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PwC: Absenteeism costs UK business £32bn a year
 
 According to research
from
PricewaterhouseCoopers,
UK workers have an
average (median) 10
days’ unscheduled
absence from their jobs
each year, 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.
  
   The study says that ,
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 the direct cost
of absence and does not
take into account
potential replacement
costs and lost
productivity.
  
   Richard Phelps, HR
consulting partner at
PwC, commented:
“Absenteeism is a
malaise for British
business. 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.
  
   “One might assume the
perceived US work
culture of long hours
and short holidays could
lead to higher stress
and sick rates. Our data
suggests otherwise, or
perhaps demonstrates
that strong employee
engagement and
commitment can override
workplace pressures. For
a variety of reasons,
there seems to be a
hunger among workers in
US and Asia to go the
extra mile.”
  
   PwC’s analysis
suggests more flexible
labour laws 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.
  
   “Keeping staff
engaged is arguably the
biggest part of the
battle, but you also
 
  
   
 
 
 out of their people and
avoid unnecessary
absence is a priority.”
  
   Banking and finance
is just behind
technology, with absence
averaging 7.8 days.
  
   “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”, added
Phelps.
  
   The research
highlights the impact
workplace culture can
have on absence. PwC’s
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.
  
   “While sometimes
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.
 
 Retailers take a robust
approach, with pay
docked almost
immediately. With retail
resignation rates
substantially higher
than other sectors, some
could argue this is
hindering morale. But
with a largely
unskilled, often
temporary staff base,
boosting engagement is
extremely difficult.”
  
   PwC’s research comes
at a time when the
Government is conducting
a major review of
sickness absence. 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.
  
   Phelps added:
“Short-term absence –
which we classify as
five days or less – can
all too often spiral
into long-term sick
leave, and similar
issues are often at
play. The root cause is
frequently a problem at
work, so until this is
treated you’re not going
to get the person
affected back in their
job.”
 
 need clear policies in
place to make it less
appealing for people to
take unwarranted leave,
while protecting those
people with genuine
illness,” added Phelps.
  
   “There’s also a
question of whether UK
employers should be
investing more in the
health of their
workforce. US firms tend
to take greater
responsibility for staff
well-being, whether
providing gyms in the
workplace or access to
counsellors.”
  
   Absence levels, and
how employers approach
the problem, vary
significantly for
different industries.
According to PwC,
technology companies
have the lowest absence
rates of any sector, at
7.6 days.
  
   Said Phelps:
“Technology firms are
often innovative in all
that they do, including
keeping employees
committed. Intellectual
capital is hugely
important for these
businesses, so making
sure they get the best
 
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