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Occupational Health - UK - June 2015

Occupational Health - UK - June 2015

“Many businesses still view occupational health as an uncertain investment in improving business performance, but the case for investing in OH has never been greater. Absenteeism costs the UK economy up to £31 billion a year, with the average UK worker taking an estimated 4.5 days off sick annually according to LFS data.”

– Lewis Cone, B2B Analyst

This report will explore the following key questions with regard to occupational health in the UK:

What are the key determinants driving the occupational health industry?
Was the industry affected by the financial crisis and the slow recovery? If so, how has it developed and changed since?
How have government schemes influenced market demand and supply?
How has the provision of occupational health services changed over recent times?
What are the key issues that the industry needs to address to expand its service?
What does the future hold for occupational health services?


EXECUTIVE SUMMARY
Market size
Figure 1: UK Employment, 2014
Figure 2: UK Market Segmentation for Occupational Health Provision at Salary Costs for Non-
Commercial Operators, by Type of Provider, 2010-14
Market trends
Figure 3: Average Annual Cost of Absence, 2010-14
Figure 4: Analysis of Cost of Workplace Illness and Injury, by Cost Bearer, 2006/07-2013/14
Market factors
The launch of the Fit for Work service seeks to improve first contact and uptake of initiatives and schemes
Lack of clarity on the true value of the costs of workplace ill-health is still a large barrier to market development
The ageing working population will change the nature of ill-health in the workplace
Low supply of suitably qualified occupational health professionals amid lack of incentives to enter the profession
Industry structure
Consumer
Forecast
In 2015, the value of the UK occupational health market is forecast to increase by 4.4% at 2014 prices before demonstrating marginally stronger growth until 2019
Mental ill-health and stress continues to occur in the workplace
Technological advancements will help improve the base of occupational health networks and enable the formation of treatment benchmarks
What we think
KEY INSIGHTS
Which factors are driving industry growth?
What kind of impact has legislation had on the market?
What are the implications of growth in the market? Will these barriers reduce future development?
OH workforce issues
Level of penetration of occupational health services
What innovations are we seeing in the market?
What does the future hold for the industry?
INTRODUCTION
Definitions
Methodology
Abbreviations
MARKET POSITIONING
Figure 5: Sickness Absence among UK employees, 2009-13
Figure 6: Sickness Absence among UK employees, 2009-13
Figure 7: Incidence of Sickness Absence Among Employees, 2014
Figure 8: Government Estimates of Potential Savings from Establishing the Fit for Work initiative, 2013
UK ECONOMY
Key points
Overview
Figure 9: UK GDP, 2003-14 Q2
Figure 10: Quarters after GDP Peak, 1979, 1990 and 2008
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Imports
Exports
MARKET FACTORS
Key points
Legislation
Ethical
Economic
Cost effectiveness
Background political policy
Economic conditions
Workforce factors
Figure 11: Working Hours Lost Due to Sickness Absences, by Gender, 2009-13
Figure 12: Percentage of working hours lost due to sickness absences, 2009-13
Figure 13: Working Hours Lost Due to Sickness Absences, by Age Group, 2009-13
Figure 14: Percentage of working hours lost due to sickness absences, 2009-13, by Age Group
Legislation
MARKET SIZE
Key points
Introduction
Public sector
Figure 15: Analysis of Employment in Central and Local Government, by Size of Company, 2014
Figure 16: Analysis of Employment in Central and Local Government, 2014
Private sector
Figure 17: Analysis of Employment in the Private Sector, by Size of Company, 2014
