Absenteeism

By increasing the overall cost of labour, absenteeism accounts for part of the high prices of commodities and services. People may be absent from the workplace for a variety of reasons ranging from holidays or illness to attending football matches and so on. The word 'absenteeism' is used to describe absence when an employee is normally expected to attend for work and therefore excludes holidays and strikes. The main type of absenteeism is that attributed to incapacity (illness or injury), and this usually accounts for not less than three-quarters and often almost all industrial absenteeism. The attribution to incapacity may be supported by a medical certificate, depending upon local rules or social insurance regulations. Voluntary absenteeism rates are affected by working conditions and motivation. On an individual basis, emotional adjustment is a factor; those with problems, in or out of the workplace, tend to greater absence. There is also a variation with age and sex.

Absenteeism continues to significantly impact organizational productivity and economic performance. Recent data indicates that a small proportion of employees account for a substantial share of total absences. For instance, in the UK, the sickness absence rate increased to 2.6% in 2022, up from 2.2% in 2021, indicating a rising trend in lost working hours. In 2022, an estimated 185.6 million working days were lost due to sickness or injury. 

To illustrate the financial implications, consider an organization where each employee is expected to work 1,600 hours annually. If an employee takes 80 hours of paid leave due to absence (equivalent to 10 days per year), this results in a 5% reduction in productive output. Consequently, the organization may face a 5% increase in operational costs or a 5% decrease in profit per employee, assuming labor costs remain constant. In terms of economic impact, the UK recorded a sickness absence rate of 2.6% in 2022, translating to a significant number of lost working days. This rate has been gradually increasing, up from 1.8% in 2020. In 2022, the human health and social work activities sector experienced the highest absence rate at 4.2%, while sectors such as financial and insurance activities reported lower rates around 1.8%.

Absenteeism significantly impacts the UK economy, with recent analyses highlighting its escalating costs. In 2023, the Institute for Public Policy Research (IPPR) reported that employee sickness resulted in a "hidden cost" of £103 billion, marking a £30 billion increase since 2018. Notably, £25 billion of this rise was attributed to decreased productivity from employees working while unwell, while £5 billion was due to an uptick in sick days. Further emphasizing the economic burden, a report by Vitality estimated that workplace sickness cost the UK £138.3 billion over a recent 12-month period. Additionally, a study by FirstCare revealed that workplace absence leads to £18 billion in lost productivity annually, with projections suggesting this figure could rise to £26 billion by 2030 if current trends continue.

Focusing on work-related ill health and non-fatal injuries, the Health and Safety Executive reported that in the 2023/24 period, approximately 33.7 million working days were lost in Great Britain. Of these, 29.6 million days were attributed to work-related ill health, and 4.1 million days resulted from non-fatal workplace injuries.

Absenteeism rates vary across European countries, influenced by factors such as data collection methods, cultural norms, and labor policies. A 2019 survey indicated that 36% of French employees had been absent at least once in the preceding 12 months, with an average of 14.1 days of absence per employee. Over the past five years leading up to 2019, there was a 39% increase in the absenteeism rate, averaging an annual growth of 6.85%. Recent data indicates that German employees are taking more sick leave than ever before, with an average of 15.1 days in 2023, up from 11.1 days in 2021. The average absenteeism rate in Belgium is currently 7%. In 2023, short-term absences (less than one month) decreased from 3.45% in 2022 to 3.24%. However, this figure remains above the pre-2021 levels, which were below 3%. Long-term absenteeism (absences exceeding one year) reached a record high in 2023, accounting for 3.76% of working hours. Medium-term absenteeism (between one month and one year) also increased to 2.45%.