Sickness absence
The following data highlights some of the direct costs that are incurred due to sickness absence in the workplace:
• Absence costs UK employers £13 billion each year
• £3.9 billion of this is attributable to mental ill-health
• The average employer spends 10% of annual paybill managing consequences of absence
There are also the indirect costs to consider. Research into the retail sector has found that high levels of sickness absence have a negative impact on both customer satisfaction and productivity. These conclusions led supermarket chain Tesco to withhold sick pay for the first three days of absence in certain stores (in 2004) in a new approach to tackle high absence levels. However, this approach does not get to the root cause of the problem.
High performing organisations that are able to produce high volumes, or give consistently good customer service, usually have very high levels of attendance. How well your people are and how well the organisation is, directly impacts attendance levels.
Recent research from the Chartered Institute of Personnel and Development (CIPD) found that whilst musculoskeletal conditions are still the number one cause of lost time at work due to sickness, mental health problems are now the second biggest cause of absence, and rising. These types of health issues are indicative of a more demanding working environment as well as poor people management practices, underdeveloped reporting and management review processes.
Wellness Management enables employers to reduce absence and build the foundation for high performance by:
• enabling people to manage better their personal wellness (including mental well-being)
• improving levels of engagement and motivation so people are more inclined to come to work
Through The Wellness Management Index, The Work Foundation has found that high levels of attendance are linked to the way jobs are designed and how much people feel a sense of control in their lives in general (“locus of control”).