Reported on Mon, 22 May 2006

Increased numbers of businesses are suffering from the effects of employees taking sickness leave without a genuine illness, claims a new report, but taking out a business loan could enable companies to galvanise operations after a badly affected period.

A survey by health benefits provider HSA and Employee Benefits magazine found that 20 per cent of businesses believed their staff viewed sick leave days as a paid entitlement to provide extra time off work.

This rise from just eight per cent last year was most pronounced in the retail sector where 42 per cent of respondents believed their profits were being, with the service sector following on 26 per cent.

"It is worrying that so many days are lost to organisations when staff are not genuinely sick, especially when you consider that absence costs UK companies around £12 billion a year," said Suzanne Clarkson, head of corporate marketing at HSA.

"With factors such as sickies, stress and work/life balance all appearing as key factors for sickness absence in our survey, it is clear that it is no longer just the physical health of employees that companies have to consider, but also their psychological health," she added.

Firms afflicted by high rates of staff absence could help to get production levels back on their feet or look at ways to provide improved working conditions by taking out a business loan.

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