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Absenteeism

Presenteeism

Evidence shows a ratio of 1:2.5 for the cost of absenteeism to presenteeism. Therefore, for every £1 cost to business of absenteeism, there is estimated to be an additional cost of £2.50 due to presenteeism

Staff Turnover

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Explanation:

 Term Definition
Absenteeism Not attending work
Presenteeism Attending work while unwell
Staff turnover The proportion of employees who leave an organisation over a set period (often on a year-on-year basis)
Descriptions and figures Source
Average number of days of absenteeism per employee per year: 6.9 Chartered Institute of Personnel and Development (CIPD) Annual Survey Report 2015: Absence Management.
Cost per day: £92.27 Chartered Institute of Personnel and Development (CIPD) Annual Survey Report 2014: Absence Management.
Cost of presenteeism relative to the cost of absenteeism: 1:2.5 On the basis of the following research ERS assumed a ratio of 1:2.5 for the cost of absenteeism to presenteeism. Therefore for every £1 cost to business of absenteeism there is estimated to be an additional cost of £2.50 due to presenteeism.

  • The Sainsbury Centre for Mental Health estimated that the costs to employers due to presenteeism because of mental health problems was 1.8 times that of absenteeism.  This accounts for an absenteeism : presenteeism ratio of 1 to 1.8.
  • Research by Katherine Ashby and Michelle Mahdon, ‘Why Do Employees Come to Work When Ill?: An Investigation into Sickness Presence in the Workplace’, The Work Foundation and AXA PPPHealthcare, London, April 2010, 69 pp. found that the ‘sickness presence’ (where an employee attends work but is unwell i.e. presenteeism) may account for up to 50% more working time lost than absenteeism. This accounts for a absenteeism: presenteeism ratio of 1 to 1.5.
  • Research published by Birmingham’s Aston University in 2010 revealed the cost of presenteeism amounted to twice the cost of absenteeism, according to figures from the Economic and Social Research Council.  This accounts for a absenteeism : presenteeism ratio of 1 to 2.The Houses of Parliament Parliamentary Office of Science and Technology Postnote No. 422: Mental Health and the Workplace (October 2012) cited that there is little information on the extent of the problem in the UK but research from Australia and the USA suggests that the cost associated with presenteeism are 2.6 times greater than those of absenteeism.  This accounts for a absenteeism : presenteeism ratio of 1 to 2.6.
  • A report by Simplyhealth and the Chartered Institute of Personnel and Development (CIPD) identified that absence among the UK workforce fell from 7.7 days per employee in 2011 to 6.6 days in 2014.  The report outlines that the level of presenteeism, however, has been rising.
Annual estimated staff turnover: 15.7% Chartered Institute of Personnel and Development Annual Survey Report 2009: Recruitment, Retention and Turnover Survey.
Average turnover costs per position: £30,614.00 Oxford Economics (2014). Understanding the financial impact of staff turnover.

 

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