Table of Contents
Executive Summary
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- Market forecast
- Unprecedented threat to health from COVID-19 will see OH market decline as the UK reacts to pandemic
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- Figure 1: Post-COVID-19 UK occupational health market forecast, by provider, 2020-2024, (£ million at 2019 prices)
- Market size
- Record high market value achieved but low penetration remains
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- Figure 2: UK market segmentation for occupational health provision at salary costs for non-commercial operators, by type of provider, 2019, (£ million)
- Impact of COVID-19 on Occupational Health
- Short, medium and long-term impact on the industry
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- Figure 3: Expected impact of COVID-19 on occupational health, short, medium, and long-term, 1 June 2020
- Market Trends
- Wales and Scotland record highest sickness absence rate
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- Figure 4: Sickness absence rates, by region, six highest rates, 2018, (%)
- Stress, depression or anxiety account for highest number of working days lost
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- Figure 5: Estimated working days lost due to work-related illness or injury, by illness or injury, 2018/19, (% of total)
- The consumer
- Over a third of people have had a minor illness in the last year
- Pension schemes and flexible working most commonly in place
- Flexible working most in-demand initiative or benefit from workers
- 80% of employees believe initiatives and benefits make them feel valued
- What we think
The Impact of COVID-19 on Occupational Health
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- Short, medium and long-term impact on the industry
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- Figure 6: Expected impact of COVID-19 on occupational health, short, medium, and long-term, 1 June 2020
- Short-term
- Medium-term
- Long-term
- Opportunities and threats
- Long-term impact of COVID-19 could see industry prove its true worth…
- …but the reopening of workplaces and the opportunities this brings will be slow to begin with
- The rise in remote working will see a rise in musculoskeletal and mental health issues
- Impact on the market
- Vast changes in provision expected from 2020 onwards
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- Figure 7: Post- and pre-COVID-19 occupational health market forecast, by provider, 2020-2024, (£ million at 2019 prices)
- Shifts in business behaviour
- A fifth of businesses remained temporarily closed or paused trading by mid-May
- How a COVID-19 recession will reshape the industry
- Negative and prolonged hits to company turnovers will lessen demand for ‘luxury’ OH services
- Impact on the marketing mix
- More mobile employees will mean OH services will also need to follow suit
- Cost of OH programmes will have to adapt to business circumstances and situations in order for uptake levels to remain steady
- COVID-19: UK context
Issues and Insights
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- OH services more important than ever before in helping guide employers’ response to COVID-19 outbreak
- The facts
- The implications
- Industry remains slow in providing evidence of the business value of OH services
- The facts
- The implications
The Market - What You Need to Know
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- Record high market value achieved but low penetration remains
- Unprecedented threat to health from COVID-19 will see OH market decline as the UK reacts to pandemic
Market Size
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- Workforce
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- Figure 8: Working hours lost due to sickness absence, 2014-2018, (%)
- Figure 9: Working hours lost due to sickness absence, by age group, 2014-2018, (%)
- Public sector
- Employment structure
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- Figure 10: Analysis of employment in central and local government, by size of company, 2019, (number of businesses and 000s of employees)
- Private sector
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- Figure 11: Analysis of employment in the private sector, by size of company, 2019, (number of businesses and 000s of employees)
- Overall market
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- Figure 12: Differences in absence and workforce size, 2015-2020*, (average days lost per employee)
- Statutory sick pay
- Cost of absence
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- Figure 13: Analysis of cost of workplace illness and injury, by cost bearer, 2007/08-2017/18, (£ billion in 2017 prices)
- Reasons for absence
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- Figure 14: Number of days lost through sickness absence in the UK, by reason, 2014-2018, (millions)
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- Figure 15: Estimated working days lost due to work-related illness or injury, by illness or injury, 2014/15-2018/19, (000s)
- Stress
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- Figure 16: Causes of work-related stress, 2020, (% of respondents, top three causes)
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- Figure 17: Methods used to identify and reduce stress, 2020, (% of respondents that take steps to manage stress)
- Flexible working trends
- Regional analysis
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- Figure 18: UK regional employment, October-December 2017, 2018 and 2019, (000s and % of total)
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- Figure 19: Regional public sector employment, 2015-2019, (000)
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- Figure 20: Sickness absence rates, by region, 2018, (%)
- Market development
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- Figure 21: The UK market for occupational health provision at salary costs for non-commercial operators, 2015-2019, (£ million)
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- Figure 22: UK market segmentation for occupational health provision at salary costs for non-commercial operators, by type of provider, 2015-2019, (£ million)
Market Forecast
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- Overview
- Unprecedented threat to health will see OH market decline as the UK reacts to pandemic
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- Figure 23: Post- COVID-19 UK occupational health market forecast, by provider, 2020-2024, (£ million at 2019 prices)
- Figure 24: Pre- COVID-19 UK occupational health market forecast, by provider, 2020-2024, (£ million at 2019 prices)
- MPs recommend business coalition to help workers stay healthy
The Impact of the Economy
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- Annual GDP growth falls to decade low in 2019 and is expected to significantly decline in 2020 due to large economic shutdown
