Absenteeism is costing small businesses €540 million annually, according to a recent survey carried out by Irish Small and Medium Enterprises' Association (ISME).
The survey of 400 companies found that on average employees are absent for an additional six days annually on top of their holidays. Companies surveyed said that in their opinion 75 per cent was due to feigned illness.
The highest incidence was recorded in Dublin, with an average of seven days per employee, while the lowest levels were recorded in Connacht, with just 4.5 days lost on average.
The Metal and Engineering sectors recorded the highest days lost per employee, at ten days, with the food industry services recording the lowest - just three days..
ISME has called on companies to introduce procedures, including the recording of absenteeism levels and back-to-work interviews, to establish cause of absences, to try to reduce the problem.
"Failure to introduce adequate measures to address this growing problem will impose a significant cost on a company both financially and in human terms," ISME warned.