London: 1 February, 2005 – More than nine in ten UK employees (94%) believe that their colleagues sometimes skip work when they are not really ill, and over a quarter of employees (27.3%) believe that more than one in three workplace absences is not related to illness, according to Aon Consulting's latest Employee Risk @Work study.

The research, which surveyed 1500 employees across the UK about their workplace, found a number of indicators that not all sick leave may be due to genuine illness. In particular:

• about 15% of respondents said they believe that more than half of sick time is not genuine, and; almost half employees (49%) said more than 10% is not due to real sickness.

Fortunately for employers, 37% of responding workers reported no absences due to sickness in 2003. However, 21.5% have taken more than six sick days during the period, and 8.4% took off 21 days or more.

Unplanned absence, whether short or long-term, results in serious additional costs for employers. Yet despite the associated costs, a significant number of UK companies fail to recognise absence as a major risk; one, which must be managed, like any other.

The Employee Risk @Work study found that almost a third of employees (30.7%) say their employer's efforts to manage absence are below or well below expectations. This view has an impact on employees' relationship with their organisation - the research shows that workers who feel absence is managed well have more pride in the organisation and its products or services, greater trust in their leaders, and value the organisation more highly.

Furthermore, an organisation's efforts to manage absence have a direct correlation with workers' own perceptions of their commitment to their employer. Of employees who say their organisation's efforts to manage absence were above or well above average, 89.4% claim that their commitment to their employer has stayed the same or increased over the last year. Of those who feel absence is poorly managed, 41.5% say that their commitment has decreased.

Ben Thornton, Director of HR Solutions at Aon Consulting said: "Companies need to be robust in managing the variety of risks which they face daily. Absence, like any other, is a risk that must be managed, as part of a holistic approach to ensuring the well-being of employees and the quality of management throughout the organisation.

"The most effective solutions go well beyond simply addressing the issues themselves. Employers should return to fundamentals to uncover root causes. Management behaviours, the relationship between workers and their supervisors, and practical performance management typically lie behind the problems which erode workforce commitment."

Charlotte Mandel, Consultant in HR Solutions at Aon Consulting added: "Many factors can contribute to the frequency and length of employee absence. But absence can be a symptom of a deeper running organisational issue - often related to management styles and the overall relationship between workers and their employers. Our latest research highlights the correlation between effective management and staff retention: when employers are perceived to manage absence and stress well, workers are more committed and less likely to be absent or to switch jobs."

Mandel continued: "Our research also shows that three in ten workers (30%) believe that their line managers lack good people management skills. Indeed leadership skills are perceived by employees to have declined since the @Work research conducted in 2002 and 2003 (39% in 2002 34.5% in 2003). Clearly, employees are losing faith in the leadership skills of their immediate managers, and employers need to take swift action to address this worrying development. Good managerial practices should be a 'must have' throughout UK organisations as they can yield cash dividends in the form of reduced time off, lower costs for recruitment and initial training, and a healthier workforce overall."

Notes to Editors:

1. Conducted in Autumn 2004, the Employee Risk @Work survey collated responses from 1,500 individuals from across the UK. Each respondent is employed in an organisation with 20 or more employees. The survey forms part of Aon Consulting's long-standing @Work research, which annually measures UK workforce commitment. If you wish to receive a copy of the report, please contact Lisa Ford on 0800 279 5588 or email enquiries@aonconsulting.co.uk

2. Aon's 2004 @work research includes a new section on employee risk - it measures how this issue affects workforce commitment levels in an organisation.
   
   The results of the study reveal a correlation between the management of employee risks and staff commitment to the organisation they work for. In essence, where employee risks such as absence, stress and staff retention are perceived by employees to be mismanaged, workforce commitment scores amongst these employees are low. However, where staff perceive that management deal with employee risks well, levels of workforce commitment are higher and employees are likely to be more productive and proud of their organisation. They are also more likely to remain in their jobs, feel a responsibility to their organisation's and line manager's success, and trust in their leaders. A full copy of the report - which outlines the extensive link between employee risks and staff commitment to the organisation - can be obtained by contacting Lisa Ford on the details above.

About Aon Consulting

Aon Consulting is a leading human capital consultancy, helping organisations of every size to attract and keep the employees they need. We advise on all aspects of employment, including health-related insurance and risk; employee compensation and pensions; human resource strategy planning; job design and change management; and staff assessment and legal issues. Aon Consulting is a division of Aon, the UK’s largest insurance broker and provider of risk management services, a major force in reinsurance and the UK human capital consulting market.  Aon Consulting Limited is authorised and regulated by the Financial Services Authority.

About Aon

Aon Corporation (www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 51,000 professionals in its 600 offices in more than 120 countries.  Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results, depending on a variety of factors.  Potential factors that could impact results include the general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, exchange rates, rating agency actions, resolution of pending regulatory investigations and related issues, including those related to compensation arrangements with underwriters, pension funding, ultimate paid claims may be different from actuarial estimates and actuarial estimates may change over time, changes in commercial property and casualty markets and commercial premium rates, the competitive environment, the actual costs of resolution of contingent liabilities and other loss contingencies, and the heightened level of potential errors and omissions liability arising from placements of complex policies and sophisticated reinsurance arrangements in an insurance market in which insurer reserves are under pressure.  Further information, concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s filings with the Securities and Exchange Commission.

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only.