Small businesses lost €692 million due to absenteeism last year, with stress now cited on medical certificates as the main cause of absence, a report from the Small Firms Association (SFA) has concluded.
A total of 5.8 million days were lost to absenteeism in the economy last year, the association's sixth national absenteeism report found.
On a regional basis, the south-east and west of the country fared worst, recording average annual rates of 13 and 12 days absence respectively, compared to a national average of nine.
Absenteeism was lowest in the Dublin region, at 3.2 days per worker.
The SFA estimated the cost to business of days lost through illness by applying sick pay schemes based on average earnings of €120 per day.
"This takes no account of other direct costs such as the requirement to replace absent staff with other workers or overtime payments, and the cost of medical referrals," SFA director, Patricia Callan, said yesterday.
When these and other factors were accounted for, the total cost to business could be as high as €1 billion, she added
The highest rate of absenteeism was recorded in the electronics industry, where an average of 16 days was lost, the survey found.
"This may be due to the repetitive nature of the work involved in these industries. In marked contrast, small firms generally have more flexible jobs, less pigeon-holing and are less boring," Ms Callan said.
At 2.2 days per worker, the wholesale, distribution and transport industries recorded the lowest average rate of absenteeism, a fact that Ms Callan attributed to the higher degree of interaction between people.
The report found that workers in small firms were absent for seven days on average, compared with respective averages of 11 days and 10 days for workers in medium-sized and large firms.
"Stress has arisen as a key cause of absence from work, replacing back pain as the most commonly cited problem on medical certs.
"This is a particularly concerning development, as aside from absenteeism, stress can lead to a less productive workforce, faulty decision-making and ultimately the possibility of legal action being taken against the company."
Ms Callan said employers should include stress risk assessments and improve communication, job design and working conditions as ways of boosting employee attendance.
"On a practical level, they should also ensure that their employer's liability insurance will protect them against any compensation awards that may arise from this area."
Absenteeism is defined as the unscheduled disruption of the work process due to days lost as a result of sickness or any other cause not excused through statutory entitlements or company approval.
