The Cost of Absence at Work

As the new coalition government addresses the deficit,easier and produces fast results.
the impact of public sector sickness absence is likely4. Hold managers accountable for absence reduction
to be raised, and force organisations to deal withand make it a part of their performance review.
absences.5. Train managers to be assertive so that they can
The extent of this challenge has been illustrated by IRSdeal with the problem.
research into absence costs, which showed that6. Use 'return-to-work' interviews, supposedly the most
absence costs in the public sector last year were onefficient way of reducing absence.
average 685 pounds sterling per head compared toThe best approach, according to Shoesmith, for
455 pounds sterling per head in private sectorreducing absenteeism and monitoring presenteeism is
services. It also revealed that absence took up 3.8%a clear performance management approach, health
of working time last year for public sector employers,awareness programmes and good employee
compared to 2.6% in the private sector.engagement programmes.
These findings have supported the research of theThe Real Cost of Absence
Chartered Institute of Personnel Development (CIPD)Less than 37% of employers surveyed by the IRS
on the widening gap between the public and privatewere able to offer figures on the cost of absence in
sector's number of absent days per employee. This, ittheir organisation. Many of those that were able to
is said, reflects inefficient performance management,admitted that they don't consider many of the direct or
aided most likely by the fact that public sectorindirect effects on productivity caused by sickness
employees are part of large organisations that aren'tabsence.
able to focus on individual performance as effectively.91.4% of those who gave absence costs based them
The public sector, however, does have the defenseonly on the wages of the absent individuals, so they
that many of its roles include difficult, public-facing, anddid not include the fees of the temporary staff
sometimes dangerous jobs like nursing, policing andrequired to cover for the absent staff, nor the
teaching that induce high levels of stress. Furtherovertime costs for other staff covering for their
defenses are that, since the private sector is not undercolleagues. Even fewer included indirect costs such as
external inspection, there may be under-reporting ofmissed business opportunities or reduced customer
absence. Moreover, the public sector has a tendencyservice.
to pay occupational sick pay while the private sectorOverall, the CIPD claimed that absence costs the UK
only pays statutory sick pay, which may discourage17.3 billion pounds sterling. The IRS suggests the true
absences.figure is higher, if employers considered the other
Alternatively, some people claim that presenteeism is afactors induced by absence.
greater problem than absenteeism, with more staffHow the Private Sector Deals with Absence
likely to work when ill and incapable in the public sectorOne seemingly successful approach, pioneered by
than in the private sector. The recession is alsoTesco in 2004, made the first three days of unplanned
considered to be an encourager of this, with moreabsence in a three month period unpaid, unless "fair
employees potentially feeling the need to demonstrateand reasonable situations [had] occurred to prevent
their reliability to their companies. In turn the recessionattendance" and the employee had communicated this
could have the reverse effect, however, augmentingproperly. For more than five days of unplanned
levels of stress and so increasing the number ofabsence then the employee was invited to meet with
absences.Human Resources to discuss the problem and be
How To Manage Absenceoffered support. All employees underwent a
'return-to-work' interview with their manager and were
1. Encourage high attendance rather than mentioningadvised about their responsibilities, and the
high absence.departmental manager was prepared for any personal
2. Recognise attendance with non-monetary awards.issues that may have arisen for the employee.
3. Address frequent short-term absences first as it is