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- Figure 25: Annual GDP growth rate, 2015-2019, (%)
- Bank rate set at a record low of 0.1%
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- Figure 26: Bank rate, 2008-2020, by date of adjustment, (%)
Market Trends
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- Rising number of OH clinics and centres open to help expand services
- Companies spending on ‘corporate wellness’ doubles in response to growing workplace stress…
- …with more organisations adopting wellness strategies for employees
- Presenteeism persists in the workplace despite the threat of ill-health to other workers
Market Drivers
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- Larger corporates see turnover rise and growing employee numbers, boosting OH opportunities
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- Figure 27: Business population in the UK, private sector, by company size, 2015-19, (number, £ billion and millions employed)
- People working past traditional retirement age presenting challenges and opportunities for both OH providers and businesses alike
- NICE guidance promotes better communication of sickness absence policies
The Consumer - What You Need To Know
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- Over a third of people have had a minor illness in the last year
- Pension schemes and flexible working most commonly in place
- Flexible working most in-demand initiative or benefit from workers
- 80% of employees believe initiatives and benefits make them feel valued
The Consumer - Health Issues
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- Over a third of people have had a minor illness in the last year
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- Figure 28: Health issues, March 2020, (% of respondents)
The Consumer - Company Initiatives and Benefits
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- Pension schemes and flexible working most commonly in place
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- Figure 29: Company employee initiatives and benefits, March 2020, (% of respondents)
The Consumer - Employee Initiative and Benefit Choice
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- Flexible working most in-demand initiative or benefit from workers
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- Figure 30: Employee initiative and benefit choice, March 2020, (% of respondents)
The Consumer - Employee Initiative and Benefit Opinion
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- 80% of employees believe initiatives and benefits make them feel valued
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- Figure 31: Employee initiative and benefit opinion, March 2020, (% of respondents)
Companies and Brands - What You Need to Know
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- WHO recognises workplace burnout as an occupational phenomenon
- AXA PPP healthcare extends intermediaries support for their clients’ health and wellbeing
Industry Structure
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- Industry development
- WHO recognises workplace burnout as an occupational phenomenon
- Other recent industry developments
- Major industry groups
- Structure of the industry
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- Figure 32: Analysis of the changes in the structure of the ‘other human health activities’ industry, 2015-2019, (number of outlets and businesses)
- Structure by employment
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- Figure 33: Analysis of the employment structure of the ‘other human health activities’ industry, 2018 and 2019, (number of employees and outlets)
- Structure by turnover
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- Figure 34: Analysis of the financial structure of the ‘other human health activities’ industry, 2018 and 2019, (£000 and number of businesses)
Competitive Strategies
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- Health Shield sets focus towards preventative health and wellbeing solutions
- AXA PPP healthcare extends intermediaries support for their clients’ health and wellbeing
Company Profiles
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- Bupa Occupational Health
- Recent company activity
- Financial information
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- Figure 35: Financial analysis of Bupa Occupational Health, 2014-2018, (£000)
- Cigna Healthcare Occupational Health
- Recent company activity
- HCA International
- Recent company activity
- Financial information
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- Figure 36: Financial analysis of HCA International, 2014-2018, (£000)
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- Figure 37: Financial analysis of Roodlane Medical, 2014-2018, (£000)
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- Figure 38: Financial analysis of Blossoms Healthcare, 2014-2018, (£000)
- Health Management
- Recent company activity
- Financial information
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- Figure 39: Financial analysis of Health Management, 2014-2018, (£000)
- Iqarus
- Recent company activity
- Financial information
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- Figure 40: Financial analysis of Iqarus Limited, 2015*-2018, (£000)
- Medigold
- Recent company activity
- Financial information
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- Figure 41: Financial analysis of Medigold Health Consultancy, 2014-2019*, (£000)
- Optima Health Group Limited
- Recent company activity
- Financial information
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- Figure 42: Financial analysis of OH Assist Group Limited (now known as Optima Health Group Limited), 2016-2018, (£000)
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- Figure 43: Financial analysis of Working on Wellbeing Ltd, 2014-2018, (£000)
Appendix - Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade Associations, Regulatory Authorities and Independent Bodies
- British Occupational Hygiene Society
- British Safety Council
- Commercial Occupational Health Providers Association (COHPA)
- Employee Assistance Professionals Association
- Health and Safety Executive (HSE)
- Institute of Occupational Medicine
- Institution of Occupational Safety and Health
- Royal Society for the Prevention of Accidents
- The Association of Occupational Health and Wellbeing Professionals (iOH)
- The Safety Assessment Federation
- Trade Magazines
- Employee Benefits
- Health & Safety Matters
- Occupational Health and Wellbeing
- Safety & Health Practitioner
- Safety Management Magazine
- Trade Exhibitions
- Health and Safety Conference 2020
- Health and Safety
- National Safety and Health Conference 2020
- Occupational Health 2020
- Occupational Safety & Health Forum
- Occupational Therapy Show
- Safety & Health Expo
- Workplace Wellbeing Show
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