The cost of staff absence through sickness continues to ratchet upwards. According to the latest CBI/AXA report, workers took an average of seven days off sick last year, costing the economy £13.4bn—with frustrated employers resorting to various tactics to address the issue.  

According to a recent European survey by Mercer Human Resource Consulting, just over a quarter of companies offer their workforces incentives, including vouchers and bonuses, to take fewer sick days.
The Royal Mail famously tackled its high sickness absence rates by introducing a scheme that offered staff the chance to win holiday vouchers—and even a new car—if they didn't take a single day off sick up to the end of January 2005.

As a result, attendance levels rose by 11 per cent. But opinion is divided on the real value of using incentives, or bribery, as some see such schemes.
Steve Clements, principal at Mercer, says: "Some employers believe that by offering incentives to reduce absence, they are encouraging employees who are genuinely sick to attend work."

Others believe they can serve a purpose. Cathy Monaghan, head of HR consulting at business support and advisory service PES, says: "Rewarding people to come in to work just gives you a quick hit on sickness absence levels. But it can serve as a useful benchmark."

Aaron Ross, managing director of absence management specialist First Care, says that a "no absence" incentive plan can backfire. "There is a risk that staff who have a legitimate absence due to sickness and find they are no longer eligible for the incentive or bonus might decide to take more time off work because they have nothing to lose."

Other initiatives designed to reduce the risk of employees being absent due to ill health encourage healthier lifestyles, including subsidised gym membership, alternative therapies and health screening. But Stephen Galliano, CEO at employee wellbeing provider ICAS, insists that the way forward is simply for organisations to demonstrate a genuine concern for the health and wellbeing of their staff by offering employee assistance programmes.

He says: "They need to feel supported. Employers will make better headway in tackling the sickness absence problem by offering access to lifestyle audits through online health risk portals and reports on their individual areas of health risk, than by throwing incentives at it."

But it isn't genuine sickness that frustrates employers; it is malingering, which they suspect accounts for about 12 per cent of sickness absence, according to a CBI survey. Here, the stick can be more effective than the carrot, says PES's Monaghan. "All organisations, regardless of their size, should implement a sickness absence management policy that includes a back to work interview," she says.

"It is much harder to say 'I was ill' in a face-to-face discussion with your manager if you know you were not. And it does serve as a deterrent to those tempted to throw a 'sickie'. On the other hand, if you really have been ill, it is nice to know that your boss cares enough to ask you about it."