Your ultimate guide to employee absence

Absence at work 

In the UK the rate of employee absence has risen to its highest level in a decade. According to the WTW Absence Survey this reached 4% in 2023, with an average of 4.8 days lost per employee per year.  

Absence can be a complex issue, causing both direct and indirect costs for businesses. It’s important for HR to have a handle on this as part of their wider strategy to create an engaged and happy workplace. We’ve made this guide for employers to manage absenteeism from start to finish: from the common causes of absence, to great HR reports that can help you to uncover and present the story behind absence in your business.

Absence vs. leave 

The first thing to understand is that absence doesn’t account for holidays or periods of leave such as maternity leave. It only accounts for what is out of our control. 

So, for example, as an employer you know Jack gets 28 days of annual leave a year – so although he’ll be absent from work, you can plan for it. Meanwhile, when Kate takes a week off because she broke her wrist doing the worm at her friend’s wedding, you certainly can’t control it or plan for it. So, Kate’s absence is the type of thing we’re talking about when we say, ‘employee absence’. 

Common types of absence that you can’t control or plan for as an employer include sickness (including stress and mental health issues), accidents, bereavement, and family commitments like needing to look after a dependent. 

Note that parental leave can be planned for: you know when this period of leave is going to begin and when the person will return to work, so we wouldn’t count that as employee absence. 

What is absence management? 

Absence management is the strategic effort to reduce and manage employee absenteeism through policies, procedures and sometimes wider organisational change. Some organisations prefer to use the term attendance management as it is considered more positive, and this may even extend to rewarding employees for good attendance. 

When you’re putting together an absence management plan, you should think about how often people are taking time off, what percentage of your staff you will need to cover your services when someone is gone, and what steps you will take if this gets out of hand. 

In order to have an effective impact, this plan will need to be communicated to both employees and managers, with management/HR taking a proactive role in applying them. 

Why is absence management important? 

As an employer, employee absence can be a pain because it often occurs with little notice, leaving you with an under-resourced team. This often translates to peeved employees who are stretched and overworked, which has a knock-on effect for your customers. 

Absence management requires balancing support for employees who miss work due to illness, injury, or unexpected situations with appropriate processes and procedures in place to tackle frequent and questionable absences. It’s important to avoid disruption to the workplace and maximise employee productivity, whilst supporting their wellbeing and mental health with a culture of care. Good absence management can not only reduce burnout for employees, but also minimise any financial implications for the business. 

Why absence management is important for employers 

Absence management is important for employers because it helps: 

• Minimise disruptions: reduces the impact of unexpected absences on workflow and productivity. 
• Maintain productivity: ensures that teams can operate efficiently without the strain of frequent understaffing. 
• Control costs: lowers costs associated with overtime, temporary staffing, or lost productivity due to frequent absences. 
• Encourage accountability: discourages unnecessary absenteeism by setting clear policies and procedures. 

Why absence management is important for employees 

Absence management is important for employees because it helps: 

• Ensure fairness: creates a fair system where all employees are held to the same attendance standards, supporting equality within the business. 
• Provide support: offers support for those dealing with health issues, injuries, or personal emergencies through clear policies and procedures. 
• Promotes work-life balance: encourages employers to implement flexible policies that can accommodate employee’s needs, so that absence can be avoided. 
• Enhance team morale: reduces the strain on co-workers who may otherwise need to cover for frequent or unexpected absences, leading to a more cohesive work environment. 
• Clarify expectations: clearly defines attendance expectations, so employees understand their responsibilities.

In short, absence is either authorised or unauthorised. 

That means…well, pretty much what is says on the tin! Here are some common types of absence: 

Short-term absence 

This kind of thing is likely to last less than seven days and so a fit note won’t be needed. 

Common short-term illnesses include: 

• Colds and flu 

• Stomach upsets (e.g. that dodgy prawn curry you ate on Sunday night) 

• Headaches and migraines 

This will be classed as authorised absence because the employee will call in sick and take some time off for some much-needed R&R to get better. 

Long-term absence 

This is usually defined as a period of continuous absence of more than four weeks. This sort of absence may be due to: 

• Unexpected illness 

• A chronic condition 

• An accident (e.g. doing the worm after one too many glasses of Pinot Grigio…) 

• A planned operation 

This will also be authorised absence because you’ll be notified of this time off and why the employee isn’t at work. 

