The Cost of Absenteeism to Business

The Cost of Absenteeism

It is important for companies to be aware of the cost of absenteeism for profitability and the general health of the business. Absenteeism can be defined as the frequent pattern of missing work or other obligations.  In the workplace absenteeism can be due to several factors including sickness, workplace hazards, sick building syndrome or poor morale.  Research also demonstrates a correlation between absenteeism and low job satisfaction.

Absenteeism: Research and Complete Costs

The Chartered Institute of Personnel and Development (CIPD) estimates reflect that the average worker took 7.6 sick days in 2013, which cost employers £595 per employee.  Research reflects that 66% of human resources executives would like real time data about absenteeism in their workforce because understanding absence trends are they key to reducing them.

When an employee is absent without advanced notification, HR needs to find a replacement that is temporary and immediate or coordinate with other managers to reassign the workload to employees.  The financial effects of absenteeism to business manifests into several costs, including lost productivity, high-cost replacement workers and the continuation of benefits to absent employees.  This is expensive and harmful to staff morale.

Most employers in the UK do not have an adequate system for monitoring absenteeism or addressing the cost of absenteeism.  Without a tracking method it is impossible to apply policy measures consistently as well as to troubleshoot employees whose attendance could be improved with a few simple, low cost changes.

Benefits to Tracking Absenteeism

The benefits to tracking absence rates include increased time for managers previously spent dealing with absences, and better employee engagement due to the consistent application of attendance policies.  Employees can better track and plan their holidays as well, which improves their satisfaction.

The holiday planner is an absence management solution that will save you time and money while improving staff morale.  It’s easy to use and can be set up in minutes.  As soon as one staff member has once less absence per year, the system is paid for.  Can you afford not to have the holiday scheduler?