OBSERVER/Sickness Absence: Ireland boasts the highest wage inflation rates in Europe for the third year running, and yet we are one of a small number of countries in the developed world that do not compile official annual statistics on labour absenteeism.

Yet employee malingering is a perennial problem for Irish employers. It is also an expensive one, costing Irish employers more than €215 million per year, according to some estimates. The cost of sickness absence is even more glaring when you consider the view of employers responding to an online survey, conducted by Softworks Computing, a supplier of Time and Attendance/Flexitime solutions.

Respondents, who represent a cross section of more than 200 high-profile companies operating in both Ireland and Britain, believe that 34 per cent of employee sickness absences is not necessarily as a result of ill-health.

The average time lost to employee sickness last year was 3.7 per cent, that's about 8½ days per employee per annum, according to IBEC. These figures are clearly unacceptable to employers, who see sickness absence as a major obstacle to a more efficient working culture.

Here's a snapshot:

• The number of days that Irish organisations lose annually as a result of staff illnesses varies from as few as two to as many as 15 per employee;

• The problem is most acute in the public sector where workers on average take an extra 1.7 days per year as compared with their counterparts in private industry;

• When it comes to excuses, slackers tend to be uninspired. Back pain, sore throat, colds, flu, toothache and migraine are the standard fare;

• Women are more likely to take sickness absence than men: in autumn 2001, 3.8 per cent of female employees were absent in the previous week, compared with 3 per cent of men. Rates for men are highest among 25-29-year-olds, while for women they were highest in the 20-24 age group;

• Nearly one-fifth of employers do not know the level of sickness absence in their organisation, let alone how much they are losing due to employee malingering;

• Mass sick leave has been used as a tool in industrial disputes, as highlighted by the teachers' "chalk flu" and the Gardai's epidemic "blue flu";

• The "sickie" has also been touted as a potential weapon for civil unrest. A group of armchair revolutionaries in Britain, the US and Canada celebrated World Sick Day on May 1st, by encouraging employees to phone in sick, in an effort to bring down capitalism;

• Some employers believe their employees have come to treat faking illness as an acceptable part of working practice. One respondent stated: "Employees will take it as a right, just like holidays, and will make sure they use up their allocation."

• Another said "short-term absences" of one or two days are questionable, particularly if they occur on a Monday or Friday.

• Up to 75 per cent of employees who are absent following a workplace accident take more recovery time than they need to exaggerate the seriousness of the accident and push up compensation.

What is your company doing to stamp out employees faking illness?

Determining if and why employees exploit leave policies is important. Creating a working environment where employees soldier through illness out of fear is generally regarded as counter productive. But how can you reduce its financial impact, without dragging ill people back to work?

Just as an employer analyses labour turnover, an organisation should look at sick leave trends. Is leave usage higher in one department or under a particular supervisor? Are workplace practices or policies affecting absences? Do children's illnesses in turn lead to your staff taking time off? Many companies are still using restriction of sick pay and disciplinary procedures to tackle non-genuine illness, but increasingly in Irish companies, the carrot is replacing the stick.

Among the latest anti-sick strategies cited by respondents to the Softworks online poll are:

• Monitoring of employee sickness absence records for frequency and patterns;

• As many as three-quarters of the respondents do not have any idea of the cost of absence to their organisation. Some 98 per cent of organisations responding to the Softworks poll cited tightened attendance review as the most-effective means in reducing employee malingering;

• Return-to-work interviews are probably the most influential element in ensuring that absences are not treated casually;

• Striking a better work/life balance seems key in dealing with employee's family responsibilities. With family-friendly initiatives in place in more than 65 per cent of Irish organisations, employers seem keen to recognise this;

• Bonuses and monetary incentives for a good attendance record, although there may be a danger of promoting the idea that it is more than a normal requirement.

Is there room for improvement?

Irish employers can be consoled that Ireland boasts one of the lowest absence levels within the EU.

Nevertheless, illicit sickness absence and its complex causes is draining Irish employers. Early recognition, effective assessment and rapid intervention are key to managing short-term and frequent absence, and can prevent it from becoming a longer term and more sustained problem.

But HR departments and managers alike need to be open to alter their approach. There is a way to cure a good portion of malingering. It takes work on the employer's part, but those who have programmes in place see the results. And it is clear the rewards of attendance management are to be reaped.

• Dianne Flood is a human resources analyst with Softworks Computing. Based in Bray, Co Wicklow, it specialises in the management of time and human resources.