Unable to attend work 

This is where the employee may feel fine, but due to things like family commitments, they can’t come to work. For instance, parents with sick children may need to stay at home to look after them. Employees with aging parents may have the same needs. 

Unauthorised absence (AWOL) 

This is when someone doesn’t come to work and gives zero reason for their absence or doesn’t contact their employer. Other terms people use include: ‘AWOL’ or ‘absent without leave’. 

If you’re facing any of these types of employee absence and you want some help on how to manage them, skip to how to manage absence.

Women’s health  

Health needs specific to women, such as period pains and menopause, have been a taboo topic for many generations. And as such, this could have an impact on absence in your business, without you realising! 

Period pain 

A shocking 26% of employees feared their manager wouldn’t consider period pain a good enough reason to be absent from work, and therefore up to a quarter of those surveyed admitted to lying to their manager about their true reason for absence. 

Menopause 

In another study, around 50% of women said that menopause seriously affected their mental health. It also affected their concentration, and confidence in their ability to do their job, with 25% of the women surveyed said that their symptoms made them just want to stay at home. 

Despite this serious impact on their work, 70% of women said they feel they can’t tell their employer about their menopause symptoms. For more information, take a look at our Menopause Guide. 

Work stress 

The costs of work-related stress are estimated to be around £4 billion each year, with 17.5 million working days a year lost to stress. Stress is an automatic survival response to demands upon us which urges the body to act (the ‘fight or flight response’). When stress becomes an everyday occurrence, the part of our brain that regulates blood pressure and heartbeat – and enables us to learn, plan, concentrate and make judgements – begins to shut down. 

High levels of stress can lead to burnout or mental health issues, requiring employees to take time off to recuperate. There are many reasons why stress occurs at work. Tight deadlines, heavy workloads, and lack of managerial support can often trigger it. If stress is not properly controlled, it can have an adverse effect on your employees, and by extension, your wider business. Health and Safety controls in a business are often adequate to protect against physical hazards at work, i.e. the ‘safety’ part. However, businesses can often fall short when it comes to controlling the hazards that affect people’s health. 

For information on how you can strategically minimise the risk of stress in the workplace, and how to manage it if it does occur, read our helpful guide.

Looking after dependents 

Child sickness and childcare 

Employees might need to take time off to care for a sick child or manage childcare responsibilities when other arrangements fall through. 

Looking after a dependent 

Caring for an elderly relative, person with a disability, or any dependent friend or family member can require employees to take time off, especially in emergencies or when long-term care is needed. Find out more about supporting employees with carer responsibilities here. 

Seasonal trends 

Winter/Christmas 

When it comes to delving into the data of absenteeism, you may find there will be trends over time and seasonal spikes across the year. This could be down to adverse weather, seasonal stresses, or increased financial pressures. According to research, the first Monday of February is one of the most common days for employees to call in sick, so much so it has been coined the term “National Sick Day”. Businesses may find spikes in absenteeism during the winter months, especially post-Christmas as people tend to have more financial burdens and struggle with morale and motivation. 

Spike in colds and the flu 

Cold and flu cases typically start rising in October and peak around January or February. Possible reasons include colder weather weakening immune response, more time spent indoors in crowded spaces, and reduced sunlight exposure. Cold air can also cool the nasal passages, slowing mucus clearance and hindering immune cells, making it easier for viruses to bypass the body’s defenses

Seasonal Affective Disorder (SAD) 

SAD, or “winter depression,” typically affects people during the colder, darker months, causing symptoms like low mood, fatigue, difficulty concentrating, and loss of interest in daily activities. The leading theory suggests that reduced sunlight affects the hypothalamus, disrupting melatonin and serotonin production, and disturbing the circadian rhythm. 

Snow 

While snow can be rather pretty, it’s a pain in the backside to drive in. Plus, it often forces school closures. In short, this means employees may struggle to get to work, either because their cars get stuck, public transport gets cancelled, or they need to stay home with their kids. 

Summer 

Employee absences often rise dramatically during summer because of the heat, instances of sunstroke and sunburn, and pesky hay fever.

Plus, when the sun comes out, so does John’s socks and sandals combo, which can mean only one thing: it’s time to bunk off early and head to the pub. 

