Tax & Accounting News

Cutting the cost of staff sickness

26/08/2009

As any business knows, employee absence is both costly and disruptive, with a total of 35million working days lost each year due to work-related ill health or injury in the workplace.

The average employee takes 8.1 days per year off work, at a cost of £850 to the employer – not to mention the disruption caused to other employees’ work as they cover for absent colleagues. But what can businesses do to try and reduce the impact on their profits?

Workplace morale is one issue, as it is important to bear in mind that unhappy staff are more likely to take time off. Financial incentives for low absence may be helpful in some cases, but equally important is creating a friendly environment where staff feel valued, and with flexible, family-friendly policies in place.

However, problems will still sometimes arise and all firms should have a clear policy on sickness procedures. Employers are entitled to request an independent medical assessment if an employee takes a substantial number of days off work, and may also consider requiring all prospective staff to undergo a medical examination, as well as checking attendance records with previous employers.

It may also be the case that particular problem areas can be identified concerning patterns of absence or particular departments or employees with below-average records, in which case further investigations can take place.

Long-term sickness must be handled sensitively and the employee’s permission is needed before a medical report is obtained. It may be useful to refer the employee to an occupational health specialist who can identify ways of helping an employee back to work and give an indication of how long the absence may last. Under the Disability Discrimination Act 1995, reasonable adjustments must be made to help the employee return to work.

Many of these adjustments can be made relatively easily but we recommend professional advice is sought before altering contracts or terms and conditions of employment.