WORKPLACE ABSENCE COSTS UK £12.2BN - NEW SURVEY
Up to 23 million working days lost in 2004 to staff "pulling sickies"
Workplace absence cost the UK economy £12.2bn in 2004 - with concern that £1.7bn of that cost is due to staff "pulling sickies" rather than absence resulting from genuine ill-health - according to a new survey of businesses.
The latest annual CBI-AXA Absence Survey, published today (Wednesday), shows that absence cost £495 per employee in 2004 compared with £475 per employee in last year's survey.
The overall cost of £12.2bn has increased from £11.6bn in the previous survey. These figures represent the cost of covering salaries for absent staff, the resulting overtime and temporary cover, and lost service or production time.
The survey of over 500 organisations also shows that 6.8 working days were lost per employee in 2004.
The total number of days lost to absence across the UK economy fell by 4.5 per cent to 168 million in 2004, from 176 million in 2003. That brings total absence back in line with the level seen in 2002 (166 million days). The CBI believes rising labour costs and growth in average earnings are the reasons why the total cost of absence has increased despite the lower absence level.
The survey also reveals that organisations fear as many as 23 million - or 14 per cent - of the 168 million working days lost to absence last year were a result of unwarranted absence, or staff "pulling sickies". This represents a cost of £1.7bn, broadly the same figure recorded in the previous survey.
Three-quarters of respondents suspect that some employees take illegitimate long weekends by calling in sick on Fridays or Mondays, with 74 per cent of organisations saying there was a link between patterns of absence and the unauthorised extension of the weekend. Two-thirds said there was an increase in absence around Bank Holidays.
Genuine minor illness - such as flu - was the main cause of absence across the economy in 2004. The second most significant cause of absence was stress among non-manual workers, and recurring illness (for example back pain) among manual workers.
John Cridland, CBI Deputy Director-General, said: "Employers understand that staff are not invincible. They accept that the majority of absence is due to genuine minor illness and nobody is saying genuinely ill staff should drag themselves to work. But let's be honest about this - there are some employees out there who will gladly award themselves a day off when they are in good health at the expense of their employers and hard working colleagues.
"With summer almost upon us, employers may well be concerned about staff granting themselves days off that they are not entitled to. Organisations suspect that staff 'pulling sickies' cost the UK economy £1.7bn last year alone, a bill we simply cannot afford to pay in today's fiercely competitive global market."
The survey, which has been conducted every year since 1987, also shows manufacturing firms reported higher absence levels than service sector companies in 2004 - 7 days lost per employee compared with 6 days lost.
Manual workers have significantly higher absence rates than non-manual employees. The average for manual workers was 8.4 per employee in 2004, compared with six days per employee for non-manual staff.
Absence varied greatly across the UK. The South West lost the most working days to absence (8 days per employee), followed by the North West (7.9 days), the West Midlands and Northern England (both 7.5 days), Yorkshire and the Humber (7.4) and the South East (7.3). Average absence levels were recorded in Scotland (7), the East Midlands (6.9), Wales the East of England (both 6.6) and Southern England (6.5). The lowest absence levels were recorded in Northern Ireland (5.9) and Greater London (5.6). The survey tends not to show lasting links between absence and region.
Larger organisations reported higher absence levels than smaller ones. Those employing over 5,000 staff averaged 8.3 days per employee, while companies with less than 50 employees averaged 4.5 days. The CBI believes smaller firms have lower absence rates because it is dealt with by senior management. When senior managers are put in charge of absence, 2.3 fewer days are lost per employee compared with absence dealt with by line managers.
Eighty-seven per cent of organisations are taking action to reduce absence and return-to-work interviews are the most common absence management policy. Two-thirds of respondents have a stress management policy and 60 per cent have rehabilitation schemes in place.
John Cridland said: "The vast majority of employers are taking action to reduce unnecessary absence and to minimise its enormous cost. Companies and organisations are increasingly employing new and innovative methods to manage absence and to help people get back to work quickly. But business also needs efficient health services so staff can make swift recoveries. Employers will be looking to the newly elected government to deliver on its promises for NHS reform."
The survey also shows that while long-term absence accounted for just six per cent of all absence cases in 2004, it was responsible for 34 per cent of total time lost through absence.
Dudley Lusted, AXA Head of Corporate Healthcare Development, said: "Short-term absence caused by genuine illness isn’t a problem for those employers who run their business well and create a positive workplace environment where employees are encouraged to give it their best shot. Long-term absence on the other hand is better tackled by early intervention and active case management. Indeed, employers who provide their people with early access to medical care and rehabilitation have lower levels of absence."
As reported by the CBI earlier this week, public sector absence outstripped private sector absence by almost three days per employee in 2004. Absence averaged 9.1 days per public sector employee and 6.4 days per private sector employee. Public sector absence accounted for 68 million working days lost to absence last year and cost the UK economy £4.1bn. Though the public sector represents only 30 per cent of the UK workforce, it accounts for 40 per cent of the total number of working days lost to absence. If the public sector could reduce its absence rate to the private sector average, absence would fall by over 20 million days and save the UK taxpayer £1.2bn.
10 May, 2005
Notes to Editors:
The annual absence and labour turnover survey has been conducted since 1987. This year's survey was conducted between January 2005 and February 2005. Respondents were asked to report on absence and labour turnover for 2004. 528 replies were received. Organisations responding employ a total of 1.4 million employees, equivalent to six per cent of the UK workforce.
The CBI-AXA Conference on Absence was held yesterday and was addressed by representatives from Royal Mail, the Health & Safety Executive and the TUC. Details of the conference are attached.
The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce.
No other UK organisation represents as many major employers, small and medium-size firms or companies in the manufacturing or service sectors.
Attachments:
Media Contact:
Owen Bassett, CBI Press Office, 020 7395 8087. Out of hours pager, 076 2397 7854.
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