How can you manage absence during the summer season? What does the law say about employee rights during hot weather? Read our Summer Absence Guide to find out. 

Sport 

From a good old knees-up for a Derby Day, to getting up at 4am to watch a World Cup game, to sliding away early for the Wimbledon final… many of your employees will want to catch some sport. Whether they call in sick to do it, or just ‘work from home’ and watch it on the sly, you can always bank on sport to affect your employee absence rates.

Bereavement or funeral absence 

Only 30% of employees say the leadership of their organisation has communicated with them about grief or bereavement in the past year and subsequently, only 32% of employees are aware that their employer has a bereavement policy. 

Although employees may take very different paths when dealing with their grief, there are a number of things that employers can commit to offering as part of a policy for supporting bereaved employees: from offering leave and allowing for flexibility around workload, to communicating effectively about the support available and creating a culture where people are comfortable talking about grief. 

To find out how to support an employee who has suffered a bereavement, click here. 

Other causes of absence 

Other causes of absence include: 

Transport issues 

Car trouble, rail strikes, flat tyres and traffic jams are a common cause of late shows and missed days at work. These can be unavoidable, but if it happens on the regular, perhaps some help on improving the employee’s timekeeping skills or avoiding obstacles would be beneficial. Flexible start and finishing times can also help avoid commuting woes. 

Religious observance 

Time off for religious holidays or rituals allows employees to fulfill their spiritual or cultural commitments. Check out our inclusion and diversity calendar 2024-25. 

Work-related injuries 

Injuries sustained on the job may necessitate medical leave to allow for proper treatment and recovery. Find out about our Health & Safety services. 

Bullying and harassment 

A hostile work environment can cause employees to avoid coming to work, impacting their mental health and productivity. Watch our webinar on HR investigations. 

Fake sickness 

“Pulling a sickie” is a common concern for employers. Do your staff members have a suspicious routine when it comes to taking sick days? Are you not fully convinced by their “sickness and diarrhea” complaints? 

Some employees may report illness as a way to take unauthorised time off. As well as the usual impact of absence, this may also impact team dynamics and motivation as other colleagues cotton onto what’s going on. 

When getting to the route of the problem, however, don’t be hasty. Make sure you fully understand the situation before considering repercussions. Fake sickness may be covering for other very legitimate reasons for absence – such as caring responsibilities, women’s or men’s health problems, work-related stress or mental health issues – which your employee may not want to reveal because of privacy reasons, or they may worry their managers would judge them. 

Fake sickness can also indicate a wider cultural problem. Perhaps the employee is demotivated because of a lack of responsibility, structure, or recognition in their role, which leads them to think the work they do is pointless and take more time off. If this is the case, you’ll want to invest into your culture to address the issue at the source. 

If you have fully explored the issue and it turns out it’s an individual’s behavioural problem, then you can take it to a disciplinary process. More of that here.

Read our Summer Absence Guide for more information on this.

Your absence management policy 

An absence management policy is your go-to document for any situation where absence needs some care and attention. And if you haven’t created one, take it as your number-one action after reading this guide. 

(Lucky for you, we have an absence policy template to make things easier for you.)

So, what should your absence management policy contain? 

• The reporting procedure: this should include how and when to report sickness absence, whether contact must be made each day or less frequently and what information must be provided. 

• Evidence: this section covers what’s required for self-certification and when medical evidence (i.e. a fit note) is required, as well as any requirements to undergo examinations. 

• Unauthorised absence: the policy should be clear about the consequences of failure to follow the procedure and/or to provide evidence. 

• The return-to-work process: Find out more on the return-to-work process below.  

• Pay: include what payments will be received, such as Statutory Sick Pay and any entitlements to company sick pay, as well as any eligibility criteria for these payments.

Each organisation will determine its own standards for absence. Therefore, a staff absence policy should inform employees of these standards and let them know what is expected. An absence policy should provide a fair and consistent process to help managers and HR deal with absence and let employees know how it will be measured. There should also be provisions to support employees and absence management methods, such as flexible working. 

Your absence management policy should outline the procedure that should be followed when an employee is unable to work and in cases of leave management. This would include information as to who they should inform, how and when by, as well as what will happen when they return to work – such as a work plan following a long period of absence or a return-to-work interview following any period of absence. 

