Reported on Thu, 10 Aug 2006

Absences caused by sickness are costing small firms in the UK billions of pounds a year, new research reveals.

Among the businesses hit with higher employee absenteeism include electricity companies, paying up to £1,006 a year for sick days, according to health care provider BUPA.

Absences cost companies in the restaurant and hotel sector £405 a year, with engineers losing £632 a year and manufacturers missing out on £645.

Ann Greenwood, director of business markets for BUPA Health Insurance, said: "Businesses need to understand the impact that sickness absence can have on them, in terms of their performance, productivity and efficiency, as well as the effect it will have on their employees.

"The figures will be a shock to many companies but businesses can take preventative action and private health cover can be a major step towards achieving a cleaner financial bill of health."

Recent research from the Confederation of British Industry has revealed that employee absence costs the UK economy £13 billion a year.

People who run their own business, such as self-employed tradesmen and fear losing out financially due to absence may benefit from a business loan.

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