Keep track for absenteeism with pay Solutions cloud-based Leave Management system
Would it surprise you to know that the average cost of employee absence from work result to an equivalent of 35% of your employee’s salaries? The net cost of absenteeism in terms of productivity is 19%, according to a study conducted by MERCER. Statistics South Africa estimates that the cost of absenteeism amounts to roughly 12 billion rand per year. In a market that is taking particular strain under the current economic conditions, high rates of absenteeism can cost your company financially as well as through lowered productivity, be it a small company, medium business or a large corporate organisation. While the cost of absenteeism and the corresponding loss of production can be quantified, the issue around how to manage leave and absenteeism within your company is less measureable. With the inevitable split between HR departments and systems and those of payroll, within many organisations, calculating the cost of leave management is an area which is particularly affected as a result.
Hоw Employers Cаn Deal Wіth Employee Absenteeism
Employee Absenteeism – One of the biggest investments а business can make are their employees, and when employees are absent for lengthy periods the cost to the company can be great. The cost is not only measured in terms of loss of production and pay, but аlѕо employee morale. Whеnеvеr аn employee іѕ оff sick, thеrе іѕ а knock-on effect оn thоѕе colleagues whо hаvе tо cover fоr them.
In fact, 75 percent of HR professionals say employee absences have a large impact on revenue and productivity, according to a study last April by Kronos and the Society for Human Resource Management of 700 of its members.