Absenteeism at Work: How Much is it Costing Your Business?
If you run a business, you'll know that your employees' health can affect your profit. But how much do colds and the flu actually cost your business, and is there anything you can do you reduce sickness absence?
UK workers had an average of 9.1 days of sickness absence in 2013, costing UK businesses a total of £31 billion.
What's the impact of sickness on your business? If you run a small or medium sized business, sickness can be a real financial drain.
Businesses that employ between 100 and 250 staff face an average of 6.8 sick days each year for every employee. Although less than the national average, it still comes at an annual cost of £40,500 (figures from AXA PP).
However, it's not only the financial cost that can have an adverse effect on your business. Staff absence can also lower office morale and motivation. Staff having to cover the work of absent colleagues can mean an increase in workload, which can increase stress.
An increased workload could also result in more errors. If staff are having to juggle tasks or pick up jobs they're not familiar with, this could lead to mistakes, which could mean missed sales or customer complaints.
Having fewer staff at work will ultimately make your business less effective. Projects might not be completed on time, and consistency and teamwork will be lost.
What causes sickness absence?
You may think that colds and flu make up the vast majority of staff absence, but there are a range of different ailments and issues that could cause your employees to call in sick. Here are the main causes of absence in the UK in 2013 (figures from the Office of National Statistics):
Musculoskeletal problems - Things like back and neck pain caused the most sick days in 2013, with a total of 31 million days lost, many of them relatively long term absences
Minor illnesses - Colds, coughs and flu caused the second most days to be lost: 27 million. Although fewer total days were lost, there were more instances of these illnesses, making it the most common reason for sickness absence
Stress, anxiety and depression - These issues resulted in 15 million days of absence in 2013
Stress and mental illness is often cited as the top cause for long-term absence.
Long term sickness (more than four weeks) can also be caused by more serious illnesses, including acute medical conditions like cancer, heart attacks and strokes. Serious injuries can also result in long term absence, especially for those working in manual jobs.
Monitor absence
It's a good idea to measure and monitor absence to identify sickness trends. You may spot some individuals are having more sick days than most, or that there is a particular regular cause of sickness.
If you find that a high proportion of your workforce have had time off due to neck and back pain for example, you might need to look at investing in some ergonomic chairs. Although expensive, you'll ultimately save if it reduces absence and increases employee comfort!
Why not try using a Sickness Absence Recording Tool (SART); there's one available for free from the Health and Safety Executive on the Gov.UK website."
Hold back to work interviews
These are a great tool for monitoring absence and for deterring phoney sickness. The prospect of discussing their absence can be enough to put off potential skivers!
They can also identify underlying health issues so you can put measures in place to help employees avoid absence in the future.
A back to work interview should consist of welcoming the employee back to work, making sure they are suitably recovered, asking about the cause of their absence and updating them on what they may have missed while away.
Prevent future sickness absence
Although there is no way to eradicate sickness altogether, there are steps you can take to keep your sickness absence as low as possible.
Provide attendance incentives
Consider offering incentives that will discourage unnecessary absence. For example, you could offer employees annual cash rewards (a one off payment of £100 or £200 for example) for a 100% attendance record. Other incentives could include an extra day's holiday, or entry into a prize draw.
Allow flexible working
If you allow employees more flexibility with their working hours, for example by allowing them to work from home where possible, it can lead to a better home/work balance. This could reduce stress and cut the impact of family responsibility based absences, such as time off for looking after ill children.
Promote healthy living
One of the best things you can try to do is encourage your workforce to be healthier. A lot of organisations provide discounted gym membership to their employees, or have onsite facilities that they can use. This is a great way to promote a healthy lifestyle, which can in turn reduce stress and sickness.
If your workplace has a canteen, try to promote healthy eating by providing healthy options. You could offer fruit as snacks rather than crisps and chocolate. This may not be the most popular decision but could benefit you and your employees in the long run!
Another approach is to reduce the spread of illness when a member of staff is struck down by a cold or flu. When a group of people are cooped up together all day, it's inevitable that germs will get about, so why not supply free tissues and hand sanitizer to help stop the spread?
Are you covered for Sick Pay Insurance and Income Protection?
Although the measures mentioned may help reduce the level of sickness absence you see in your business, it's impossible to avoid it completely. You can guard against the potential financial impact of absence and help cover the cost by taking out insurance.
Sick Pay Insurance (SPI) for employers can pay out after only a week's absence, and could pay up to 80% of your employee's salary for up to one year so you don't have to.
Employers Income Protection policies are designed for longer term absences, and usually pay out after an employee has been absent for more than six months. To find the best business insurance policies around, take a look at our business insurance comparison.
