The People Bulletin

UK workers are an unhealthy (some have suggested workshy) lot and take an average (median) 10 days unscheduled absence from their jobs each year. This is around twice that of their counterparts in the US (5.5 days) and Asia-Pacific (4.5 days), but on a par with Western Europe (9.7 days). Sickness accounts for around 80% of absence, which also covers jury service and compassionate leave. These latest figures have been revealed by PwC’s Saratoga team and are based on analysis of 2000 organisations.

With the average UK salary around £25,000, absenteeism is costing British business approximately £32bn per annum, far more than previous studies have suggested. This figure is also likely to be conservative, as it reflects direct cost of absence and does not take into account potential replacement costs and lost productivity.

Richard Phelps, HR consulting partner at PwC, observes: “With sickness accounting for the lion’s share of absence, the question for employers is what can be done to improve health, morale and motivation. The line between ‘sickie’ and ‘sickness’ can be blurred, with disenchantment at work sometimes exacerbating medical conditions or preventing a speedy return.”

Greater engagement in US and Asia

The research also suggests that strong employee engagement and commitment can override workplace pressures. For many reasons there seems to be a greater hunger among workers in the US and Asia to go that extra mile for their employers and the work culture of long hours and short holidays does not result in higher stress and sickness levels. The more flexible labour laws for employers in the US and Asia could also play a part, with a sense among workers that there is more at stake if they are not committed.

Technology and banking sectors do better

The absence levels varied significantly between the industry sectors with technology companies averaging 7.6 days. Phelps put this down to the innovative nature of the sector. “Intellectual capital is hugely important for these businesses, so making sure they get the best out of their people and avoid unnecessary absence is a priority”, he says.  Banking and finance did almost as well, with absence averaging 7.8 days – something he sees as down for the  result-orientated culture. “People who work in financial services tend to be highly motivated and for some roles even a day’s unexpected leave can have a significant impact on results and reward. There simply isn’t the culture for absenteeism - come rain or shine, people get into work”, he says.

Public and retail sectors suffer the most

The data shows the public sector has the highest absence levels, averaging 12.2 days. Absenteeism is also a problem for retail and leisure, at 11.5 days. Phelps observes that absence from work is unavoidable; “once people see colleagues frequently taking unscheduled leave, absence becomes less of a dilemma and more of a right. Breaking the cycle can be hard” he says. He goes on to make the point that retailers take a robust approach, with pay docked almost immediately. And with retail resignation rates substantially higher than other sectors, it could be argued that this is hindering morale. “But with a largely unskilled, often temporary staff base, boosting engagement is extremely difficult”, he concludes.

Government shake-up

The research comes at a time when the government is conducting a major review of sickness absence, with a report expected later this year.[1] The independent review is focusing on combating long-term absence, which makes up 40% of the UK’s sickness rate according to PwC’s figures, and for which the State and the taxpayer stump up most of the costs.

 See also: Victoria Cook’s ’10 top tips for managing sickness absence’ in The People Bulletin, 16 June 2010. 

[1]  www.dwp.gov.uk/newsroom/press-releases/2011/feb-2011/dwp022-11.shtml