Staff absence costs UK companies up to 16% of their annual salary bill, yet half these costs can be avoided.
A report, commissioned by Unum from the Institute of Employment Studies, studying a cross-section of UK businesses, says that despite concern at rising costs of sickness absence, employers consistently underestimate this cost and few have strategies in place to manage absence effectively.
The report found sickness/ absence costs employers £1bn per year with stress and depression alone costing businesses 6.5 million working days a year. One in seven adults will be off work for at least six months due to sickness or injury.
According to the report, employers can reduce the impact for their company by up to 50% by managing absence with early intervention for sick staff and rehabilitation/return to work programmes.
Eugene McCormack, marketing director at Unum, said: 'Some employers in the UK have not realised that by not having income protection in place they are self-insuring the risk.'
