60% of HR professionals put absence management at the top of their agenda

CBI figures say absence costs nearly 500 per employee a year, at a cost of 12.2 billion to the UK economy. A survey of HR professionals by FirstAssist, the leading health and wellbeing provider, reveals 55% donít know how much absence is costing their business. Compounding this alarming figure, a shocking 1 in 5 donít even know the annual absence rates in their business. FirstAssist stresses the importance of managing and monitoring absence to rein in its escalating cost to business.



The cost of absence
According to the FirstAssist survey, HR professionals consider absence management the number one issue that they face today. Those surveyed reported absence rates of 4 to 5% per annum, which is slightly over the average of 4.0%, according to the Chartered Institute of Personnel and Development (CIPD). Against the 55% who donít know how much absence is costing their business, a further 12.5% admit that the costs are too high. Many confirmed that they are losing millions a year as a result of absence, but through the survey FirstAssist found a failure to invest in absence management solutions.

Managing Stress
When it comes to managing and monitoring stress in the workplace, FirstAssistís survey highlighted a lack of attention to this issue. Over a quarter of those surveyed do not monitor stress in their organisation, despite stress being an increasing cause of absence. Among the most common ways of managing stress were discussions with line managers, occupational health services, stress management covered in stress policies and stress management with sickness absence.

41% of companies claim to use return-to-work interviews to manage sickness absence. This supports research by the Confederation of British Industry (CBI) that return-to-work interviews are the most common way of controlling sickness absence. But businesses need to look at the whole picture and ensure they are getting to the route causes of absence, not just reacting after the event.

Creating a solution
Encouragingly, 66% of those surveyed provide Employee Assistance Programmes. This means that over one third are either using alternatives, or, failing that, nothing at all. The survey also shows that 14% of employers are thinking about providing something soon and that several provide both EAPs and a sickness absence programme.

Urging more HR professionals to consider the benefits that both EAPs and a Sickness Absence programme can offer when they are used together, Dr Les Smith, Group Medical Director for FirstAssist, comments, ìSickness absence management and EAPs work best together as part of a comprehensive HR programme. Sickness absence solutions promote an early return to health and work, with staff benefiting from access to health care and occupational health professionals as well as a wealth of rehabilitation resources to speed up recovery. Businesses gain a healthy and productive workforce as well as promoting a positive work/life balance.

ìAn effective EAP offers staff expert assistance such as counsellors and legal advice as and when they need it. Stress is a major cause of absence, but the causes of stress can come from both in and outside of the workplace. Employers can reduce stress by supporting staff through the pressures of life and work. This consequently means that businesses can promote a caring and responsible image, making them an employer of choice. In a competitive marketplace it is essential for HR professionals to be able to set themselves apart, making recruitment and retention easier. With absence being top of the agenda, HR professionals need to tackle all aspects of the issue ñ supporting staff both before and after ill-health.î

The top issues
According to the FirstAssist survey of HR professionals, absence is the number one issue out of the top five affecting businesses today. In addition, the majority of those surveyed think it will remain the top issue for the next three years.

The top five HR issues:
absence management
retention
stress management
recruitment
performance management.

The top five issues for the next three years:
absence management
retention
performance management
recruitment
change management.

Concludes Tim Ablett, Chief Executive of FirstAssist, ìThis survey produced some shocking results. Many HR professionals still seem to be working in the dark when it comes to stress in the workplace, sickness absence levels and its financial impact. This is alarming and we urge businesses to look at ways of getting to the root cause of staff absence by creating a healthy working culture for employees.

ìAbsence management looks set to be the big issue for the next three years, but many businesses are still failing to tackle it. Businesses should be taking a proactive approach to managing sickness absence by monitoring stress and offering a support structure for staff. And although stress management falls off the list of top five issues ëfor the next three yearsí, it is still a very real issue for HR professionals today and must be dealt with as part of overall absence management.

ìHR professionals need to work closely with the rest of the business to be able to tackle the issue of staff absence. It is fundamental that HR professionals monitor and manage absence to understand how it affects the business. Only through cost-effective absence management can businesses hope to create a healthy, and productive workforce.î