Published on: October 20, 2015
Absenteeism costs US companies billions of dollars a year. Unscheduled absences cost, on average, 9.2% of total payroll and these costs are expected to rise with the aging population. Because of this significant effect on the company finances, it is important to find ways to reduce absenteeism. Using intelligent investments in wellness programs and technology, companies can monitor, reduce and react to absenteeism.
The first step to reducing costs associated with absenteeism is to understand your attendance rates and the reasons for lost workdays. While some absences are preferable (no one wants to create an epidemic of sickness in the workplace), the goal is to reduce habitual or intentional absences. Excessive absenteeism results in poor quality, reduced productivity, lower safety and poor morale. All of these directly, and negatively, impact your company finances. Employee engagement plays a role in absenteeism. Studies show that organizations with low engagement experience higher unscheduled absence rates than those with high engagement.
Providing wellness programs is an effective means to counter absenteeism and improve workplace performance. Happier, healthier employees will be more able and motivated to go to work. According to the Center for Disease Control, wellness programs shift healthcare from treatment to prevention by helping employees take responsibility for their lifestyle choices. While programs can be expensive to implement and maintain, they are shown to reduce lost time, decrease work-related accidents and lower medical claims. On average, companies see a 300% return on their wellness program investment.
Another way to combat absenteeism is through the use of technology. Most companies do not have an integrated system to track absences and are unable to determine the financial impact on their business. Using an integrated HR system, like Sage HRMS, makes information accessible and automates business processes.
- Employees can find the employee handbook and a clear absence policy. While a policy itself won’t stop absenteeism, it will make attendance requirements clear and communicate the consequences of excessive absences
- Sick-leave statistics are available so managers can quickly discover patterns of abuse or reward those with superior attendance
- Dashboards provide company, department and individual attendance statistics. These statistics can be incorporated into department goals and performance reviews
Business process automation
- The process of onboarding is improved ensuring that employees and managers know the absence policy. Setting and communicating expectations at the start of employment can stop problems before they begin
- User-friendly self-service portals eliminate HR busywork and offer real-time information where employees can easily input work hours, review their attendance and check company policies
- Time-off management provides accurate and up-to-date attendance information. Employees are able to request and get approval for time off without time-consuming paperwork
- Compliance is maintained for time-off issues regarding family leave, disabilities, military service, religious beliefs and jury duty
- Manager alerts let leaders know when a company-specific threshold has been reached so they can take action immediately
Sage HRMS is an integrated HR management software that will enable you to reduce absenteeism, lower costs and empower your employees. It can help improve Return on Employee Investment® (ROEI®), and build a more profitable and successful business. Contact us today to receive a free HR Management Solution information kit.
To learn more about reducing absenteeism, download our whitepaper, “ROEI®: Return on Employee Investment®, Increase Competitiveness on Your Biggest Asset”.
Mindover Software has been providing award-winning software systems and consulting solutions spanning the business lifecycle to small and medium sized business. Now, with consultants in Dallas, San Antonio and Austin, Mindover Software provides strong local support with the resources of a national company.