while the increase in leave entitlements plays a role, many employees are also adhering to guidelines aimed at preventing the spread of illness among coworkers. Rich emphasized the shift in workplace culture post-COVID-19, stating that employees are becoming more conscious of their health and wellness.

“People are less inclined to push through sickness,” Rich remarked, contrasting the current mindset with previous attitudes that encouraged working while unwell. She explained that this cultural change is significant, as individuals prioritize their health and the well-being of their colleagues.

Impact on Businesses and the Economy

The increase in sick leave not only affects individual workplaces but also has broader economic implications. With rising sick leave days, businesses face challenges in maintaining productivity levels. According to the research, the financial burden on employers and the economy is substantial, prompting a need for companies to adapt to this new reality.

Rich highlighted that organizations will need to reassess their approaches to employee health and leave policies to mitigate these growing costs. This may include revising sick leave entitlements, enhancing wellness programs, and encouraging a culture where employees feel safe to take necessary time off without fear of repercussions.

Shifting Attitudes Towards Health

The COVID-19 pandemic has undeniably altered perceptions of health in the workplace. Employees are increasingly aware of the importance of taking sick leave not just for their own recovery, but also for the health of their teams. Rich pointed out that this represents a significant cultural shift, moving away from the notion of “soldiering on” when unwell.

This evolving attitude towards sick leave reflects a broader understanding of workplace wellness, with implications for both employee satisfaction and overall productivity. As organizations navigate these changes, they must consider how best to support their workforce in a manner that aligns with contemporary health priorities.

In summary, the findings from Southern Cross Health Insurance and Business NZ highlight a critical change in employee sick leave patterns, driven by evolving attitudes towards health and wellness. As New Zealand grapples with the economic impact of these trends, businesses will need to adapt to ensure they can support their employees while maintaining productivity.