According to a recent survey by CIPD, after a small decrease reported last year, absence is back up to the levels observed in 2011 and 2010, at an average of 7.6 days per employee. Employers pay around £9 billion a year in sick pay and associated costs, plus the indirect costs of managing business while people are off sick. Sickness absences cost the economy around £15 billion a year, predominantly in lost output. So it really does pay to have happy shiny people working in your organisation.
We estimate that there are currently 140 million working days lost per year in GB due to sickness absence. This equates to 2.2 per cent of all working time, or 4.9 days for each worker each year. Employers also bear considerable administrative costs in relation to SSP, mainly around the requirement to maintain records for three years of all sickness absence lasting for four days or more.
Another key finding from the CIPD survey shows that the number of employers making changes to working patterns in a move to try and reduce long-term absence levels has increased by 20%. Stress is already one of the most common causes of long-term absence and two-fifths of organisations report that stress-related absence and reported mental health problems have increased over the past year. More than four-fifths of organisations report they are attempting to address long-term absence through making changes to working patterns or environment, a substantial increase on previous years.
If you need some guidance on absence issues don’t dilly dally contact HRREV today.