The state of UK occupational health 

The current UK occupational health market environment presents a complex landscape for organisations, characterised by escalating health-related risks, rising costs associated with sickness absence, increasing regulatory compliance demands, and constrained budgets. 

These factors compel organisations to carefully balance cost management with the growing need to support their workforce’s health and wellbeing. In this context, occupational health (OH) emerges as a critical driver in helping organisations anticipate and manage risk, prevent avoidable absences through effective return-to-work interventions, and optimise employee wellbeing. Consequently, OH should be regarded as a fundamental component of an organisation’s overall strategic approach to sickness absence management.

Despite its importance, OH faces several challenges that can limit its effectiveness. Often, OH services operate in isolation rather than as part of a coordinated health and wellbeing ecosystem, which is essential for effective sickness absence and health management. Many employers also use OH reactively, only seeking help when issues arise, missing opportunities to prevent longer-term absences. Additionally, some OH providers struggle to adapt to changing organisational needs, including challenges with technical systems that can’t be integrated easily with an organisation’s platforms for effective management information and reporting. This lack of integration and limited communication between employers and OH providers can lead to misunderstandings and less effective outcomes.  

Concerns also exist around unclear roles among those managing sickness absence, which can cause confusion and delays in requesting OH support, potentially extending absence periods. Some employers express dissatisfaction with the quality of OH reports, which sometimes lack clinical insights or fail to fully consider job roles and ergonomic risks. Time constraints during appointments can limit thorough assessments. Furthermore, many organisations lack the in-house expertise needed to manage sickness absence and OH effectively, making it difficult to develop strategies aligned with their workforce and business goals.

Despite these challenges, there are clear examples where OH services have been successfully integrated and optimised. The cornerstone of an effective OH service is strong relationship management between the OH provider and the employer. When providers take the time to understand an organisation’s processes, culture, and specific requirements, the overall OH experience improves significantly. Building such relationships requires commitment and time but yields substantial benefits in terms of tailored support and proactive health management. 

It is also important to recognise that OH providers differ in their offerings. Employers should carefully evaluate potential providers to ensure their approach aligns with the organisation’s size, industry, benefits structure, and workforce objectives. This evaluation should be conducted in the context of the wider health ecosystem, considering opportunity to integrate with the organisation’s other benefit providers and support mechanisms already in place, such as vocational rehabilitation support services available through group income protection (GIP), to ensure a cohesive and comprehensive approach to managing absence and optimise employee wellbeing. 

At Mercer Marsh Benefits (MMB), we bring in-house expertise and clinical knowledge to support employers in optimising their OH provision and broader sickness absence management strategies. Our clinicians possess the experience and relationships necessary to conduct thorough OH provider reviews and integrate OH services within the wider health ecosystem. By ensuring all key providers work collaboratively, we help organisations meet their strategic workforce objectives and fundamentally enhance their overall approach to managing sickness absence. MMB can also engage suitable organisations with our OH preferred provider arrangement (PPA), designed for organisations with low volume requirements. Available on a pay as you go basis, it can offer a cost-effective solution for those with non-complex needs. 

The evolving challenges of today’s workforce demand is that OH be more than a reactive, isolated service. Instead, it must be embedded strategically within a comprehensive health ecosystem, supported by strong partnerships and expert guidance. By doing so, employers can better manage sickness absence, costs, comply with regulatory demands, and most importantly, support the health and wellbeing of their employees — creating a resilient and productive workforce for the future.