There should be a statement covering pay arrangements, whether the organisation provides the statutory minimum pay or enhanced sick pay for a set period. The policy should also explain what happens when absence becomes a problem and when disciplinary action might be invoked. 

Best practices for absence management 

How to manage short-term absence 

Where an employee has frequent short periods of sickness absence, you should make sure they follow your company policy relating to reporting sickness and providing evidence (as mentioned above). 

You should also investigate the reasons for the absence. It may be appropriate to obtain a medical report on the employee, to ascertain, among other things, if there’s an underlying cause of the absences. 

Depending on the circumstances, it may be appropriate for you to instigate either its disciplinary or capability process. (Skip to the section on disciplinary here.)

How to manage long-term absence 

Research shows that the longer an employee is off sick, the less likely they are to make a successful return. After six months of being absent, there’s only a 50% chance of the employee making a successful return to work. 

Here are some things employers can do to manage long-term absence. 

• Welfare meetings

A welfare meeting is an effective tool for managing long-term absence. In short, it’s an informal meeting with the employee to discuss their state of health, any available prognosis, and the likelihood of a return to work. The welfare meeting should also include a discussion about what steps (if any) you can take as an employer to facilitate the employee’s return to the workplace. 

• Access to medical report

Depending on the openness of your employee, you may not always have all the information you need to understand when they can return to the workplace, and to support them in doing this. The Access to Medical Reports Act 1988 (AMRA) gives employers the right to access reports provided by medical practitioners in connection with employment. 

Of course, the Act also gives employees the right to withhold their consent from certain information being provided about them by their doctors. 

• Reasonable adjustments

This is relevant where employees have or develop a disability which causes them to be absent from work. 

A ‘reasonable adjustment’ is a change to remove or reduce the effect of an employee’s disability so they can do their job. 

Examples include: 

– Providing the right type of phone for an employee who uses a hearing aid. 

– Providing office space on the ground floor for someone who uses a wheelchair. 

– Replacing a desk chair with one designed for an employee who has a disability affecting their back.

– Giving one-to-one support to help an employee suffering from anxiety. 

– Allowing a phased return to work for an employee who’s been on long-term sick leave because of their disability (more on that, next).

• Phased return to work

A ‘phased return to work’ includes returning to work on reduced hours, lighter duties or different duties. For instance, if someone’s been on sick leave due to an accident that affected their physical health, and part of their job requires heavy lifting; that element of their job would be omitted from their duties. 

Of course, you and your employee should agree on a plan for how long the phased return will last. For example, you might agree to review how things are going after a month and then decide to increase the working hours or duties, or you might decide to continue with the changes for a little longer. 

Note that you should continue to review the employee’s health and wellbeing in the workplace and make new adjustments if necessary. 

• Medical capability dismissal

Sometimes an employee may have to stop working because of long-term ill health. They may resign, or you may have to consider dismissing them. 

Dismissal (jump to more on this below) is a last resort and you should consider as many ways as possible to help the employee back to work, including: 

– Getting a medical report from their GP with the employee’s permission – they have the right to see the report before you do. 

– Arranging an occupational health assessment. 

– Work out whether they have a disability and make any reasonable adjustments (as above) to help them do their job. 

If the employee can’t do their job because there are no reasonable adjustments that can be made, it may be fair for you to dismiss them, even if they have a disability.

How to manage AWOL 

First up, try to make contact. If no contact is made, then it’s time to put pen to paper and invite the employee to a meeting (potentially a disciplinary meeting) to allow the employee to provide an explanation for their absence. 

If the employee fails to respond to the invite, you can take action in line with your disciplinary procedures.

Top tips for preventing absence

1. Communicate an absence policy

A set of written guidelines in the form of an absence management policy will help balance the needs of both the employer and the employee. Communicate the policy clearly, and employees will know what’s expected of them.  

Download our handy absence policy template to get started. 

2. Set trigger points

Trigger points are the thresholds that ‘trigger’ line management action. For instance, organisations may set a trigger point for the number of days taken off during a set period. 

When setting trigger points, you must consider the length and/or number of separate instances of absence over a fixed period – for example, three short-term absences in 26 weeks. 

