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Surging employee sick leave strains small business owners

August 11, 2022

Nearly three-quarters of small business owners say they’re concerned about growing absenteeism. (Source: 1News)

Absenteeism due to unwell employees is causing huge concern to nearly three-quarters of our small and medium business owners, according to a recent survey.

Doug Jarvis says he’s up at 4am working 14-hour shifts every day at his Papamoa butchery.

“I’ve had a couple of incidents when I’ve nearly had to close the shop and if that happens it’s disastrous," he said.

READ MORE: Unemployment rate steady, wages up 6.4% - Stats NZ

“I've still not had a day off for the last two years.”

Owner of The Elephant Wrestler's Pub, Steve Shute, says the staff shortage has meant he’s had to close the Auckland business two days a week.

“[It] used to be thriving, seven days a week.

“Customers have been quite understanding but it’s going to come to a point where customers are like, 'Why don't you have enough staff, why are we waiting?'”

Of the 500 small- and medium-sized operators surveyed by MYOB, 72% reported they were under increasing pressure due to staff shortages. The questionnaire also found that one-quarter had a lack of skilled employees and that owners resorted to working extra hours themselves or asked other staff to work overtime.

One-fifth said they simply had to reduce their services.

CEO of Hospitality New Zealand, Julie White, says the growing absenteeism is hitting their sector particularly hard.

“We've been experiencing this more than most because our workforce generally lives together so when they have a household contact, they actually take out that entire workforce for that venue operator.

“I spoke to one member who has had three days off this year.”

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