UK 
United States
The United Kingdom faces a significant challenge in integrating individuals with health conditions into the workforce. Recent research indicates that one in five UK workers (21%) report health limitations, ranking among the highest in the EU15. Moreover, the UK has one of the widest employment gaps between people with and without health conditions.
This growing divide is particularly concerning as the number of working-age people with long-term illnesses has reached record highs. Many individuals with health conditions are unable to access or remain in work due to a lack of employer support, insufficient flexibility or inaccessible workplace policies. As a result, businesses are missing out on valuable skills and the economy is experiencing lower workforce participation.
Addressing this issue is not just a social responsibility but a business imperative. In this blog, we’ll outline how employers can help close the ill-health gap by investing in inclusive hiring, workplace adjustments and employee wellbeing initiatives.
The ill-health employment gap: A closer look
The ill-health employment gap refers to the disparity in employment rates between individuals with health conditions and those without. In the UK, this gap has been steadily widening, particularly among the youngest and oldest workers. For instance, the likelihood of 16-24 year olds with health limitations being out of work more than doubled between 2018 and 2022. Similarly, for workers aged 55-64, the likelihood of being out of work due to ill health increased in the UK, while it declined in most EU15 countries.
Implications for businesses
The widening ill-health employment gap presents both challenges and opportunities for businesses.
A workforce that includes individuals with diverse health conditions brings valuable perspectives, strengthens problem solving capabilities and promotes a culture of inclusivity. However, failure to support employees with health conditions can lead to higher absence rates due to preventable long-term sickness, increased turnover and lower engagement and productivity as employees struggle with inadequate workplace support.
On the other hand, organisations that proactively address health and wellbeing in the workplace benefit from improved employee retention, higher productivity, a stronger employer reputation, and lower long-term costs. By leveraging HR strategies and technology, organisations can bridge the ill-health employment gap and create a work environment where all employees can thrive.
How HR and technology can close the gap
1. Inclusive hiring practices
HR teams can improve accessibility by partnering with disability and mental health organisations, offering alternative application processes and even training recruiters to remove bias. Using AI-driven recruitment software can help anonymise applications and reduce unconscious bias, ensuring fairer hiring decisions.
2. Workplace adjustments & wellbeing support
Providing flexible job roles, ergonomic equipment and mental health support is essential. Employee Assistance Programs (EAPs) and government-funded schemes can help fund workplace adaptations. HR platforms with wellbeing tracking and support features can also assist in monitoring employee health and engagement.
3. Flexible & hybrid working
Enabling flexible schedules and remote work allows employees to manage their health while remaining productive. Workforce management tools can help HR track flexible work arrangements, monitor productivity and ensure employees receive the support they need without excessive oversight.
4. Fostering an open & inclusive culture
Training managers and encouraging open discussions about health can reduce stigma. Online courses and educational sessions can encourage awareness and engagement among staff, helping to create a more positive, informed, and inclusive workplace.
5. Career development & retention strategies
Supporting career growth for employees with health conditions through return-to-work plans and mentorship is key. Performance management and career development tools can help track progression, ensuring equal opportunities for employees with long-term health conditions.
Conclusion
The UK’s ill-health employment gap is far more than a simple statistic, representing millions of talented individuals who are struggling to find or stay in work due to inadequate employer support. As businesses face labour shortages and rising absenteeism, addressing this gap must be a priority.
By taking proactive steps to support employee wellbeing, organisations can build more resilient and engaged teams, reduce long-term sickness absences, improve workplace culture and diversity, and strengthen their reputation as an employer of choice.
At Phase 3, we help businesses harness their HR technology to create inclusive, people-focused workplaces. Whether you need a full system health check to ensure such features are being utilised, or support with HR software selection, our experts are here to help.