If an employee is regularly absent for short periods or for more than a given number of consecutive days (e.g. five consecutive days) the line manager can discuss any underlying health or disability issues and consider the circumstances that may be causing the absence. 

If a period of absence becomes prolonged (i.e. more than four weeks), an employer may suggest a ‘fit for work’ referral to a health professional. 

Note that some organisations use the Bradford Factor to score absence. It uses a mathematical formula to take the number and frequency of absences to produce a simple score based on their estimated impact on a business. However, you shouldn’t use it in isolation – find out why here. 

3. Keep up morale

Unhappy employees are more likely to call in sick. It’s therefore important to create an enjoyable and stimulating environment. 

What will boost morale? Well, you’ll be glad to know you don’t need to invest half a million on a wacky office slide. You can arrange staff days out and social events (or course, virtual events). 

Employee benefits, including private healthcare and subsidised gym memberships, can also help to increase workplace positivity. These benefits work two-fold – encouraging your workforce to lead a healthier lifestyle and helping to reduce the risk of them falling ill. 

4. Understand the reasons

Get to the root of the problem to help you deal with it more effectively. As discussed, there are plenty of reasons why employees are absent from work – such as illness, injury or, occasionally, there’s no good reason at all (unless you think ‘binge watching the latest series of Bridgerton’ is a good reason?) 

Back-to-work questionnaires or interviews will help you identify the ‘whys’ of the absence and show employees that you’re enforcing your absence policy. 

5. Reward good attendance

Try offering your workforce an attendance incentive. Whether it’s a juicy bonus for a perfect record, or for the least number of days off, many organisations have tried and succeeded with this approach. Of course, some argue that good attendance shouldn’t be rewarded at all, since it’s a basic requirement of a person’s employment. You’ll need to review how severe your absence issues are before deciding the right course of action here.

6. Create a safe workspace

Workplace accidents are common everywhere, whether at the office or at hazardous building sites. They’re often a result of inappropriate or worn-down equipment. 

By failing to provide suitable equipment, you’re putting your employees and (potentially) members of the public in danger. Of course, accidents on the back of dodgy, old equipment also increase the likelihood of subsequent absence. 

7. Be realistic and flexible

Some circumstances can’t be anticipated. Now, more than ever, employees may need time off as a result of mental health issues. Whether it’s changes to their hours or allowing remote working, offering flexibility to your employees can help manage the effects of their absence and improve overall morale. You could also give employees the chance to buy additional holiday time or take a certain number of days off as unpaid leave.

Return-to-work interview 

A return-to-work interview is a short and informal meeting held between the employee who has been absent and the employer. ‘Interview’ makes it sound quite formal and scary, doesn’t it? They should’ve called it ‘return to work catch up’ – that’d be much better. 

During the meeting the employer should check the doctor’s guidance in the employee’s fit note and discuss the details of how the employee will return to normal working life. You should also determine whether they have a disability, how this can be accommodated, and if their absence was a result of any health and safety issues in the workplace. 

The interview shouldn’t often be long or drawn out (again, think of it as a quick catch up). You can judge if you’ll need a bit more time based upon the circumstances. 

For example, if someone is rarely absent and the reason is straightforward, the meeting may only last a few minutes. Where an employee has failed to follow company procedure, this will need to be addressed in the meeting (so it may take a bit longer than a few minutes). 

Of course, an employee who persistently fails to follow the rules should be managed under your organisation’s disciplinary procedure. So, this would be a longer, different type of meeting. 

Want to read up on managing long-term absence? We covered this in the ‘managing absence’ section.

Fit notes 

‘The Statement of Fitness for Works’ is a bit of a mouthful, so everyone just calls them fit notes. 

A fit note is provided by doctors to show an individual ‘may be fit for work’ or ‘not fit for work’. This means employers and their employees can have a more informed back-to-work discussion. 

Generally, fit notes are provided when an employee has been absent from work for more than seven days. It may also include a doctor’s suggestions on how the individual can more effectively return to work. Additionally, you may also find on a fit note details of how the individual’s condition may affect aspects of their work. 

Fit notes were introduced in April 2010, replacing the old ‘sick note’.

When and how to conduct disciplinary action

When an employee’s absence is unexplained or unconvincing, it’s possible an employer can undertake disciplinary action. 

