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Personnel Today

Sick leave costs UK business £39bn

by Personnel Today 18 Sep 2001
by Personnel Today 18 Sep 2001

Firms are spending more than 10 per cent of their staff budgets on sickness
absence and employee healthcare, claims Norwich Union Healthcare research.

It is costing UK business £39bn a year, if the findings from the 87
companies that took part in a survey are extended to all firms in the country.

Nigel Hawkins, research and development manager at Norwich Union Healthcare,
said HR needs to recognise the problem, look at measurement systems to ensure
the right data is being captured and ensure it is used to take appropriate
action.

"There may be a problem with short-term frequent absence due to
workplace bullying, or long-term absence because people are on NHS waiting
lists, in which case you could intervene with private healthcare," he
said.

Of the respondents, 95 per cent had formal policies for absence management,
but less than 4 per cent think they are effective.

Only one in 10 regularly assessed the direct cost to their organisation of
sick leave.

Personnel Today
Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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