Managing Leave

Employee absence – how does it impact your business?

employee absence - how does it affect your business | A guide by Leave Wizard Ltd

Absence

Whatever business you’re in, if you employ people, the chances are that at some point, absenteeism has caused you a headache.  But are you aware of just what it might be costing you?

By absenteeism, we mean unplanned absences. These are distinct from pre-planned leave, sabbaticals or training time. Unplanned absence costs your business far more than the planned kind, since you don’t get the opportunity to make arrangements in advance.

The true cost of absenteeism is tricky to work out: the obvious part is sick pay, but you will also have hidden costs. Replacement staff tend to be more expensive, either coming at an overtime rate or with fees for agency staff. Unexpected absences also cost you in the time management spend dealing with the staff shortage. On top of this your productivity will be effected; Staff either work shorthanded or less experienced temporary staff take on the role of fully-trained permanent staff. Put together, absenteeism can American businesses as much as $3,600 per employee every year.

Find the balance

It is important though to strike a balance when addressing absenteeism. While you want to crack down on phoney sick leave, going to far can cause unforeseen problems. Recently HR experts have begun to talk of a problem with “presenteeism”. This is when employees attend work when they should be sick in bed. Research suggests that this phenomenon costs UK businesses as much as £4,000 per employee every year[1], mostly due to lower productivity from sick workers, but also from other employees becoming sick after being infected by a well—meaning colleague.

[1] https://www.peoplemanagement.co.uk/experts/research/presenteeism-costs-4000-pounds-per-employees

 

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