But before jumping into this, be aware that genuine sickness, difficulties at home, or problems with the commute are not matters of misconduct. 

Prior to taking any kind of disciplinary action, an employer should: 

• Request the absentee call in by a certain time each day 

• Have a line manager follow up on unexplained absences 

• Carry out a return-to-work interview

• Give the employee an opportunity to improve by issuing oral or written warnings 

Once you’re sure you’ve carried out the correct procedures and that the situation hasn’t improved, a dismissal may be considered as a last resort. 

In order to follow a fair disciplinary procedure, the employer should provide the employee with: 

• Written details of the allegations being made against them 

• Any supporting evidence 

• An invitation to a disciplinary meeting 

• The opportunity to invite a colleague or trade union representative to their disciplinary hearing 

• The chance to put forward their case at the hearing 

• An outcome letter, detailing the result of the hearing and stating reasons for the decision 

The right to make an appeal against their dismissal

If an employee fails to respond to an employer’s efforts to contact them, a disciplinary meeting can be conducted in their absence – but a letter should be sent informing them that action is being taken. 

Capability dismissals

In extreme situations, it may be legally fair to dismiss a frequently absent employee even if the absence is genuine – usually on grounds of medical capability. But this should only be a last resort after a thorough and careful process of medical investigation and consultation and after all other avenues have been explored.

An introduction to absence reporting 

Reporting is a crucial part of most business factions. It’s important to be able to view and judge whether goals have been reached, what’s costing more than budgeted for, and where you’re maybe missing the mark. 

And absence is a key area for HR to review as part of their regular reporting repertoire. You’ll want to dig into the data to find out: 

• If there are any times in a year when absence peaks (think summer, Christmas, and school holidays) 

• If there is any pattern to the days and times when absence is taken 

• If any individuals or teams are taking significantly more than the average absence 

• Employee engagement scores and overall satisfaction at work 

• Qualitative feedback on how you can improve the workplace   

When you have this information, you can create and use these insights to address any problem areas. 

The Bradford Factor process 

The Bradford Factor is a method used by employers and HR professionals looking to objectively calculate rates of absence for all employees. The Bradford Factor is based on the theory that short, frequent, unplanned absences are more disruptive to businesses than longer periods of absence. Using a mathematical formula, it takes the number and frequency of absences to produce a simple score based on their estimated impact on a business.  

The Bradford Factor can be used to identify employees with a high absence record, allowing HR to intervene and provide support before this worsens. It can also be used to support disciplinary action decision-making and track employee absence trends over time. The formula can be used in a positive, proactive way of identifying and offering additional support to employees such as flexible working arrangements or help from the employee assistance programme.  

Although there are benefits of using this mathematical formula, employers should consider the bias implications of using the tool, such as employees with disabilities or chronic health conditions who may have frequent absences out of their control. It also doesn’t take the reason for the absence into account, meaning employees may be penalised even though they have legitimate absences due to illness or other unforeseen circumstances. 

Read our blog article for a further insight into the Bradford Factor; exploring the good, the bad and the ugly, and how to use it within the wider world of absence reporting.

Absence tracking, triggers, and KPIs 

Absence tracking and triggers 

Collecting absence data is pointless if it’s not used to improve management practices. A practical approach is to set clear triggers or stages, outlining specific actions to review, support, and manage employees who are off sick. When an employee reaches a certain trigger, managers can easily follow the pre-defined steps in the absence policy. 

These action stages should address both short-term and long-term absences, ensuring that frequent short absences and extended sick leave with GP fit notes are managed effectively. By establishing these triggers and communicating their purpose, the company reinforces that sickness absence will be handled fairly, aiming to facilitate a quick return to work. 

Absence KPIs 

All departments in your business will ideally have KPIs (or Key Performance Indicators) which track long-term performance against achieving your objectives. KPIs may be used at a team or individual level, and often provide focus for roles, guide decision making, and provide tangible milestones to measure success. In large teams they are often created in a hierarchical or ‘drip down’ structure, where wider business objectives are broken down into smaller and smaller chunks, so all levels of the organisation contribute towards them. 

HR KPIs typically include trackable metrics that measure processes related to recruitment, training, talent management, and employee satisfaction. A KPI is only useful if it has a direct link with your overarching business strategy. Importantly, you should only be tracking the KPIs that are business-critical; they are called ‘key’ performance indicators for a reason! 

