Recent research highlights the growing concern among SMEs regarding staff absence impacts.
- A significant 68% of SMEs fear revenue and productivity dips from prolonged employee absences.
- Only 30% of SME owners have a strategy to mitigate sickness-related absences.
- There’s hesitance among SME owners to invest in absence management systems.
- Industry specialists stress the financial and operational risks of ignoring absence management.
Joint research from Mind and the Federation of Small Businesses reveals a paradox in small enterprises: while they often enjoy good staff relations and lower-than-average sickness absence rates, they remain inadequately prepared to handle such absences. For smaller firms, each employee’s role becomes crucial, making unplanned absences notably impactful.
Approximately 68% of SMEs express anxiety about the repercussions on both revenue and productivity if an employee is absent for over four weeks. Despite this concern, just three out of ten business owners have formulated a plan to manage or reduce such absences effectively.
The reluctance to invest in systems or benefits that can mitigate sickness and improve absence management is prevalent among SME proprietors. This hesitance potentially exacerbates the risk associated with prolonged staff absences, resulting in unanticipated business costs.
Glen Parkinson, SME Director at AXA PPP healthcare, points out the significant risks SME owners identify concerning lost productivity and revenue due to prolonged employee absences. He advocates for the development of systems to manage absences to avoid sudden costs, such as hiring temporary replacements.
Absence Specialist Adrian Lewis of Activ Absence highlights the lack of serious consideration given to absence management within SMEs. He notes the over-reliance on outdated methods such as paper forms or spreadsheets, which burden HR departments and hinder effective absence management.
Parkinson concludes by acknowledging the overwhelming responsibilities of small business owners, which can lead to the oversight of employee health provisions. However, he argues that investing in employee wellbeing ultimately benefits productivity and morale.
Investing in effective absence management is vital for SMEs to safeguard productivity and morale.
