Athos Rushovich, Director of Specialist Health Distribution at Vitality says that a wealth of data now points to employee health as one of the biggest factors impacting productivity, adding it’s time to get back to basics.

 Nearly one in five (17%) SME employees in the tech and IT sector say not being able to exercise is impacting their productivity, with 14% flagging musculoskeletal concerns.* This arguably seems like a quick fix. So, why does it remain a nagging issue? Are employers so knee-deep in the complexities of running a business, they’re missing the obvious – the fact that when people feel their best, they perform at their best?

Getting back to basics arguably makes sense. A wealth of data now points to employee health and wellbeing representing a vital contributor to thriving businesses. And thriving, not just surviving, is likely uppermost in most employers’ minds right now.

Productivity ‘solutions’ fall short due to lack of engagement

It’s no secret that the UK faces a productivity challenge. Lost productivity more than doubled between 2014 and 2023 and our research revealed that ill-health’s impact on productivity cost the UK economy an estimated £860bn during this same period. Presenteeism, which is when employees turn up but are unable to perform at their best, accounted for approximately 90% of this figure.

SMEs are crucial to helping solve this problem. Yet schemes aimed at boosting SME productivity levels – such as Help to Grow: Digital (HtGD), which included online learning, guidance and new software discounts – have fallen short of expectations, often due to low engagement.

Our research revealed that unhealthy employees are on average significantly less productive. We found that inactive employees lose 28% more productive time than those who regularly exercise.

That said, there’s a lot of moving parts in the productivity conundrum. And it would be naïve of us to suggest that improving employee health represents nirvana. But, then again, it would be equally naïve to ignore what the data is saying. Especially when you consider that loss of productivity due to health and wellbeing issues can be prevented, simply by offering the right support to employees.

What are the health-related hindrances to productivity?

 Recent data reveals that four in five (84%) SME employees experience health-related stressors that hinder their productivity, with one in three (31%) impacted by an inability to manage their work life balance.

Other factors impacting productivity include mental health concerns, which one in five employees saying it affects them, and over a quarter (27%) specifically calling out burnout.

And, as highlighted in the introduction to this article, physical health concerns also impact employee productivity.

We’ve previously shown, through our Britain’s Healthiest Workplace findings, that an employee at risk of depression is estimated to lose 151% more productive time, with physically inactive employees losing 28% more productive time, on average compared to those not at risk.

 How can employers make value-driven improvements?

 With an ongoing productivity crisis affecting most businesses across the UK, including the tech and IT sector, there is much to be gained from prioritising and better understanding employee health.

Furthermore, there is also much that can be done about it, through understanding your workforce and putting in place interventions that make a big impact quickly.

• Develop a targeted strategy and track the impact, with relevant and targeted interventions, developed around specific business needs, data and context. The strategy should be supported by data and reporting mechanisms to monitor progress and understand the impact.
• Integrate physical activity initiatives into workplace wellness programmes and daily routines, to improve mental health and productivity. This can include standing desks, cycling schemes, or encouraging lunchtime walks or activity away from the desk. Consider creating team-based step challenges. The emphasis should be on fun, inclusive challenges that create social engagement and stimulate step-based activity; in particular, for those employees who – for whatever reason – are less active. Whatever you do, ensure data-driven measurement of the impacts.

*Research was conducted by Opinium for Vitality by 500 UK Tech and IT SME employees in January 2025