Small businesses often maintain strong staff relationships, with generally lower sickness absence rates. However, absence still poses a significant challenge due to the critical roles each employee plays.
- Research by AXA PPP healthcare shows that 68% of SMEs are concerned about the impact of prolonged staff absences on productivity and revenue.
- Only 30% of business owners have a plan to manage or reduce prolonged sickness absence within their workforce.
- Business owners are hesitant to invest in systems or benefits that could mitigate the effects of employee absence.
- Experts argue that investing in employee wellbeing leads to better productivity, morale, and overall business health.
In smaller businesses, the absence of even a single employee can significantly disrupt operations and affect overall productivity. This is because each employee often fulfills a vital role, contributing directly to the business’s core functions. The strong relationships that small businesses typically have with their employees do not fully mitigate the operational challenges posed by staff absences.
According to a recent study by AXA PPP healthcare, a notable 68% of small and medium-sized enterprises express worry that extended periods of employee absence could lead to decreased productivity and, consequently, affect revenue. Despite these worries, only a minority, just three out of ten business owners, have established plans to effectively manage these absences. This lack of preparedness could hinder an SME’s ability to navigate unexpected employee absences efficiently.
The research further reveals a reluctance among business owners to implement systems or offer employee benefits designed to reduce sickness and manage absence more effectively. This hesitation may stem from concerns about cost versus perceived immediate benefits. Yet, the lack of a strategic approach to absence management poses risks to business continuity.
Glen Parkinson, SME Director at AXA PPP healthcare, emphasized the significant risk of lost productivity and revenue due to employee absences. He advised that SME owners need to proactively develop systems to handle such absences, as this would mitigate unexpected costs associated with temporary cover and potential losses from the temporary departure of skilled personnel. Parkinson stated, “The spend on employee wellbeing versus their value as an asset to a small business is significantly out of balance.”
Supporting this viewpoint, Adrian Lewis, Commercial Director for Activ Absence, noted the prevalent absence of serious consideration towards strategic absence management among SMEs. He observed, “It amazes us how many SMEs don’t give absence management serious consideration. They worry about absence but are scared to invest in improvements which will save more than they cost!” This sentiment highlights the urgent need for SMEs to move beyond traditional methods and invest in structured absence management solutions.
Finally, Parkinson concluded by acknowledging the myriad challenges small business owners face, including the oversight of employee health provisions. Investing in employee wellbeing is beneficial, outweighing costs in terms of enhanced productivity and morale.
Proactive absence management and investment in employee wellbeing are essential for sustaining productivity in SMEs.
