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15/10/2001
UK employers hit by hidden costs of sickness absence
Absence from work is costing UK companies up to 16 per cent of their annual salary bill - yet half of these costs could be avoided.
This is the key finding of a new report commissioned by Unum, the UK’s leading provider of income protection. The report, entitled ‘Towards a better understanding of your sickness absence costs’, is the culmination of a year long survey by the Institute of Employment Studies of a cross-section of UK businesses.
It highlighted that, despite expressing concern at the rising cost of sickness absence, employers consistently underestimate the cost to their business, and few have strategies in place to quantify and manage sickness absence effectively.
The report also draws together new and existing findings on the true cost of sickness absence, including:
The report indicated that employers can reduce the financial impact to their business by up to half through effective management of absence, early intervention when staff are off sick and rehabilitation/return to work programmes.
Another solution is Group Income Protection insurance, which pays out a proportion of salary to employees if they are unable to work because of illness or injury - removing the increasing burden of Statutory Sick Pay on employers.
Typically, such a scheme costs just one per cent of payroll. Some schemes offer rehabilitation programmes and invaluable support to both the individual and the employer.
Eugene McCormack, Director of Marketing at Unum, said: “Organisations that continue to ignore their absence costs are operating inefficiently. Taking steps to reduce these costs by investing in Group Income Protection can help to manage costs and keep them to a minimum.”
The findings will be presented on Tuesday October 16 at a half-day seminar in Westminster attended by leading figures from the business, government, and voluntary sectors. (MB)
This is the key finding of a new report commissioned by Unum, the UK’s leading provider of income protection. The report, entitled ‘Towards a better understanding of your sickness absence costs’, is the culmination of a year long survey by the Institute of Employment Studies of a cross-section of UK businesses.
It highlighted that, despite expressing concern at the rising cost of sickness absence, employers consistently underestimate the cost to their business, and few have strategies in place to quantify and manage sickness absence effectively.
The report also draws together new and existing findings on the true cost of sickness absence, including:
- Sickness and absence cost UK employers £11 billion each year (Confederation of British Industry)
- Each year, 6.5 million working days are lost through work-related stress or depression (Health & Safety Executive)
- One in seven adults will be off work for at least six months because of illness or injury
- Sickness absence can cost individual employers up to 16 per cent of payroll each year (Unum / Institute of Employment Studies)
The report indicated that employers can reduce the financial impact to their business by up to half through effective management of absence, early intervention when staff are off sick and rehabilitation/return to work programmes.
Another solution is Group Income Protection insurance, which pays out a proportion of salary to employees if they are unable to work because of illness or injury - removing the increasing burden of Statutory Sick Pay on employers.
Typically, such a scheme costs just one per cent of payroll. Some schemes offer rehabilitation programmes and invaluable support to both the individual and the employer.
Eugene McCormack, Director of Marketing at Unum, said: “Organisations that continue to ignore their absence costs are operating inefficiently. Taking steps to reduce these costs by investing in Group Income Protection can help to manage costs and keep them to a minimum.”
The findings will be presented on Tuesday October 16 at a half-day seminar in Westminster attended by leading figures from the business, government, and voluntary sectors. (MB)
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20 May 2002
Sickness absence costs companies over £280m
New research suggests that medium-sized businesses in the construction sector could be losing £280 million a year due to sickness absence – equivalent to over 7% of their annual salary bill.
Sickness absence costs companies over £280m
New research suggests that medium-sized businesses in the construction sector could be losing £280 million a year due to sickness absence – equivalent to over 7% of their annual salary bill.
29 July 2002
Stress is a leading cause of long-term absence
Employees take an average of 10 days off sick each year, according to Employee Absence 2002, published today by the Chartered Institute of Personnel and Development (CIPD). While Northern Ireland remains at the bottom of the sick-day league, the latest survey shows a slight increase, from the reported 9.3 working days lost, in last year’s study.
Stress is a leading cause of long-term absence
Employees take an average of 10 days off sick each year, according to Employee Absence 2002, published today by the Chartered Institute of Personnel and Development (CIPD). While Northern Ireland remains at the bottom of the sick-day league, the latest survey shows a slight increase, from the reported 9.3 working days lost, in last year’s study.
03 December 2001
“Sign Off” culture rampant among UK doctors
The Confederation of British Industry (CBI) has accused the UK healthcare system of unnecessarily extending sickness absence by workers. The CBI claims that a "sign-off" culture among UK doctors has boosted the cost of sickness absence borne by employers to £23 billion a year, and around 200 million lost working days a year.
“Sign Off” culture rampant among UK doctors
The Confederation of British Industry (CBI) has accused the UK healthcare system of unnecessarily extending sickness absence by workers. The CBI claims that a "sign-off" culture among UK doctors has boosted the cost of sickness absence borne by employers to £23 billion a year, and around 200 million lost working days a year.
06 July 2001
SURVEY FINDS ABSENTEEISM UNDERESTIMATED
A NEW survey from the Chartered Institute of Personnel and Development (CIPD) has found that most employers overestimate their ability to combat the problem of staff absenteeism.
SURVEY FINDS ABSENTEEISM UNDERESTIMATED
A NEW survey from the Chartered Institute of Personnel and Development (CIPD) has found that most employers overestimate their ability to combat the problem of staff absenteeism.
25 April 2002
Absenteeism drops to 14-year low as costs hit £1bn
Workplace absence has fallen to its lowest level for at least 14 years a new survey published by the CBI and PPP healthcare has revealed. However the annual cost to employers has risen by more than a billion pounds. The number of working days lost fell by 16 million, from 192 million in 2000 to 176 million in 2001. That is 7.
Absenteeism drops to 14-year low as costs hit £1bn
Workplace absence has fallen to its lowest level for at least 14 years a new survey published by the CBI and PPP healthcare has revealed. However the annual cost to employers has risen by more than a billion pounds. The number of working days lost fell by 16 million, from 192 million in 2000 to 176 million in 2001. That is 7.
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