Cost of staff absence highlighted by report

Absence in finance jobs and other sectors cost employers an estimated £500 per head in 2007, according to new research conducted by Employment Review.

The study revealed that the median absence rate for an employee last year was 3.2 per cent of working time lost, equivalent to 7.4 days per employee.

It was also found that many employers did not adequately calculate the cost of absence, with many failing to account for the interim recruitment required to fill the missing employees' role.

According to Personnel Today, the figures revealed that only about one in five companies included the cost of those taking-up interim jobs, while only six per cent calculated the costs of factors such as reduced performance and service levels, as well as reduced output.

Regarding rates of absence, larger companies had a higher instance with a rate of 3.8 per cent, compared to smaller and medium-sized enterprises with a rate of 2.8 per cent.

According to figures quoted by the Health and Safety Executive, sickness absence cost employers £495 a year in direct costs.