A recent study reveals SMEs are anxious about the economic effects of staff absences.
- Research by Mind and the Federation of Small Businesses finds positive staff relations in small firms.
- SMEs maintain lower sickness absence rates than average, yet struggle with absence management.
- 68% of SMEs fear revenue and productivity losses due to prolonged staff absence.
- Only 30% of SMEs have strategies in place to mitigate employee sickness absence.
In a comprehensive study conducted by Mind and the Federation of Small Businesses, it was observed that smaller firms often exhibit strong relationships with their staff, reflecting in a lower-than-average sickness absence rate. However, the research highlights a significant gap in preparedness to manage such absences effectively among SMEs. The ability of these businesses to mitigate the impact of employee absence is further challenged by the pivotal role each employee plays within these smaller teams.
Further insights from AXA PPP healthcare illuminate that a staggering 68% of small and medium-sized enterprises express anxiety over potential revenue and productivity dips should an employee require a leave of absence exceeding four weeks. Despite these concerns, a mere three out of ten business owners report having developed any form of strategic approach to manage or minimise the impact of sickness-related absences within their operations.
An additional layer of the issue stems from the reluctance among business owners to invest in necessary systems or employee benefits aimed at reducing sickness absence and enhancing absence management practices. Glen Parkinson, SME Director at AXA PPP healthcare, underscores the severe risk posed to productivity and revenue due to employee absence, urging SME owners to adopt structured approaches in handling such challenges.
Echoing this sentiment, Adrian Lewis, Commercial Director for Activ Absence, expressed astonishment at the prevalent disregard for systematic absence management among SMEs. He noted, “Almost all of the people we speak to have no absence plan for key staff and the only system for managing absence or staff holiday is paper forms or a spreadsheet that takes up most of the HR Manager’s time to keep updated.”
Mr Parkinson advocates for a reevaluation of spending on employee wellbeing, highlighting the disproportionate balance between costs and the potential gains in productivity, morale, and staff wellbeing. He notes that the annual cost of sickness absences to UK businesses is estimated at £29 billion, suggesting that proactive measures could significantly mitigate such financial burdens.
The findings present a compelling case for SMEs to strategically address employee absence to safeguard productivity and financial stability.
