11 ways to reduce absence costs in your business

Managing employee absences effectively is crucial for maintaining productivity and minimizing costs. Here are 11 easy ways to reduce absence costs and ultimately save your business money.

1.    Establish a Clear Absence Policy:

Develop a comprehensive absence policy that outlines how employees should report their absences. Specify the reporting times and the person to whom they should report. Ensure that the required supporting documentation, such as self-certification forms or doctor’s sick or fit-for-work notes, is clearly defined.

2.    Specify Sick Pay Details:

Clearly state the sick pay entitlements within your policy. For instance, detail whether employees are only entitled to Statutory Sick Pay (SSP) for up to 28 weeks, subject to three waiting days, or if your company provides contracted sick pay. This could include full pay for the first eight weeks and half pay for the next four weeks, for example.

3.    Implement Sports Injury Limitations:

Consider setting limitations on absences due to injuries from contact or dangerous sports.

Evaluate whether your business can afford to provide full pay for extended periods, such as 8 to 12 weeks, for an injury like a broken leg sustained while playing football.

4.    Encourage a Healthy Workplace:

Promote health and wellness initiatives to reduce the likelihood of illness and injury. This could include offering gym memberships, organizing wellness workshops, and providing healthy snacks in the office. A healthy workforce is less likely to take sick days.

5.    Foster a Positive Work Environment:

Create a supportive and engaging work culture. Employees who feel valued and satisfied with their jobs are generally less likely to take unnecessary absences. Recognize achievements, provide opportunities for growth, and maintain open communication to keep morale high.

6.    Flexible Work Options:

Offer flexible working arrangements, such as remote work or flexible hours. This can help employees balance their personal and professional lives more effectively, reducing stress and the need for time off.

7.    Monitor and Review Absence Data:

Regularly review absence data to identify patterns and trends. This can help in addressing the root causes of absences and implementing targeted interventions.

8.   Absence Management Software:

Use absence management software to ensure accurate record-keeping, identify absence trends, and calculate Bradford absence scores.

9.    Return to Work Meetings:

Make sure that you have a return to work meeting with your employees on their first day back to ascertain the reasons for absence and fitness to be able to return to normal duties.

10.   Provide Support for Return to Work:

Develop a clear return-to-work program to support employees coming back after a period of absence. This can include phased returns, modified duties, or temporary adjustments to their workload. Supporting employees in their transition back to work can reduce the likelihood of recurrent absences.

11.   Training for Managers:

Train managers on how to handle absences effectively. This includes understanding the legal aspects of absence management, knowing how to conduct return-to-work interviews, and recognizing when to refer employees to occupational health services.