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Counting the Cost of Absenteeism

So what is absenteeism? It is simply when an employee of a company does not come to work due to scheduled time off, certified illness, uncertified illness, injury or any other reason which is deemed absenteeism. Both the direct and indirect impact of absenteeism is too significant for companies not to be measuring; when attendance is not being measured, it cannot be managed.

So what keeps employees away from work? According to a 2007 survey, the most common causes of unscheduled absenteeism are shown in the table below.

Absenteeism Graph

The challenge facing both employees and employers is that personal and family demands are greater than in the past whilst at the same time employer demands have increased. Employers are expecting more commitment from employees who have to do more due to fewer staff and economic pressure. At the same time your workers need time to care for themselves and their families. Employers who accommodate working from home, flexible hours and flexible annual leave will benefit from lower-than-average absence rates. Employers need to find initiatives to help their employees balance the dual demands on their professional and personal lives.

It is a fact that the more unhappy employees are, the more reasons they'll find not to come to work - morale influences the reasons employees take unscheduled leave. There is a direct connection between the morale of a workforce and the degree of absenteeism present. Companies reporting poor to fair morale are more likely to experience unscheduled absenteeism than those with good morale - up to 70% of unscheduled absences (excluding illness) are by employees with poor or fair morale.

There needs to be balance - too much pressure placed on employee absenteeism could result in employers being faced with presenteeism issues - when employees come to work even though they are ill. Although their intentions are good, they will deliver poor productivity, increase safety and quality risks and risk infecting other employees. Some of the reasons employees show up for work even though they are sick are:

too much work no-one available to cover their workload don't want to use paid annual leave want to save sick leave in case they need it later

The problem of presenteeism can be solved by ensuring the workplace culture and policies do not encourage the wrong behaviour. Employers who enforce absenteeism policies with disciplinary action make it difficult for the employee to do the right thing. Employees also need to know that absence is taken seriously and that the employer does want to help. Employers can do this by creating a culture of trust at work, where managers are approachable to openly discuss matters such as stress and family responsibility.

Companies should be monitoring their absence rates carefully, measuring the true cost and causes and looking for solutions. Measuring the cost is not just the salaries paid to employees who are absent, but also the cost of productivity lost, overtime required to fill the absent employee's position and any other costs associated with absence.

Finding the right solution can be a challenge. Whether your company is a growing mid-sized venture or a global enterprise with tens of thousands of employees, using a computerised leave management system which integrates with your Payroll will enable you to measure what unscheduled absenteeism is costing you. Educos offers an innovative mix of web-based solutions and outsourcing options which will enable you to do more than manage the administrative challenges associated with leave and absenteeism. Using the tools that are available, you will have all the information at your finger tips to measure not only your absenteeism rates and trends, but also analyse the cost that will impact the bottom line.

With more than 25 years' of experience, we continually advance our solutions to meet your needs today and in the future, ensuring that our solutions allow you to realise your software's strategic potential. Our fully integrated, flexible and totally customisable solution for managing all aspects of HR, Leave and Payroll management on an in-house, SaaS or outsourcing model is best suited to your requirements. Our solutions are quickly deployed and can be tailored to provide the flexibility and process automation that is required to run your business more efficiently. Our solutions are able to integrate with any other third party software and part of our implementation strategy is to define what system integration would be required and include this as part of your total solution.