Employee absence costs rise

Employers are paying more attention to employee absence, says new research from Group Risk Development (Grid), a U.K. risk consultancy.

The majority (82%) of respondents proactively record, monitor and manage employee absence, according to the Group Risk Employer Research Study, which surveyed 500 organizations. The research found that 27% of respondents already publish their absence statistics in their annual report and accounts, while 48% are prepared to do so.

The research shows the average cost of employee absence (as a percentage of payroll) has increased from a fairly consistent rate of between 2 and 2.5% over the three-year period 2009-2011 to 3.1% in 2012. Those employers with absence costs in excess of 10% of payroll have more than doubled since 2011.

Reasons for absences

Acute medical conditions remained the main cause of absence (compared to last year’s results) in excess of 4 weeks at 21.9%, with stress-related mental ill health and musculoskeletal conditions following at 12.5% each and home/family issues at 7.4%.

The reduction in stress-related mental ill health and absence due to home/family issues since 2011 may be down due to a combination of effective rehabilitation and other support from providers during the early stages of absence and a reluctance to take time off for stress and home/family issues because of concerns about job security.

“It’s great that employers are starting to wise up to the importance of recording absence in the workplace and the benefits this brings to their business, particularly at a time when their positive efforts are mirrored by government,” says Katharine Moxham, spokesperson for Grid. “Even more exciting is that this could mark the start of a more open environment where ensuring the health and wellbeing of the workforce is seen as part and parcel of the employer’s duty of care.”