Figure 18: Analysis of Employment in Private Sector, 2014
Overall market
Figure 19: Differences in Absence and Workforce Size, 2011- 2014
Figure 20: Differences in Average Proportion of Absence, by Duration of Absence, 2013-14
Figure 21: Proportions of Organisations Monitoring the Cost of Employee Absence, by Type of
Organisation and by Size of Company, 2014
Figure 22: Average Annual Cost of Absence, per employee per year, by Sector, 2010-14
Figure 23: Average Annual Cost of Absence, 2010-14
Figure 24: Analysis of Payment of Occupational Sick Pay, 2012
Figure 25: Segmentation of the Cost of Absence to the Economy, 2010
Figure 26: Analysis of Cost of Workplace Illness and Injury, by Cost Bearer, 2006/07-2013/14
Figure 27: Analysis of Cost of Workplace Illness and Injury, by Cost Bearer, 2006/07-2013/14
Industry analysis
Figure 28: Average Sickness Absence by Sector, 2010-2014
Figure 29: Proportion of Respondents with Organisational Sickness Reduction Targets, 2010-14
Figure 30: Industries Utilising the OH Advice Line, by Country, 2009-11
Reasons for absence
Figure 31: Common Causes of Short Term Absence, 2012
Figure 32: Common Causes of Short Term Absence, 2012-14
Figure 33: Percentage of respondents identifying most common cause of short-term absence, 2014
Figure 34: Common Causes of Long-term Absence, 2012-14
Figure 35: Percentage of respondents identifying most common cause of long-term absence, 2014
Figure 36: Number of days lost through sickness absence in the UK, by Reason, 2009-13
Figure 37: Causes of Work-related Stress, by Type of Organisation, 2014
Figure 38: Methods Being Used To Identify and Reduce Stress, by Type of Organisation, 2014
Regional analysis
Figure 39: UK Regional Employment 2013, 2014 and 2015
Figure 40: Regional Public Sector Employment in England, 2010-14
Figure 41: Average Sickness Absence by Region, 2009-14
Figure 42: Regional Sickness Absence, 2009-14
Market development
Figure 43: The UK Market for Occupational Health Provision at Salary Costs for Non-Commercial Operators, 2010-14
Figure 44: UK Market Segmentation for Occupational Health Provision at Salary Costs for Non- Commercial Operators, by Type of Provider, 2010-14
Figure 45: UK Market Segmentation for Occupational Health Provision at Salary Costs for Non- Commercial Operators, by Type of Provider, 2010-14
MARKET TRENDS
Key points
Government policy
Business practice
Health screening
THE CONSUMER – HEALTH ISSUES
Key points
More than seven in every ten workers have suffered a health issue over the last year
Figure 46: Most Common Health Issues, April 2015
Figure 47: Most Common Health Issue, April 2015
Female millennials twice as likely as male millennials to suffer mental ill-health
Figure 48: Most Common Health Issues, by Gender and Age Group, April 2015
Figure 49: Most Common Health Issues, by Gender and Age Group, April 2015
Figure 50: Most Common Health Issues, by Company Size, April 2015
THE CONSUMER – COMPANY INITIATIVES AND BENEFITS
Key points
Figure 51: Available Health Initiatives or Benefits at Work, April 2015
Figure 52: Available Health Initiatives or Benefits at Work, April 2015
SMEs lead length of leave, while more than half offer sick pay
Figure 53: Available Health Initiatives or Benefits at Work, in SMEs, April 2015
Figure 54: Available Health Initiatives or Benefits at Work, in SMEs, April 2015
THE CONSUMER – ATTITUDES TOWARDS HEALTH INITIATIVES
Key points
Flexibility in work and longer sanctioned holidays are most favoured by workers
Figure 55: Most Important Health Initiatives or Benefits at Work, April 2015
Figure 56: Most Important Health Initiatives or Benefits at Work, Top Five Options, April 2015
INDUSTRY STRUCTURE
Key points
Industry development and structure
Figure 57: Structure of the UK Occupational Health Industry, 2014
Figure 58: Structure of the UK Occupational Health Industry, 2014
Figure 59: Analysis of the changes in the structure of the ‘Other human health activities’ industry, 2010- 14
