The Cost of Employee Absences
A 2011 survey of absence by the CBI calculated that non-attendance at work costs the UK economy £17bn annually. While that figure is impressive, one more relevant to your company is £692: the average cost per employee of sickness absences to a company, based on a 2008 CIPD annual survey report.
As well as direct costs such as hiring temporary replacement staff or loss of productivity, absences can cause other problems. For example, employee absences can cause a drop in morale amongst colleagues expected to pick up the workload. It can also result in deadlines being missed, which can seriously impact your reputation.
Reacting to Unexpected Absence
As soon as an absence is recognised it’s vital that the employee’s duties are redistributed. Managers should ensure that colleagues making up for someone else’s absenteeism are suitably qualified, have the time and support necessary, and are recognised for stepping in at a moment’s notice.
In some cases a replacement worker may be necessary. Don’t leave finding replacement workers until you are faced with an unexpected absence. Knowing where to turn as soon as an absence is identified will save you time, productivity, and money, so it's essential preparations are made beforehand.
Understanding Why Absences Occur
ACAS highlights three main reasons for absences.
Authorised absences, such as those taken for annual leave, training courses, and other pre-arranged, agreed absences, are the easiest to deal with. You should have time to identify how the absence will impact the company and take appropriate steps to minimise this disruption.
The other two reasons are more difficult to cope with.
Firstly, there are absences caused by people feeling they are unable to come to work because of family or caring commitments. Others may not want to come to work because they don’t feel motivated or aren’t happy at work.
Finally, there are sickness related absences. 80% of absences are due to short-term illness, but research by Aon Consulting in 2010 showed that 1 in 5 employees were not actually sick the last time they took sick leave.
Reducing absences
While it may not always be possible to prove somebody isn’t actually sick, there are still plenty of ways you can reduce absences in the workplace.
For example, if employees know in advance they need to stay at home to let in a repairman are they given the opportunity for flexible working arrangements? Companies permitting flexible working can plan to minimise disruption, while those that don’t risk employees taking a ‘sick day’ at the last minute.
It has also been found that employees who believe their absence will be noticed take less time off. If a member of staff doesn’t call in to explain their absence, it is vital that the company contacts them.
It may be that someone is absent because of something that can easily be remedied; however, unless you have a back-to-work interview where you can discuss why an employee was absent and whether they have any issues, you’ll never know.
The Role of HR Software
The statistics make it clear that businesses failing to monitor and manage absenteeism are losing out on many fronts. However, monitoring absenteeism can be so time-consuming without the right tools that in some organisations it is an afterthought; this is why HR software that helps companies manage absenteeism is indispensable.
As well as being able to record the details of any absence (such as the type, reason, and whether it was self-certified), it can also quickly detect if there are any patterns to the absences. Some software is even sophisticated enough to offer solutions about how to reduce absences, and many packages can function in conjunction with payroll to automatically work out what employees are entitled to.
HR software is loaded with useful features that save valuable time. For example, software can be customised to work in conjunction with any existing absence policies – if a certain number of absences within a given time frame require a one-to-one meeting with management, for example, the software can alert the necessary people.
Strive for better
Few businesses can be content with their level of absences. At a time when budgets are being squeezed and employees are expected to give their all, effective absence management is crucial. Strong managerial skills, flexible working conditions, and pivotal HR software are the ingredients of successful monitoring and, when used together, can help to minimise the problems that employee absences cause.
Written by Michael, a passionate blogger with experience in human resource & direct marketing. Cezanne.
