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BizHelp24 Edition No. 181
Tuesday 17th April
2007

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April 2007 - Small Business News

 

Are Sickies Damaging Your Business?

Absence increased in 2006 as workers took an average of seven days off sick, losing 175 million working days and costing the economy £13.4bn, according to the latest CBI / AXA survey.

The research revealed that long-term absence of 20 days or more accounts for 43 per cent of all working time lost, costing £5.8bn. In the public sector just over half of absence (52%) is long-term, while in the private sector this was over a third (38%).

The survey showed that companies who offer rehabilitation programmes and flexible working can help employees back to work and lose less time to absence.

Short-term absences are a key concern. The great majority of absences are genuine, but employers believe around 12% are suspect and involve staff "pulling a sickie". That means 21 million days were lost in 2006 at a cost to the economy £1.6bn.

Asked to cite the reasons behind fake illness claims, seventy per cent of employers felt staff are inclined to create unauthorised long weekends by taking Mondays or Fridays off sick, while 68% said there is a link between sickies and holidays, and 39% said absence is linked to special events, such as major sporting tournaments.

Looking at all absences, the 2006 research shows an increase on 2005, when the average employee took 6.6 days off sick, and the total number of days lost was 164 million. In 2006 absence cost £537 per employee and accounted for 3.3 per cent of working time.

The best performing organisations lost only 2.7 days per employee, while the worst lost twelve.

Susan Anderson, CBI Director of Human Resources Policy, said:

"We've all just enjoyed the four day Easter weekend, but some people think they have a right to use 'sickies' to take long weekends or extend holidays as they please. Unauthorised absence puts colleagues under unfair pressure, and loses employers and taxpayers well over a billion pounds.

"Everybody gets sick and employers understand that most absence is genuine. It is in nobody's interest if staff come to work when they are not well.

"People with long-term illnesses need to time to recover. But firms that keep in touch with employees and offer the support and flexible working that helps them return to work earlier have had real success in reducing long-term absence levels.”

The most important factor that influences absence is organisational size. In 2006 employers with fewer than 50 staff had just four days of absence per employee, but this doubled to eight days in organisations with over 5,000 employees. It may be that staff in smaller firms have a greater appreciation of the effect of absence on fellow employees. Also, senior management in smaller firms are more likely to take direct responsibility of absence management.

Colds, flu and other minor illness were identified by 99 per cent of respondents as one of the top five main causes of short-term sickness. Back pain was second most highly ranked.

Non-work related mental ill health - including stress, anxiety and depression - was marked as the most significant cause of long-term absence among non-manual staff, identified by 72 per cent of respondents. Among manual staff it was the second strongest factor (63%), but back pain was cited as the most significant (69%).

Although small businesses appear to deal with sickness better than large businesses; you should still see whether there is anything you can do to help reduce it. Stopping a few unauthorised absences and helping to bring genuinely sick people back to work quicker could save your business thousands of pounds a year.


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