25/04/2002

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 7.1 days per employee or 3.1% of total working time, the lowest figures recorded since the survey began in 1987.

The annual absence and labour turnover survey shows the average cost of absence per employee rose to its highest level for five years. Projected across the whole workforce the total cost of absence to British business rose from £10.7 billion in 2000 to £11.8 billion in 2001.

Susan Anderson, CBI Director of Human Resources Policy, said: "Concerns about job security and better absence management led to a fall in days lost but firms say costs increased. They are under greater competitive pressures and, with less slack in their operations, providing cover is likely to mean extra spending on overtime or temps.

"This survey shows the key to reducing absence is senior management involvement. But, while companies can do more, business wants a quick and efficient health service to help people get back to work. It will be looking for results from the £3 billion extra tax burden imposed on it in last week's budget."

Since 1991, average absence has fallen by two days. Average absence levels in 2001 were 25% lower than those recorded ten years ago. But there were substantial differences between sectors, regions and types of job.

(MB)

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