General Information
Home | About Liquid HR | What is Liquid HR? | Join us Now | Terms of Use
Pricing | Latest News | In the Press | Contact us
What is Liquid HR?
Overview | Individual Solutions | Total Solutions
Employment Law
Employment Law - What we offer | Employment Law - Why join | Employment Law - Useful Resources
Health and Safety
Health and Safety - What we offer | Health and Safety - Why join | Health and Safety - Useful Resources
HR Support
HR Support - What we offer | HR Support - Why join | HR Support - Useful Resources
The Cost of Absence
23rd April 2009
Within the current climate, businesses are looking at a variety of ways to save costs to ensure their business succeeds through these difficult economic times. one of the areas that can be reviewed is absence, which is sometimes forgotten as an overriding cost.
When reviewing sickness absence it can provide some starting figures and can be an area within the business that could source significant cost savings. By managing the process on a regular and consistent basis, companies will be able to see very clear achievements both financially and through the motivation of their employees.
The hidden costs of absence
There are several hidden costs for employers to consider, such as the employment of temporary staff or the payment of overtime to employees taking on additional duties. The costs of enhanced company sick pay, as well as benefits including PHI and BUPA, can also increase company premiums and will increase overall costs. Consistent absence among colleagues can also affect team morale and motivation. This can link to a loss of production and the inability to meet client demands/expectations, thus leading to an overall reduction in company profitability.
In November 2008 The Economic & Labour Market Review Vol 2, No 11, reported 'that sickness absence rates fluctuate through the year. They are lowest in July to September and highest in January to March or October to December'. In the twelve months ending June 2008, there were 5.8 million scheduled working days lost to sickness or injury. This accounted for 1.5 per cent of scheduled working days.
If handled correctly the review of absence in the business could provide some resourceful results. Although it might seem easy to ignore the figures, taking no action can lead to further issues and rising costs.
Measures to reduce absence
The business should begin by reviewing their current absence statistics to identify the impact that sickness has on the organisation. The first review can be the monitoring of short term absences and procedures can then be put in place to deal with issues that arise moving forward.
Policy and Procedure
Ensure that the business has an absence management policy and procedure in place and ensure that all employees are fully aware of what is expected of them. Communicate to employees that your intentions are to monitor absence going forward.
Statistics
A summary of your statistics can be provided to employees in order for them to gain an understanding of the direct impact that absence has on the business, for example:
- The cost of sickness for the last 12 months
- The average number of sick days in a particular work area
- The average number of sick days across the business
Return to work interviews
A return to work interview should be carried out for every absence and should be structural and factual. The interview needs to be carried out in a supportive and positive manner. Intrusive medical questions should not be asked but the manager should establish the basic cause of each individual absence.
Identify the cause or causes of an individual's poor level of attendance and whether an existing medical condition or personal problem may be the contributing factor for example. By identifying the root cause this will allow the manager to deal with the matter more efficiently.
Provide support to the employee, where appropriate, thus potentially increasing his or her motivation and loyalty. Establish whether or not an employee's level of attendance is likely to improve within a reasonable time frame.
Identify any problems inherent in the workplace that are contributing to employee absenteeism generally, and ensure that these are addressed.
Patterns of Absence
For more information on what liquid hr can do to help your business, click here