Firms should hire televisions and lay on coffee and croissants for workers to watch World Cup soccer matches in the office.
Staff should also be given the chance to start work later if they want to stay at home to follow the fortunes of England and the Republic of Ireland, it urged.
Richard White, managing director of recruitment firm Resource Management, said: "Trying to ignore the World Cup is not going to work, yet we are finding many companies are putting off making a decision.
"The smart firms will incorporate the World Cup into their business and human resource plans and will suffer less as a result.
"Companies can avoid mass absenteeism if they face facts and take steps to accommodate the football fans among their staff."
Meanwhile an employment lawyer said firms should start planning now to cope with workers taking "a sickie" during the World Cup.
Unauthorised absences on match days in June would be a "major issue" for companies, said Rachel Jones, of law firm DLA.
Bosses would have to decide how to cope with multiple requests for annual leave because of the possible impact on productivity and safety.
"This could leave a workplace sparsely populated, which is a potential health and safety risk for the remaining staff," said Ms Jones.
She advised employers not to take harsh action against staff taking time off to watch the odd soccer game.
She said: "While organisations must be prepared to act on instances of unauthorised absence to prevent an occasional incident becoming the norm, care must be taken not to use a sledgehammer to crack a nut. A single isolated short period of absence is unlikely to justify dismissal."
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