New research from GRiD, the industry body for the group risk sector, has revealed that nearly one-third of employers are not tracking the impact of sickness absence, despite a steady rise in the number of companies documenting staff absences. According to the report, 82% of employers record sickness absences, a slight improvement from 2023’s figure of 80%. However, only 69% are monitoring the consequences of these absences, leaving 27% of businesses without data on the effects of employee sick days.
GRiD’s findings point to hybrid work as a key factor complicating the recording of sickness absence. Seventy-two per cent (72%) of employers agree that remote working can obscure the visibility of sickness absences, making them harder to track and manage.
“Hybrid working has certainly had an impact on employers’ ability to record sickness absence and its impact,” noted Katharine Moxham, spokesperson for GRiD. “However, nearly a fifth are still not keeping tabs on the number of days their employees have off work, and nearly 30% are not tracking the impact of sick days.”
Moxham emphasised the importance of collecting sickness data, as it allows employers to provide targeted support for various health concerns, such as mental health or musculoskeletal issues. Additionally, trends in sickness absences, such as a high number of absences in certain departments or locations, could be identified and addressed through effective interventions.
Among companies that do record the impact of sickness absences, the most common measures include calculating the cost of sick pay (49%), lost time (48%), and lost productivity (47%). Forty-six per cent (46%) of employers monitor indirect costs, such as time spent by colleagues covering for absent employees, while 36% track direct costs, including temporary staffing fees.
In light of these challenges, GRiD highlighted the role of employee benefits advisers in helping companies manage sickness absences. Advisers can assist employers in providing vocational rehabilitation and online health support and organising wellness programs, the report highlighted. These services, in addition to legal obligations requiring employers to inform staff about sick pay entitlements from day one, present opportunities for businesses to demonstrate their commitment to employee health and well-being.
Group risk benefits, such as employer-sponsored life assurance and income protection, also offer financial and emotional support to employees facing long-term illness or other personal challenges.
“There is a great deal of value in absence data for those employers who harness it effectively,” said Moxham. “Forewarned is forearmed when it comes to reducing absence.”
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