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BizHelp24 Edition No. 156
Wednesday 17th May 2006

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May 2006 - Small Business News

 

Could You do More to Prevent Workplace Absence?

As a business owner, you are probably aware of the problems caused by employees being absent; from sick pay costs to the hassle and expense of covering their workload.

The cost of staff absence in the UK rose to £13 billion in 2005, despite the number of absent days falling from 168 million to 164 million; according to the annual CBI / AXA Insurance Absence Survey. The results suggest that there is still a ‘culture of absenteeism’ in many businesses; with 13% of the working days lost to sickness considered to be non-genuine (I.e.: Staff ‘pulling sickies’) by employers.

Nearly three quarters (73%) of employers believed that unauthorised absence could be linked to Mondays and Fridays and almost two-thirds (64%) thought staff may be taking unauthorised extensions to holidays. Forty per cent considered special events, like the forthcoming World Cup, were a likely cause of unwarranted absence.

This means that absence costs on average £531 per employee per year; potentially causing large damage to your cashflow as well as business disruption. The good news however, is that small businesses have considerably lower absence levels than large businesses; but the costs are still running into many millions of pounds a year.

CBI Deputy Director-General, John Cridland said: “Hard work by companies to manage absence is clearly paying off, with overall absence coming down. But so much more can still be done.

“Employers live in the real world and recognise that the majority of absence is due to genuine, minor illnesses. Nobody wants staff to drag themselves into work when they are genuinely ill. But there is clearly concern that a culture of absenteeism still exists in some workplaces and this must change.”

Are you doing everything you can to prevent staff taking ‘sickies’; and are you able to act quickly to help prevent and minimize long term sickness? There are simple policies you can look into to help limit absence, the three most effective in the survey were:

  • Waiting a small period of days before starting sick pay, ensuring that employees considering a ‘sickie’ are put off by the lack of pay.
     
  • Offering rewards for good attendance.
     
  • Providing early access to medical care through private medical insurance. Thereby helping to minimize long term illness and in some cases prevent it altogether.

Remember that the happier your employees are in their job, the less likely they are to take unauthorised absences; so spending a little time to ensure your staff are satisfied in their work could save you money in the long term.

A range of articles on employment and employee issues are available in our Employment and Personal Development Portal.

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BizHelp24 – UK business and finance information, news, help and services for small businesses BizHelp24 is a UK business and finance resource providing Small Business Help, Start up Information, news and services; for individuals and Sole Traders. Comprehensively covering a wide range of key business, finance, and service topics. Employment and personal information includes Work Times and Break Entitlement, Body Language, employee Holiday Entitlement and Employment Contracts. Credit Policy information includes Letter of Credit, useful Credit Notes, Business Loans. and Cash Flow Control. Other information areas include Bankruptcy, Homeworking, Business Failure, Company House and Company Names,

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