Absenteeism cost businesses €112m last year

ABSENTEEISM cost Irish businesses more than €112m last year, according to the Small Firms Association.

Workers in electronic firms were absent for an average of 11.5 days last year, compared to the national average of 7.8 days. Those employed in clothing and footwear firms also had a higher rate of absenteeism, at 10.5 days.

The survey by the Small Firms Association also showed different levels of absenteeism between regions. Companies in the midlands had absenteeism rates of 12 days per worker and in the north-east it was 11.5 days.

The Small Firms Association said the high level of absenteeism in these regions may be due to the long commuting distance involved.

"If you have to travel a long distance to work, then it becomes a chore and you're more likely to call in sick.

"But we're also seeing a lot of workers not bothering to turn up on Monday mornings and after bank holidays. "That's a symptom of a tight labour market because workers think they will get'sure, I'll get a job elsewhere if they have to," said the association's assistant director Patricia Callan.

Small companies with less than 50 employees suffered less from absenteeism than larger companies. The average rate of absenteeism in small companies was 5.9 days compared to 10.5 in larger companies.

"There seem to be two main reasons for this. Workers in smaller companies know their colleagues will be unhappy about carrying the burden if they're absent.

"And they are often much happier to work in small companies because the work is more attractive and they have more responsibility. In larger companies, they can be pigeon-holed into one position," said Ms Callan.

The survey's definition of absenteeism included all days lost as a result of sickness and non-statutory leave such as paternity leave and exam leave. This suggests that many of the workers' days off may be taken for legitimate reasons. "We didn't get a breakdown of why the days were lost in the survey. But it's very important for companies to implement a proper absenteeism policy.

"Otherwise, it becomes almost a customary practice and it can cost companies a lot of money," said Ms Callan.

Many European and American companies operate incentive schemes to reduce absenteeism rates. One large hardware company introduced a lottery for employees with no absenteeism for one month. There were prizes in each department of televisions and bicycles and absenteeism fell by 75%.

But the Small Firms Association said only large companies could afford such schemes. "You shouldn't have to be rewarded for working. Some companies have introduced a self-certifying form, where an employee has to explain the reasons for their absence.

"That has proved successful and it's much better than someone just saying, 'sorry I'm late'," said Ms Callan.