Cost of Sickness Absence

Absence from work cost the United Kingdoms economy £13.2 billion as the average employee took almost seven (6.7) days off sick (source CBI, 2008 survey). The Chartered Institute of Personnel and Development (source CIPD’s 2009 Absence Management survey) estimate that sickness absence costs £666 per employee per year and averaged 6.4 days per employee; giving an average cost of just over £100/day At just £100/day this estimate probably under estimates all the extra unquantifiable costs such as Management time, loss of productivity, increased overtime or contractor levels, etc…. Even at this low estimate of £100/day, a quick calculation will show how the cost of absence can soon spirals upward. If we take the above figures and assume a company of 100 people then the cost at: 3% absence = 100 people x 8 days x £100/day = £80k per annum 4% absence = 100 people x 10 days x £100/day = £100k per annum 5% absence = 100 people x 13 days x £100/day = £130k per annum 6% absence = 100 people x 16 days x £100/day = £160k per annum With higher than average absence levels the financial justification for investing in an OH service is straightforward. In the above example, if you could reduce absence by just 1% then this would generate an annual saving of circa £20k. This saving would more than pay for Everwell’s services! It is recognised within the medical profession and beyond, that early assessment, diagnosis and medical intervention aids early return-to-work! So if you are going to do something do it now, not in two or three months time! Everwell Occupational Health is experienced in all aspects of Sickness Absence Management and we can help. Working together we can get your employees back to work quickly, productively and safely.

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