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WORKPLACE ABSENCE COSTING ECONOMY £17bn - CBI/PFIZER SURVEY

“Fit note” not yet delivering reduction in absence

The UK economy lost 190 million working days to absence last year, with each employee taking an average of 6.5 days off sick, according to the latest CBI/Pfizer Absence and Workplace Health Survey.

Despite the introduction of the new “fit note” in 2010, the rate of absence last year was marginally higher than in 2009, when employees averaged 6.4 sick days, the lowest rate since the survey began in 1987.

The 190 million days cost employers £17bn, including over £2.7bn from 30.4 million days of non-genuine sickness absence – so-called “sickies”. This does not include the other indirect costs of absence, like lower customer service and lost productivity.

This year’s survey is the first since the launch of the fit note – the new medical certificate focussed on what people can do rather than what they can’t, designed to aid returns to work and reduce absence costs.

Despite strong support for the initiative, employers have been disappointed by their experience so far: 66% of firms said that it had not yet helped their rehabilitation policy, and 71% were not confident that GPs were using the fit note differently from the old sick note.

Katja Hall, CBI Chief Policy Director, said:

“There’s been no let up in the cost of absence to the UK economy, which runs into billions of pounds a year. Although many organisations have been successful in bringing down levels of absence, the gap between the best and worst has widened.

“The substantial costs of absence to the economy put a premium on managing longer-term absence well. The fit note is a great initiative, which could play an important role in helping people back to work and stopping them slide into long-term absence. But employers are far from convinced that the scheme is working properly and don’t think GPs are getting the necessary training.

“The launch of the electronic fit note should be an ideal opportunity for the Department of Work and Pensions to extend the reach of its training programme and address GPs’ engagement. There can be no room for complacency in addressing the so-called sick note culture.”

On the cost of “sickies”, she added:

“Sadly, more days were lost to non-genuine absence than in 2009 and the cost of these bogus sick days is over £2.7bn a year. Sickies are unfair on colleagues and damage employers' competitiveness at a critical point in the recovery.”

Public sector absence

Employees in the public sector took more sick days than those in the private sector, an average of 8.1 days a year compared with 5.9 days. This represents an improvement on last year’s average of 8.3 days and a marked improvement since 2007’s average of 9 days.

Far more absence in the public sector is long-term than in the private sector, and reducing this will be key to reaching private sector levels. The CBI estimates that if the public sector could reach private sector absence levels, it would save the taxpayer around £5bn by 2015-16.

The cost of absence is much higher in the public sector – a median of £1040 compared with £710 in the private sector, or a difference of 46%.

Ms Hall said:

“The news that public sector absence levels have come down further is welcome, and could reflect better absence management by public sector employers. However, absence levels are still much higher than in the private sector, and it would be a shame if recent improvements were reversed once current public spending cuts went away.”

Across the sectors, the gap between the best and worst performing organisations widened in 2010, with the best performing quartile of the survey achieving an average of just 2.2 days per employee and the worst quartile losing an average of 10.7 days per employee.

Long-term absence

Long-term absence accounts for nearly a third (32%) of all time lost to sickness. In the public sector, the proportion is even higher, with long-term health problems causing nearly half (47%) of days lost, whereas in the private sector long-term absence accounts for 27%.

Mental health issues are the single biggest cause of long-term absence, followed by musculoskeletal disorders, back pain and cancer treatment.

Dr Berkeley Phillips, UK Medical Director, Pfizer Ltd, said:

“Long-term absence is a concern, and costs associated with longer periods of ill-health are especially high in the public sector. Many people with long term health problems want to work and contribute to society, but the longer employees remain off work, the harder reintegration into the workplace becomes. This report highlights the importance of early intervention and proactive management strategies to support employees and employers in tackling the factors contributing to long-term absence and supporting a return to work.

“The economic consequences of long-term absence stretch beyond the individual workplace to deliver a significant impact on society. By drawing together data on both absence trends and management strategies, this report highlights how both employers and policy makers can deliver significant benefits to maximise wellness and minimise illness for the UK workforce.”

Notes to Editors:

1. The annual absence and labour turnover survey was first conducted in 1987. This year's survey was conducted between January and February 2011. Respondents were asked to report on absence and labour turnover for 2010. Responses were received from 223 private sector companies and public sector organisations who together employ more than 1 million employees - equivalent to 4.1 per cent of the UK workforce.

2. Two CBI/Pfizer Workplace health and absence breakfast events are being held to launch the survey. The first is being held on Thursday 12 May at Accenture, Kingsley Hall in Manchester and the second on Tuesday 24 May at Accenture, 1 Plantation Place in London.

Media wishing to attend should visit www.cbi.org.uk/workplacehealth

About the CBI:
The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.

About Pfizer:
Pfizer: Working Together for a Healthier World™. At Pfizer, we apply science and our global resources to improve health and well-being at every stage of life. We strive to set the standard for quality, safety and value in the discovery, development and manufacturing of medicines for people and animals. Our diversified global health care portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and many of the world’s best-known consumer products. Every day, Pfizer colleagues work to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. Consistent with our responsibility as the world’s leading biopharmaceutical company, we also collaborate with health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world. For more than 150 years, Pfizer has worked to make a difference for all who rely on us. In the UK, Pfizer has its business headquarters in Surrey and is the major supplier of medicines to the NHS. To learn more about our commitments, please visit us at www.pfizer.co.uk


Media Contacts:

CBI Press Office on 020 7395 8087 / 8239, out of hours pager on 07623 977854, or email: press.office@cbi.org.uk.

Pfizer Press Office on 0845 300 8033

 

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