Absenteeism is costing employers at least £662 per employee!

Taken From www.hi-mag.com

Employee sickness costs British companies more than £1,000 per employee each year, according to new research from an influential human resources services company.

The estimate by Hewitt Associates shows that absenteeism is costing employers at least £662 per employee. However, this rises by as much as 60% once indirect costs, such as lost productivity, overtime and recruitment, are included.

The majority of employers remain unaware of the true cost of absence, the consultant said in its first ever Hewitt Healthcare Fundamentals Survey. Less than two thirds of companies surveyed by Hewitt indicated that they properly record employee absenteeism.

The survey also showed that the biggest causes of absenteeism are flu, muscular injuries such as back pain and repetitive strain injury, and stress and depression. While more than half (56%) of respondents to Hewitt’s survey said that stress is an issue for their organisation, only a third provide stress management coaching for their managers.

James Kenrick, head of UK Corporate Healthcare Consulting at Hewitt Associates, said that poor employee health is an “enormous” problem for UK businesses, costing billions of pounds each year.

Stress is the “biggest threat to employee health in the UK”, Kenrick continued, and its impact on workforces is likely to worsen if there is a further downturn in the economy.

Kenrick said that reducing absenteeism is the “ultimate goal” for employers. He added: “To achieve this, they need to approach the problem from a total health management perspective. This means collecting quality data on the reasons behind absenteeism and developing a coordinated programme to encourage good health in their workforce.”

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