Katherine Rich: Business NZ CEO on the increase in people taking sick leave

Those who are in work are taking more sick leave. 

New research by Southern Cross Health Insurance and Business NZ has found an average staff member took almost seven days of sick leave last year, up 1.4 from two years earlier. 

It's costing the country about $4 billion a year. 

Business NZ Chief Executive Katherine Rich told Mike Hosking the rise in leave entitlements has had an impact, but many employees are also doing what they’ve been told, staying home when sick so they don’t pass it onto their coworkers. 

She says post Covid, people think more about their wellness and are less likely to solider on like the Codral ad.  

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Episode Transcript

Speaker 1 (00:00):
Sick leave. Would it surprised you to learn averages now
six point seven days per employee per year. A couple
of years ago it was just five point five. It's
costing US four point two billion dollars a year. Catherine
Richard's Business New Zealand's Boston is with us. Good morning,
Good morning. So when we deal with these numbers, are
they sick or are they slack?

Speaker 2 (00:18):
It's possibly a combination. There are many drivers for absence,
non work related illness, caring for a family member. But
employers did report that some people are taking paid leave
when they're suspected for not being actually unwell. But that's
always been the case when we've had humans in the mix.

Speaker 1 (00:37):
Yeah, is it part of a malaise in this country?
If we're all in a bit of a funky you're
more likely to go you know what. I can't be bothered,
especially given it's a Monday.

Speaker 2 (00:46):
The combination there certainly has been a change in the
workplace culture, and in some cases employees are doing exactly
what they've been told to do. If you're unwell, don't
come to work and splutter it all over your colleagues.
But with their rise and leave entitlements. We do think
that it's reflected in the jump in the average absence

(01:07):
of six point seven days per employee per year, and
that's a big jump since twenty twelve when it was
about four point two. That has a material impact on
the economy and of course productivity of not just businesses
but the whole economy.

Speaker 1 (01:22):
Did the five to ten days sickly by law cause
a problem.

Speaker 2 (01:28):
It's meant that in some cases the extra days are
meeting the needs of workers because, particularly with an aging
population and caring for dependent family members, people have been
able to take leave for that. But it's certainly has
contributed to an increase in the average amount of leave taken.

(01:52):
But post COVID people really think about their wellness and
they're less likely to soldier on the cold lad. They're
more likely to think, am I'm going to be productive?
If not, I'm going to stay home? Yeah?

Speaker 1 (02:04):
Because here's the problem when you site look, it's four
point two billion dollars worth of damage to the economy.
That's fine, but you can't what do you do about it?
There's nothing you can do about it, is there? Unless
unless you're going around knocking on the door and going
right prove it.

Speaker 2 (02:17):
It's very hard to measure and so in terms of
evidence of people pulling sickies, it's always anecdotal. But it's
up to leadership in businesses. Businesses want to have a
healthy workplace. They want people to come along to work
and be satisfied and be productive. So it's a combination
also of what businesses are doing to keep people well.

(02:40):
And businesses are very innovative these days. They've got programs
from vaccinations to fitness programs, gym memberships, a whole range
of things. Working from home and additional flexibility has improved retention.
But it's a combination leadership and also reminding people that
they're there is an ambition for all of us to

(03:03):
keep the economy going and make sure our business.

Speaker 1 (03:05):
Is thriven and do Catherine appreciate it. Business New Zealand CEO.
There's a warning in Britain, speaking of which this morning,
the number of second disabled people has increased eight hundred
thousand in the last year and it's a crisis. For
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