KPIs will vary depending on the nature of your business, and the HR KPIs you do choose to track should support decision making for your business’ strategy. When it comes to absenteeism, monitoring your absence rate is helpful to identify any problems in your business in cases where it is higher than expected.  

The absence rate can be measured at an individual level, team level, department, or your entire business to understand any issues that are specific to one area of your business. It can also help to flag any underlying health and safety issues that are causing your employees to take more time off work.

The cost of absence

Research carried out by Vitality found that poor health at work is responsible for an estimated £138 billion per year due to absence and impact on productivity in work. From their analysis, they found that mental health issues had the greatest negative impact on productivity, with those at risk of depression, fatigue and burnout losing 151%, 141% and 120% more productive days in comparison to those who don’t report these types of health issues.  

That being said, physical health shouldn’t be dismissed as the data found that health factors such as poor diet, obesity, musculoskeletal conditions and lack of physical activity increase lost time by 14%, 54% and 28% respectively. Interestingly, the research showed a generational divide, with those under 30 losing an average of 59.7 days per year, whereas those over 50 losing an average of 36.3 days per year. These days for under 30s are mainly lost due to mental health issues as they’re 224% more likely than older employees (over 50) to suffer from depression.

Why does absence cost so much?

It’s costly for a number of key reasons. Let’s take a look at the main ones: 

1. You may need to fork out for temporary cover

If an employee is absent for a substantial period, you may need to pay for a temporary worker to carry out their work. So, you may be paying for the absent employees’ leave (if your policies cover that) and you’ll be paying an agency for every hour the temporary worker does. 

2. You lose out on productivity

It will take time for a temporary worker, or an internal replacement, to learn the ropes. Plus, someone’s got to train and monitor them – which takes up more time. And of course, there’s the potential loss of management time spent consulting with HR and health specialists about the absent employee in question. 

3. You miff off your customers

Absence can cause serious disruption at work, with team members frantically trying to cover their absent colleagues’ workload, as well as their own. This can lead to low employee morale, missed deadlines, mistakes, and a general nosedive in quality… not great for customer retention! 

Use our absence calculator to discover how must it costs your business.

Paid vs. unpaid leave 

Employers can choose to offer both paid and unpaid leave to their employees. Paid leave allows employees to receive normal pay whilst taking time off for personal issues. It’s not required for employers to offer this, but it may be seen as a desirable benefit for employers to consider when looking at their recruitment and retention strategies.  

Some businesses will provide their employees with a set allowance of paid leave for them to use where necessary throughout the year. Examples of paid leave of absence include bereavement, parental, jury duty, medical, and educational.  

On the flip side, unpaid leave is the extended time period employers allow their employees to take time off work without providing any compensation. Some companies will allow their employees to use accrued annual leave for these absences. 

SSP (Statutory Sick Pay) 

When am I responsible for paying SSP? 

As an employer, you’re responsible for paying SSP if any of the following apply to your situation: 

• You pay Class 1 National Insurance contributions for your employee (or would do if not for their age or their level of earnings) 

• Your employee has been sick for 4 or more days in a row (including non-working days) 

• Your employee has told you they’re sick within your own time limit (or 7 days if you do not have one) 

Weekly SSP Rate 2024 

SSP rates normally change every year. If you don’t have software that does it for you then you will need to keep up with changes and apply them to your payroll. To find rates of Statutory Sick Pay from April 6 2024 onwards, click here. Alternatively, bookmark our Payroll Legislation Guide to stay up to date with statutory rates and other need-to-know information. 

If you need to know how to manually calculate Statutory Sick Pay (SSP), read our blog article here. 

Contractual sick pay 

An employee’s contract may specify that they receive more than the standard statutory sick pay. This is often referred to as “company,” “contractual,” or “occupational” sick pay. 

An employer may set conditions for employees to qualify for contractual sick pay. Typically, this means that an employee must have worked for a minimum period before becoming eligible. For instance, some employers may require at least six months of service before an employee can claim contractual sick pay. 

Certain company sickness policies also allow the employer discretion over whether to provide contractual sick pay or default to Statutory Sick Pay (SSP) instead. 

