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Winter flu blues may cost R20bn

Jun 10 2007 20:13 Helen Ueckermann

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Cape Town - Absence from work because of illness could cost the economy more than R20bn from June to August this year, and if hidden costs such as loss of productivity and the cost of employing replacement workers are factored in, the cost could be double that.

That's based on research done by companies that manages absenteeism on behalf of employers.

Elaine Steyn, head of integrated health risk management at Lekana Employee Benefit Solutions says the company's Perspectiva data base, which collects data on short-term sick leave, shows that short-term sick leave cost the economy about R1.49bn over the past three years, between January 2004 and Desember 31 2006.

"The figure is based on Lekana's research in 118 companies, employing a total of 564 886 workers.

"About 347 000 employees took 2.9m days' sick leave in this period, while about 1.1m cases of illness were reported."

Johnny Johnson, executive head of CAM Solutions said because of the high incidence of abuse and unnecessary absenteeism it was very difficult to establish what an ideal or normal rate of absenteeism would be.

"For every 250 working days per year, the average worker should not take off more than 3.75 days' sick leave. That works out to about 1.5%. In most companies, however, the rate of absenteeism is between 3.5% and 6%," Johnson said.

Women take more sick-leave than men

Absenteeism is also considerably higher amongst lower income workers, who have fewer responsibilities and more repetitive tasks, than those in a higher income bracket.

"Employees who earn less than R5 000 a month have an absenteeism rate of about 2.3%, while for those in the R10 000 to R15 000 a month bracket it drops to about 1.3%."

Johnson said about 52% of workers countrywide took time off because of flu and respiratory illness in the past year.

The cost of unplanned days off lost year amounted to

  • Eastern Cape: R8.90bn

  • Gauteng: R5.98bn

  • Western Cape: R2.36bn, and

  • KwaZulu-Natal: R2.04bn

Women take more sick-leave than men, and their cost to companies in 2005 was R7.89bn, compared with R8.11bn last year. The main reason for absenteeism amongst women was flu (11.55%).

Cam Solutions calculated that if the average salary is at R5 000 a month, it costs companies about R200 a day for each working day lost.

When indirect costs such as the employment of replacements and lost productivity are factored in, the cost jumps to R600 a day.

 
 
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