Figure 60: Analysis of the changes in the structure of the ‘Other human health activities’ industry, 2010- 14
Structure by employment
Figure 61: Analysis of the employment structure of the ‘Other human health activities’ industry, 2013 and 14
Figure 62: Analysis of the employment structure of the ‘Other human health activities’ industry, 2014
Structure by turnover
Figure 63: Analysis of the financial structure of the ‘other human health activities’ industry, 2013 and 2014
Figure 64: Analysis of the financial structure of the ‘other human health activities’ industry, 2014
COMPANY PROFILES
AXA ICAS HEALTHCARE OCCUPATIONAL HEALTH SERVICES
Figure 65: Financial Analysis of AXA Icas Occupational Health Services, 2009-13
Company outlook
BUPA OCCUPATIONAL HEALTH
Figure 66: Financial Analysis of Bupa Occupational Health, 2009-13
Company outlook
CAPITA HEALTH AND WELLBEING SOLUTIONS
Figure 67: Financial Analysis of Capita Health Solutions, 2009-13
Company outlook
CIGNA HEALTHCARE OCCUPATIONAL HEALTH
COPE OCCUPATIONAL HEALTH AND ERGONOMIC SERVICES
DURADIAMOND HEALTHCARE
Attendance management
Employee health and wellbeing
Figure 68: Financial Analysis of Duradiamond Healthcare, 2010-2013, (£ 000)
Company outlook
HCA INTERNATIONAL
Figure 69: Financial Analysis of HCA International, 2009-13
Company outlook
Figure 70: Financial Analysis of Roodlane Medical, 2009-13
Company outlook
HEALTH MANAGEMENT
Figure 71: Financial Analysis of Health Management, 2009-13
Company outlook
INTERNATIONAL SOS (FORMERLY ABERMED)
Figure 72: Financial Analysis of International SOS/Abermed, 2010-14
Company outlook
MEDIGOLD
OCCUPATIONAL HEALTH CARE LIMITED
Figure 73: Financial Analysis of Occupational Health Care Limited, 2009-13
Company outlook
OH ASSIST (FORMERLY ATOS HEALTHCARE)
Figure 74: Financial Analysis of Atos Healthcare/OH Assist, 2009-13
Company outlook
PEOPLE ASSET MANAGEMENT (PAM) GROUP
SYNGENTIS
Company outlook
WORKING ON WELLBEING LTD (FORMERLY SERCO OH)
Figure 75: Financial Analysis of Serco OH, 2008-12
Figure 76: Financial Analysis of Working on Wellbeing Ltd, 2013-14
Company outlook
Figure 77: Analysis of profiled companies’ turnover, 2009-13
FORECAST
Key points
The market
Market development
The uncertainty surrounding the impact of the Fit for Work service
Policy gaps holding back development
Organisation approach to occupational health provision
Figure 78: Percentage of workers whose workplace is a risk to health and safety, 2010
The impact of the ever-ageing working population
Type of OH provider
Market forecast
Figure 79: UK Occupational Health Market Segmentation Forecast, by Provider, 2015-19
Figure 80: UK Occupational Health Market Segmentation Forecast, by Provider, 2015-19
Figure 81: Development of the UK Occupational Health Market, 2009-19
The growing emergence of mental ill-health and stress in the workplace
OH services helping the unemployed
Industry
Skill shortages and inability to attract suitably qualified OH staff
Technological advancements
Presenteeism
General occupational health perception
Financial pressures
FURTHER SOURCES AND CONTACTS
Trade associations, regulatory authorities and independent professional bodies
The Association of Occupational Health Nurse Practitioners
British Occupational Hygiene Society
British Safety Council
Commercial Occupational Health Providers Association
Employee Assistance Professionals Association
Health and Safety Executive
Independent Safety Consultants Association
Institute of Occupational Medicine
Institution of Occupational Safety and Health
Royal Society for the Prevention of Accidents
The Safety Assessment Federation
Trade magazines
Employee Benefits
Health & Safety at Work
Health & Safety Matters
Occupational Health
Safety & Health Practitioner
Safety Management Magazine
Trade exhibitions
Health and Safety North
IOSH Conference 2015
Occupational Safety & Health Forum
Occupational Therapy Show
Safety & Health Expo
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

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