03 Jul The Cause & Cost of Absenteeism
What Causes Absenteeism and how does it affect a company?
Absenteeism is one of the biggest and most persistent obstacles to productivity and profit in a company. There are a number of factors that cause employees to be absent from work. Sickness, family problems and lack of motivation are all responsible for causing employees to be absent from work. Repeated and unplanned absences over an extended period of time can eventually begin to adversely affect a company’s overall performance.
Below are two of the most common causes of unplanned employee absences:
- 1. Disengagement: Employees who are not committed to their role or are not satisfied are more likely to miss time. They have less motivation to go to work and therefore are at a higher risk of taking unplanned absences.
- 2. Lack of work life balance: It is hugely important that employees have a good relationship between their work life and personal life. Employees who are over worked are more likely to take unplanned and unscheduled absences to maintain some balance in their lives.
Employees who engage in unplanned absenteeism are putting an increased cost on their employer.
Some of the main costs of absenteeism include:
- The high cost of replacement employees.
- The administrative cost of managing absence and a poorer service provided to customers due to shortage of labour.
- Absenteeism causes overtime, late deliveries and dissatisfied customers. Furthermore, employee morale is affected as other employees are expected to compensate for their absent co-worker.
In the United Kingdom, absenteeism is costing businesses billions each year. The average employee in the UK take 10 unplanned absences every year.
What steps can employers take to minimise the negative effect of unplanned absences?
Ultimately, companies need to implement a workforce management system to track and analyse employee absence behaviour. By identifying and understanding patterns of absence companies can take the necessary steps to reduce both the financial and indirect costs of abseentism.
Find out more about reducing absenteeism in the workplace and download our dedicated whitepaper here.
Softworks can help your company to achieve it’s absence management and attendance tracking goals. Get in touch with us here for a Demo of our Workforce Management Solutions.
Find out more about our Absence Management Solution here.