Absenteeism main reason for €793m bill, finds survey

BACK PAIN and stress are the biggest contributors to the estimated €793 million bill that employers face for absenteeism every…

BACK PAIN and stress are the biggest contributors to the estimated €793 million bill that employers face for absenteeism every year, according to a survey published yesterday.

Business lobby group the Small Firms' Association (SFA) said yesterday that absent workers resulted in the loss of 5.3 million days last year. Based on average earnings of €149 a day, the group said that the sick-pay bill for this totalled €793 million in 2007.

SFA assistant director Avine McNally said the estimate took no account of other direct costs, such as the need to replace absent staff with other workers or overtime payments. Nor, she said, did it take into account indirect costs such as the impact of productivity or the increased workload on staff that results from a colleague's absence.

An SFA survey of the problem found that back pain and stress were the most common causes of staff being unable to turn up for work.

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Cork had the highest absentee rate, with 11 days or 4.9 per cent, followed by the southeast with nine days or 3.9 per cent. Dublin and the northwest had the lowest rates with 3 per cent each.

Contact centres topped the list for industries with the highest absenteeism rates, with 14 days or 6.1 per cent, while metals and engineering were second on 11 days or 5.1 per cent. Wholesale distribution and transport had the lowest rate with 2.3 per cent.

The survey found that small businesses - employers with 50 or fewer staff - have lower absenteeism rates than large or medium-sized firms. Small companies lost an average of six days last year, while large firms lost 10 and medium firms lost eight. The national average was eight days. Ms McNally warned that there is an "increasing need for business to have an overall policy to deal with absenteeism.

"There are issues for both employers and employees. Employers should be aware that there are a wide range of factors that can influence employees' attendance patterns. "These include good communications, training and development, working conditions, job design and team working." She said promoting employee health and welfare and tackling issues such as stress should help in cutting absenteeism.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas