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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
 
  
   
 
 businesses, so making
sure they get the best
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
 
 you also 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