Absenteeism at work: a rising trend

Today, France has a high rate of absenteeism from work, a phenomenon reminiscent of the great resignation in the United States. This trend in absenteeism has been on the rise for several years, and has worsened since the Covid19 health crisis. So what are the causes? How can we prevent the risk of absenteeism and reverse the trend? This is what we answered during the webinar with myRHline on June 30, 2022.

Absenteeism at work in a few figures, key indicators

Before going any further, it's important to clarify what we mean by absenteeism. Absenteeism is the repeated or systematic absence of an employee from the workplace.

Average absenteeism rate

In 2021, the average absenteeism rate was 6%, compared with 7% in 2020. However, this decrease is "trompe l'oeil" due to the pandemic. Nevertheless, we can see that the average rate in 2021 remains above that of 2019, which was 5% absenteeism in France. To get a real idea of the evolution of this trend in absenteeism, we'll need to observe the figures over the long term. That is, in at least 3 to 4 years' time.

Day indicator

This indicator consists of observing the average number of days of absence per employee over a year. We tend to use an absenteeism indicator based on duration. This gives us an idea of the amplitude in terms of absence duration. And therefore a better measure of the impact this could have on a company.

In 2021, the days indicator was 23 days (i.e. almost 2 days per month), whereas in 2020 it was 25 days. However, like the average rate, this drop is somewhat skewed by the pandemic. Nevertheless, the 2021 indicator is still higher than that of 2019, which was 19 days (or 1.5 days per month).

This indicator can also be used to obtain the stopping frequency of the French population. In 2021, this was 37%.

Factors behind absenteeism in the workplace

To better understand the phenomenon of rising absenteeism, we have also looked at the factors behind this trend:

Extending the retirement age.

The 2010 Ayrault pension reform pushed back the retirement age by 2 years. From 60 to 62. On the one hand, this has increased the duration of daily allowance (IJ) and disability pension payments. It has also led to an aging population. And finally, the risk of death has increased.

Disengagement from social security

Since 2012, Social Security IJs have been 50% of salaries up to 1.8 SMIC. Previously, IJs were 50% of salaries up to the limit of tranche A.

Lower rates

This has had an impact on salary continuation by both employers and insurers, due to a greater or lesser increase in certain cases depending on the base salary.

Insurers are obliged to make provision forwork stoppage, long-term illness, disability and death. Since these are all possible consequences of the initial stoppage. Whereas the rates used to make it possible to anticipate the financial interest needed to generate provisions. As rates fall, the cost of provisioning rises.

Absenteeism at work: consequences and solutions

Consequences

The increase in absenteeism is having an impact on provident and healthcare plans. It's true that the rates are temporarily maintained in calls for tender. However, once this period has elapsed, insurers require companies to make up the difference in rates. Indeed, the impact of absenteeism on group benefits represents 3.5% of the payroll.

Absenteeism also has other consequences:

• Social impact;
• The impact on insurance contracts, particularly for long-term work stoppages of 30, 60 or 90 days;
• On the cost of absenteeism;
• On company organization.

Solutions

To remedy this trend in absenteeism. We have the work stoppage deductible. This lever enables the company to delay the time at which the contract becomes involved in compensation. The company can try to reduce either the frequency or the average cost. Or ideally, both. Prevention is the best way to reduce frequency. To reduce the average cost, it will be necessary to take action to help people return to work.

We also have tools such as DSN and HRIS.

Gerep also offers its dynamic social barometer to help companies deal with absenteeism. The dynamic social barometer not only measures stress, but also motivation, commitment and atmosphere in the workplace. In addition, it helps to identify employee development, maintain contact with an employee who is apprehensive about returning to work after a long period of absence. The BSD can also be used to anticipate future risks. Simple actions such as the introduction of telecommuting can have a positive impact on absenteeism.