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RELEASE

ABSENCE BILL OF £10 BILLION FOR BUSINESS IN 1998 - CBI SURVEY

Absence from work cost British business £10.2 billion in 1998, an average cost of £426 per worker, according to a survey by the Confederation of British Industry released today (Friday).


The CBI's latest absence survey 'Focus on Absence', which is sponsored by BUPA, estimates that 200 million days were lost through sickness absence in 1998, an average of 8.5 days per employee. This represents a loss of 3.7 per cent of working time. Both the number of days lost and the percentage of working time lost remain broadly the same as in 1997.

Manual workers take more time off than non-manual workers, with an average of 9.4 days lost, compared to 7.6 days for non-manual workers. But absence among manual workers is declining with days lost falling from 10.8 days in 1997 to 9.4 days in 1998. At the same time non-manual workers absence rates are rising, from 6.8 days in 1997 to 7.6 days in 1998.

Public sector workers on average take an extra 1.7 days a year compared with their counterparts in the private sector. On average public sector workers take off 9.2 days a year, whereas private sector workers take off an average of 7.5 working days a year. However, the survey also shows that the bigger the organisation the higher the levels of absence, which could account for the higher absence levels in the public sector.

John Cridland, CBI's Human Resources Policy Director, said: "Absence remains a significant cost to business, and employers need to benchmark themselves against others in their sector or region to ensure they are not facing unnecessarily high costs. Our survey shows that absence is lowest where senior managers are responsible for managing the levels. While minor illnesses remain the major cause of absence, workplace stress, family responsibilities and personal problems are also significant causes of time off work. Flexible working patterns and policies to deal with stress can help employers reduce absence problems and cut costs. "

The survey shows that minor illness is the biggest cause of absence for manual and non-manual workers, with serious illness and home and family responsibilities also important for manual workers. For non-manual workers workplace stress was felt to be the second highest contributor to absence, although this was well below minor illness. This is in line with the figures for 1996(1) and reflects employers' awareness of the impact of stress on non-manual workers.

Absence levels are lower in organisations where senior managers manage absence and show a commitment to addressing problems. Return-to-work interviews are considered to be the most important way to reduce unnecessary absence for both manual and non-manual employees. Occupational health services also play a crucial role in reducing absence especially amongst manual workers. For non-manual staff pre-recruitment medicals were considered the next best policy to return-to-work interviews.

Dr David Costain, BUPA's Deputy Group Medical Director, said: "Employers need to have health policies in place to control absence. The first step is to assess the levels of absence and the causes. The health and happiness of an employee is clearly important to an employer and effective absence management practices ultimately benefit both employee and employer. Such policies should also incorporate measures for managing workplace stress."

On a regional basis the highest levels of absence for manual workers were reported in Yorkshire and Humber (13 days), the North West (12 days) and Greater London (12 days). The South, Northern Ireland and South Eastern regions had the lowest levels of manual employee absence.

For non-manual workers, the North West had the highest absence levels (10 days), followed by the West Midlands (9 days) and Yorkshire and Humber (9 days). While organisations operating in the South Eastern, Southern and more than one region reported the lowest levels of absence.

The full report is available to the public and can be ordered on the web or from CBI Publications on 0171 395 8071 at £15.00 (CBI members), or £25.00 (Non-CBI members)


29 July, 1999

Notes to Editors:

(1) There is no directly comparable workplace stress figure to the 1998 survey. In the 1998 survey workplace stress was broken down into two areas; pressures from managers and high workload.
  • The survey was conducted during March and April 1999, and asked respondents, to report on absence for 1998. Replies were received from 537 public and private sector organisations.
  • A regional breakdown for manual and non-manual workers is attached.
  • Press copies of the report are available from the CBI Press Office on 0171 395 8239.
  • For further press enquiries please contact: Melissa Saliah, CBI Press Office on 0171 395 8093 or Alan Rustad, BUPA Corporate Communications on 0171 656 2086.

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