Alcohol – the negative impact on work and workplaces

Alcohol consumption across the UK remains worryingly high. According to the most recent Health Survey for England (NHS England 2024a), nearly one-quarter of adults drink at levels that put them at “increasing” or “higher” risk of alcohol-related harm. 

The damaging health effects of increased alcohol consumption are well-documented. Alcohol is known to cause at least seven types of cancer and is a primary risk factor for more than 30 health conditions. The more someone drinks, the greater their risk.

But alongside its health impacts, alcohol also imposes significant costs on workplaces and the wider economy. That’s the finding of a recent report by the Institute of Public Policy Research, which argues that tackling alcohol harm has a hidden growth dividend – by addressing alcohol-related harm, policymakers could achieve not only substantial health gains but also improvements in productivity and economic performance.

Jamie O’Halloran: "Alcohol consumption across the UK remains worryingly high."

Alcohol and presenteeism

Presenteeism – where people show up to work but operate at reduced capacity, whether due to illness or disengagement – is a major challenge for the UK economy. Previous IPPR research found that presenteeism cost UK businesses £25 billion more in 2023 than in 2019. Tackling health-related productivity loss is therefore essential if we are serious about addressing the UK’s persistent productivity problem. 

New IPPR analysis finds a strong correlation between presenteeism and the frequency of heavy drinking episodes. After controlling for a range of factors, we estimated that those who drink heavily on a weekly basis are 1.4 times more likely to exhibit presenteeism than those who drink but never heavily. This rises to 3.1 times for those who drink heavily daily or almost daily. This is indicative that alcohol’s harm expands to more than just health but has some wider economic effects. 

Alcohol and absenteeism

Alcohol consumption can also have a more direct effect on economic performance. After a night out drinking, many struggle to make it into work at all. As part of our research, we commissioned a nationally representative survey of working adults in the UK to find out how drinking affected work performance. 

We found that alcohol consumption with colleagues or at work events was linked to staff missing work. One-quarter (25 per cent) of those we surveyed had called in sick for work in the past six months after drinking with colleagues or at a work event.
Almost one third (32 per cent) had done so in the past year. Interestingly, this was not felt equally across employees. Alcohol-related absenteeism was more common among younger employees: 41 per cent of 18–24-year-olds and 47 per cent of 25–34-year-olds had done so in the past six months. 

Additionally, it was also higher for those at director and executive level – almost half (49 per cent) of directors and executives had called in sick after drinking with colleagues or at a work event in the past six months. These are two groups that are at the opposite ends of the seniority level – which indicates that tackling alcohol harm and its consequences will be felt throughout organisations.

Findings suggest that some workplaces act as stressors that encourage heavier drinking. Photograph: iStock
 
Workplaces and alcohol harm

Outside of sleep and rest, people in employment spend more time at their workplace than anywhere else and for many people they structure their lives around it. This gives workplaces substantial potential to promote good health – yet for many workers, this potential is not being realised.

Our findings suggest that some workplaces act as stressors that encourage heavier drinking. Almost one-third (29 per cent) of respondents reported drinking more than usual with friends when feeling stressed at work, and nearly one in five (19 per cent) said they drank more than usual with colleagues.

We also identify risks where alcohol consumption undermines physical and psychological safety. Over a third (35 per cent) of respondents believed that workplace drinking increases the likelihood of harmful or risky behaviour, and more than one in five (22 per cent) associated it with a greater risk of sexual harassment, bullying, or intimidation. 

Employees expect their workplaces to be doing more

One reason alcohol-related harm may be overlooked in HR policies or employee support is the belief that staff would feel uncomfortable or embarrassed if such issues were addressed openly in the workplace. This perception can discourage employers from taking proactive steps, even when these measures could benefit both employees and the organisation. 

However, our survey data suggest that employees already expect their employers to play an active role in reducing alcohol-related harm. This expectation is consistent across all levels of seniority. When asked how much responsibility employers should have for minimising alcohol-related harm at work, nearly three-quarters of employees said employers have at least “a fair amount” of responsibility – 33 per cent said “a great deal” and 39 per cent said “a fair amount.” Among directors and executives, this figure rose to 88 per cent.

When asked about their workplaces’ approach to alcohol, a majority of employees reported limited action from their employers. Fifty-eight per cent said their employer had not provided any guidance or training on alcohol consumption, 55 per cent said managers had not been trained to recognise or support staff who may be experiencing alcohol-related issues, and 52 per cent said alcohol-related issues were not included in their organisation’s wellbeing or HR policies. In short, while employees expect their employers to take a more active role in addressing alcohol harm, few workplaces appear to be doing so in practice.

Making workplace events more inclusive and less centred around alcohol is an important first step toward creating a more alcohol-aware culture. However, reducing alcohol-related harm requires a broader and more integrated approach – including stronger HR and management practices, and access to confidential, tailored support for employees. 

As our survey data suggest, comprehensive and coordinated workplace policies on alcohol remain the exception rather than the norm.

The report, Taking stock: counting the economic costs of alcohol harm, is at:
ippr.org/articles/taking-stock-economic-costs-alcohol

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Dr Jamie O’Halloran is Senior research fellow at IPPR (Institute for Public Policy Research)