Make sure that under Tools - Options - Save the option 'Save AutoRecover info every (for example) 10 minutes' has been selected and that the directory selected under AutoRecover save location still exists.
It may be also a user education issue. If the spreadsheet is critical for the business operations and if the data loss continues, the user should save it say every two hours using a naming convention like myexcel ddmmyy v1.xls, myexcel ddmmyy v2.xls and so on.
Microsoft's knowledgebase article at http://support.microsoft.com/default.aspx?scid=kb;en-us;271513
lists the following reasons for problems in saving Excel files:
? You save an Excel file to a network drive where you have restricted permissions.
? You save an Excel file to a location that does not have sufficient drive space.
? The connection to the Excel file has been lost.
? There is a conflict with an antivirus software program.
? You save an Excel file that is shared.
? The 218-character path limitation has been exceeded when you save an Excel file.
? The Transition Formula Evaluation feature is turned on in Excel.
? The file was created from a template that contains embedded objects.
Good luck!