Stress the leading cause of absence from work

Small businesses in Ireland lose on average €550m every year through absenteeism - and stress has replaced back pain as the leading cause of absence from work.

A report from the Small Firms Association also shows that workers in small companies are less likely to miss work through illness than their counterparts in larger businesses.

The study took place throughout Ireland and covered all sectors of business.

The national average for absenteeism is 3.4% or 7.8 working days. For larger firms this rises to 4.6% or 10.5 working days. For small firms the average falls to 2.4% or 5.5 working days.

In cash terms, absenteeism costs small businesses with sick pay schemes an estimated €550m per annum, based on average earnings of €110 per day / €28,600 per annum.

Assistant SFA director Patricia Callan said: "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 excess of €1bn.

“Stress has arisen as a key cause of absence from work, replacing back pain, as the most commonly cited problem on medical certs”, added Ms Callan.

“This is a particularly concerning development, as aside from absenteeism, stress can lead to a less productive workforce, faulty decision-making, and ultimately the possibility of legal action being taken against the company for negligence or constructive dismissal."

A survey by the International Labour Organisation (ILO) from 2000 shows that in the EU overall, 4% of the gross national product goes to treat mentally-ill employees, whilst in the UK, three in 10 employees suffer from mental health problems.

The World Federation for Mental Health has predicted that by 2020 the primary cause of lost working time will be stress.

In terms of short-term, uncertified absences, minor illnesses is the most common cause. Secondary causes for short-term absence are home responsibilities for women and other absences not due to genuine ill-health for men. “Some 40% of short-term absence occurs around the weekend, which raises red flags for many employers as to whether there are genuine reasons or not”, said Callan.

The survey also showed that most absenteeism occurred in the electronics industry, which averaged 10.5 days (4.61%), followed by the clothing and footwear sector at 10 days (4.23%). This may be explained by the repetitive nature of the work involved in these industries, the SFA said.

In marked contrast, small firms generally have more flexible jobs, multiskilling, less pigeon-holing and jobs are less boring. The industry with the least amount of absenteeism is the wholesale and distribution sector where there is a lot of interaction between people and services.

In term of regions, the Midlands and the North-East fair badly. This may be explained by the fact that many workers in these regions have longer travel to work times. The average in the midlands is 11 days (4.73%) and the north east is 10.5 days (4.54%).