Softworks Blog

Absence management is critical with 3.9 million days lost each year

Posted by Aoife ODriscoll on Fri, Mar 18, 2011

A report from the Small Firms Association reveals that small businesses in Ireland lose over €563 million per annum through absenteeism. In 2009, 3.9 million days were lost in small businesses across Ireland. According to the report, workers in small companies are less likely to miss work through illness than workers in medium or large firms.

Key findings from the report reveal:
· The national average level of absenteeism is 8 days
· Small firm average is 5 days
· Medium firm average is 8 days
· Large firm average is 10 days


Absenteeism costs small businesses with sick pay schemes €563 million per annum, based on average earnings of €143 per day. According to Avine McNally, Acting Director of the Small Firms Association: “This takes no account of other direct costs such as the requirement to replace absent staff with other workers or overtime payments, and the cost of medical referrals; or of the indirect costs such as the effect on productivity and quality, the increased work pressure on other colleagues, and the admin time in managing absence. The overall cost in reality could be in closer to €900m.”

Woman with cold XS

Back pain and stress are the biggest contributors to absenteeism. Manufacturing is the industry showing the highest level of absenteeism, followed by distribution, services and retail. The West and North West show the highest levels of absenteeism with an average 9.1 and 7.2 days respectively, while the Mid-West and South East report the lowest levels of absences.

ABSENTEEISM BY REGION

 Region

Average Absence Rate (%)

Dublin

2.3

Cork

3

West/North-west

4.2

Mid-west

1.8

South-east

2.2

North-east

3.3

Wicklow/Kildare/Midlands

2.8

Source: Small Firms Association 2009 Absenteeism Report

To learn how to effectively reduce absenteeism in your organisation today read our articles on how to reduce absenteeism in the workplace and its related costs and on employee illness.

Contact us to learn how our time sheet software can help you reduce absenteeism today.

Topics: Time & Attendance