Vast areas of the UK working population are not covered by occupational-health provision at a time when the changing world of work – and the problems this has created – make such services more important than ever.
This is the conclusion of a report on the development of the UK occupational-health market carried out by business research company Market & Consumer Insight (MCi), which says the market declined by 3 per cent in 2011, continuing a downward trend already evident in 2010.
According to MCi, small and medium-sized businesses are vastly under-served by occupational-health service providers, largely owing to the fragmented nature of this sector, which makes it difficult to reach and less cost-effective for suppliers. The company cites the response to the recent NHS pilot scheme of occupational health advice lines as evidence of a need among SMEs for this provision but concludes: “There is a need for significant corporate education into the economic benefits of investment in occupational health at this level.”
An estimated 53 per cent of occupational-health services in the UK were outsourced to private companies in 2011, says MCi, and, while growth in the market has long been forecast, the recession appears to have introduced “a temporary ceiling” on development in this area. The company attributes this to cost pressures on large – and particularly public-sector – organisations, and profitability issues in the private sector.
However, it points out that while the recession has restricted the spend on occupational health it has also intensified demand “through the increase in stress under role change and job expansion”. This, says MCi, will potentially encourage more employers to invest in occupational-health service provision “since they are increasingly relying on a smaller number of individuals in order to remain economically competitive”.
But the company lamented the lack of action by the Government to offer financial incentives to employers to provide occupational health services (something that IOSH has long been calling for). Such incentives, as well as more helplines, physical regional/local facilities, and more lifestyle advice for employees would help widen the audience benefiting from occupational health services, it concludes.
The full UK Occupational Health Report costs £600 and is available from MCi – visit www.mbdltd.co.uk to find out more.
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