The old saying "absence makes a heart grow fonder" is unlikely to ring true with employers who read the latest CBI report on employee absence.

The CBI's Pulling Together absence survey 2001 shows that employee sickness absence costs about £1,000 per employee per annum.

Roger Treherne, regional head from Marsh in Southampton says the average level of sickness absence across all sectors is 7.8 days but the public sector suffers 10.2 days per employee per annum - up a day on last year. A particularly disappointing figure as the government is looking for reductions of 30 per cent by 2003.

"The survey shows many employers have yet to get to grips with this major cost. Most employers could reduce costs by about 20 per cent within a year,'' he said.

Marsh's specialist Employment Risk Services (ERS) practice says it is often a difficult topic for clients to address but very worthwhile - not just for the cost savings. Managing absence effectively, provides benefits for the employees as well as employers - it is after all the remaining employees who often bear the adverse effects of a colleague's absence. Stress is an increasing factor in absence and strategies to reduce stress within an organisation will also benefit efficiency.

Andy Welch, head of ERS said: "While the immediate cost benefits of effective intervention on absence and stress are significant, the longer term benefits in improved productivity can give employers the competitive edge both in pricing and staff retention."