The True Cost of Staff Absence for UK Businesses

[Employment Law Services]

Did you know that on average, staff absence equates to 8 days per employee per year?

Did you know that staff absence equates to an average direct cost of £659 per employee per year which, coupled with the associated indirect costs of an additional £263 per employee per year results in businesses losing an average of £922 per employee due to staff absence.

So if a company employees 20 people, staff absence could be costing them as much as £18 440 every year!

If there was a way you could reduce these costs by up to 30% AND improve your company's operational effectiveness at the same time would you be interested?

Stop wasting YOUR money!! Cut your costs, not corners, prevent employment and HR issues and save your business time and money!

Do you know how much staff absence and poor performance is costing Your business?

Find out now.........For a FREE HR Consultation contact EmployEasily HR Services Ltd today on 0141 572 8427.

data source: CIPD Annual Survey Report 2008

 

[emmatoye]

Re: The Truce Cost of Staff Absence for UK Businesses

Interesting....I am actually doing a Case Study on Staff Absence within Tesco in my Open Uni course at the moment, and surprisingly absenteeism was costing them as an organisation betwen 30 and 40 million a year, they had to implement a reviewed HRM system and new policies in order to curb absenteeism from 5.8 percent to 4.6 percent. Its surprising to realise how much of an expense absenteeism is to the workforce.

 

[Fiona]

Wow. Do you know whether the CIPD have released the figures for 2010?

 

[Employment Law Services]

Wow. Do you know whether the CIPD have released the figures for 2010?

Latest figures from a recent CIPD survey on staff absence reveal the following:

Absence rate in the public sector is 9.6 days per employee per year compared with 6.6 days in the private sector with 6.9 days in manufacturing and production sectors and 8.3 days in the non-profit sector.

The average level of absence throughout the UK workforce is still almost two days less than the public sector, at 7.7 days per employee. The median cost of public-sector absence is £889 per employee per year compared to a median across all sectors of £600 per employee per year (manufacturing and production: £400, private sector services: £600, and non-profit: £600).

Stress related absences continue to grow and features in the top 5 reasons for staff absence.

Business who attempt to manage absence need to do so carefully as the implications of the Equality Act 2010 can have a massive impact on what can and can't be done.

If in doubt sek expert advice to prevent problems and protect your business.

 

[Employment Law Services]

Wow. Do you know whether the CIPD have released the figures for 2010?

Latest figures from a recent CIPD survey on staff absence reveal the following:

Absence rate in the public sector is 9.6 days per employee per year compared with 6.6 days in the private sector with 6.9 days in manufacturing and production sectors and 8.3 days in the non-profit sector.

The average level of absence throughout the UK workforce is still almost two days less than the public sector, at 7.7 days per employee. The median cost of public-sector absence is £889 per employee per year compared to a median across all sectors of £600 per employee per year (manufacturing and production: £400, private sector services: £600, and non-profit: £600).

Stress related absences continue to grow and features in the top 5 reasons for staff absence.

Business who attempt to manage absence need to do so carefully as the implications of the Equality Act 2010 can have a massive impact on what can and can't be done.

If in doubt seek expert advice to prevent problems and protect your business.

 

[Mike Lewis]

I wonder if anyone has done any research to determine why the figure is so much higher in the public sector than the private.

Mike

 

[Employment Law Services]

I wonder if anyone has done any research to determine why the figure is so much higher in the public sector than the private.

Mike

There's been plenty of research done over the years Mike, and as recently as late 2010, the Telegraph commissioned a survey after obtaining details of public sector staff absence under the Freedom of Information Act that revealed Local authority staff have the worst record for throwing sickies in Britain, taking almost twice as many days off as their private sector counterparts.

Extremely generous sick policies which give employees full pay for longer periods is at the root of the problem which, when combined with a 'soft' approach in managing staff absence, is what drives the much higher levels.

I recently wrote an article on Managing Staff Absence that has been published in the 2011 Scottish Chamber of Commerce Directory - Scottish Chambers Of Commerce National Directory- see page 101 - and have also posted about it on our blog several times.

A thorough review of existing policies is a good place to start when it comes to reducing staff absence, and something my company has, and continues to help many Employers get to grips with.

 

[Mike Lewis]

Interesting. Thanks.

Mike