August 20, 2014
How much is employee absence really costing your business?
It’s coming to end the August and hundreds of UK employees have been on their summer holidays.
Unfortunately, it’s a well-known time for workers ‘pull sickies’ on their first day back. Employee absence is a constant problem – and it’s vital for every organisation to monitor and control it.
The CBI/Pfizer Absence and Workplace Health Survey found that absenteeism is costing the UK economy a staggering £14 billion a year.
According to CIPD, the cost of sickness absence has climbed to almost £29 billion a year for UK organisations.
The impact on businesses
We are all aware of the problems that come with absenteeism, but many managers don’t understanding what it’s costing them.
Employee absence might include sick time, late arrivals and early departures, extended breaks, statutory leave and union-negotiated leave.
Research by Proudfoot Consulting found that absence accounts for 20-40% of lost productivity per day. But it’s not just the financial implications – it also puts extra pressure on the workforce generally – with negative effects on engagement and productivity.
Low morale, overtime and additional HR costs are also factors.
Every type of absence has its own costs and risks – and since it’s difficult to track trends, it’s impossible to understand why it’s happening.
Business leaders need to be able to highlight attendance issues to so that can react quickly to stop it hurting their business.
So what should I do?
You need to be able to manage all absence-related policies comprehensively, and minimise risk impacts.
If you want more information on this topic, or want to find out how you can improve your absence problems download our Employee Absenteeism whitepaper.