More than a third (34%) of firms have seen absence rates improve over the last 12 months, echoing recent ONS Labour Market statistics showing sick days down by 47 million since 1993.
New research from Group Risk Development (GRiD), the trade body for the group risk industry, adds that only 16% said their absence rates have worsened.
Absence management is now a key component of business organisation for employers and 81% now actively record, monitor and manage absence.
More than two in five employers (44%) use return-to-work interviews, 36% have flexible working initiatives and 26% have disciplinary procedures in place for unacceptable absence.
Employers are also feeling more confident about working with fitnotes, with 40% saying they feel they can work with the advice given.
Katharine Moxham, spokesperson for Group Risk Development, said: "Absence in the UK workplace is now costing 56% of employers between 1% and 5% of their overall payroll.
"It's great to see that businesses are wising up to the importance of managing absence in the workplace and the benefits this brings to their business.
" The Government has clearly recognised the crucial role of the employer in helping employees return to work as quickly as possible and has proposed additional supprt to help them facilitate this through the new Health and Work Service due to be launched later this year.
"The Group Risk industry has many years' experience of vocational rehabilitation and employers with a group income protection policy in place are already well equipped to manage an employee's absence and provide the support they need to get back to work."