However, if questioned, an employer must be able to justify why contractual sick pay was not provided when the employee meets the eligibility criteria set by the company. 

If an eligible employee is denied contractual sick pay, they may have grounds to file a claim for breach of contract and/or for unlawful deduction of wages by the employer.

Average sick day per employee

The average number of sick days taken in a year by employees has increased in the last few years. The CIPP found that employees were absent for an average of 7.8 days last year, which has increased significantly since the pre-pandemic rate of 5.8 days.

Stress seemed to be the most notable reason for both short and long-term absences, with over 76% of employees reporting stress-related absenteeism in the past year. Heavy workloads were identified as the primary cause of stress-related absence (67%), followed by management style (37%). Minor illnesses (94%), musculoskeletal injuries (45%), and mental health issues (39%) were the top reasons for short-term absenteeism. 

For more information, have a read of our ultimate HR reporting handbook.

How software can be your friend

Did you know that 29% of SMBs have no technology supporting their HR analytics and reporting? A recent survey showed that organisations are wasting an average of 17 hours every week just producing HR reports – that’s over two full working days! 

Reporting on absence is important to HR departments. Not only does it help you spot trends and report upwards. It also signals to you when you need to take a step in and when issues are coming to a head. Like with everything in HR, you could manually report on it. Here’s just a few reasons people opt for proper HR reporting: 

The benefits of HR reports in your HR Software

• Put a stop to your HR team having to manually pull data  

• No more time wasted on combining data across departments 

• Enhanced accuracy and reduced errors 

• Data-driven insights for better decision making 

• Streamlined administrative processes  

Employee engagement reports

• Boost employee experience with clear cut goals coming from data 

• Use pulse and eNPS surveys to gather real sentiment 

• Build a positive workplace culture

An introduction to absence management software

Absence management software is a digital tool designed to help organisations track and manage employee absences, including leave, sick days, and other types of time off. It automates the process of recording, monitoring, and reporting employee attendance and absences, ensuring compliance with company policies and employment law legislation. The software typically integrates with other HR systems and payroll systems to streamline administrative tasks. 

It can be difficult to manage such an important part of the business, but absence management software makes it easy. 

Using an absence tracking system can make it easier to record absences, understand the causes of absences and analyse the data for underlying trends, such as a specific department having the highest level of absence. 

The growing trend of employees working remotely has presented many challenges for employers. Not only does it increase the likelihood that an employee will miss work due to family emergencies or doctor appointments, but it also means the employer is unable to monitor their productivity at all times. This is another reason why a software tool is an excellent way to stay on top of absentees. 

Key features of absence management software

Tracks leave requests

• Allows employees to submit leave requests online
• Managers can review, approve, or decline requests through the system
• Tracks different types of leave (e.g. annual leave, sick leave, parental leave, unpaid leave)

Monitors attendance

• Tracks employee attendance and records hours worked
• Monitors patterns of absenteeism, lateness, and early finishes
• Supports the implementation of attendance policies

Automates leave calculations

• Automatically calculates leave balances based on accrued time and usage
• Updates balances in real time, reflecting any approved leave

Hosts customisable policies

• Allows organisations to set custom rules for leave types, carryovers, and accruals
• Supports compliance with laws and regulations

Integration with other systems

• Integrates with HR, payroll, and time tracking systems
• Ensures seamless data flow between departments and reduces manual data entry, saving precious time!

Reporting and analytics

• Generates reports on attendance, absenteeism trends, leave balances, and more
• Helps managers identify patterns, such as frequent short-term absences or extended leave usage
• Provides insights to support strategic workforce planning

Employee self-service portal

• Allows employees to view their leave balances, and check the status of their requests
• Reduces the administrative burden on HR by empowering employees to manage their own leave

The benefits of using absence management software

Increased efficiency

Automates the process of managing leave requests, approvals, and tracking, saving time for HR admins and managers. 

Better compliance

Helps ensure adherence to employment law legislation and organisational policies, reducing the risk of legal issues. 

Improved accuracy

Reduces errors associated with manual tracking and paperwork. 

Enhanced employee experience

Provides transparency and easy access for employees to manage their own leave and attendance. 

Data-driven insights

Offers insights to help businesses make informed decisions about workforce planning and productivity.