Lies, damned lies and absence statistics
The annual CBI report on absence has been published amidst a ballyhoo of press comment on the number of people 'throwing sickies', which have no relation to ill health. The reality of the survey is that largest group of respondents estimated non-genuine sickness absence at less than 10% of total absence. Genuine sickness is still perceived as the main driver of absence and particularly long-term sickness, which accounts for a third of all days lost, but only 5% of the total episodes.
The headline figure for the cost of absence to British Industry remains impressive at a mind-boggling 11.6 billion pounds. But this figure still does not encompass the indirect cost which respondents estimate as doubling the direct cost. Nor is the cost of funding long term ill-health through income replacement insurance or increased pension contributions included in this calculation. We estimate that it would be no exaggeration to double the headline figure to make it even more eye catching!
The key issues in the report are simply repeats of the findings of previous years :
- Absence is higher in the Public Sector than the Private Sector
- Absence is greater for manual workers than non-manual workers
- Absence rates are higher in larger organisations than in smaller ones
There is nothing new here. However, in the midst of the figures and the debate they generate, it is clear that sickness absence and the management of employee health is gradually moving up the corporate agenda.
Senior Executives and HR Directors will be interested in the findings in the report relating to how absence is managed and the impact of health on productivity.
Where line managers are primarily responsible for absence management, which was the case for 70% of employers, the average number of days lost was some 12% higher than if HR are responsible. This result underlines our view that line managers are perhaps not best motivated or qualified for this difficult task. We believe employers should be looking to specialist support to carry out this work either from within their own HR resources or on an outsourced basis.
The market for absence management services is developing and a number of major healthcare players are now offering or developing specialist absence management services. Our view is that the cost of health risks in the workplace, whether it is insurance costs, or the costs of sickness absence, are prompting employers to have a hard look at how they can reduce these costs and at the same time introduce effective systems for managing these risks.
The survey also asked a question about the link between health and productivity - 95% of respondents have not examined this link although a number of employers thought that there is a strong relationship. This is clearly an area that will develop, as it is important to demonstrate to Finance Directors and CEO's that health, as a part of human performance, directly creates value for shareholders, customers and employees. The Institute for Health and Productivity Management is established in the States and these ideas are now gaining ground in Europe as the forum for debate on this subject continues to grow.
For further information, please contact Buck Healthcare:
Tel: +44 (0)118 955 7700
Fax: +44 (0)118 955 7701
Email: healthcare@buckconsultants.com
Web: bwhealthcare.co.uk
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