We can all relate to not wanting to see something undesirable; of looking the other way, pretending it doesn’t exist. Because if we acknowledge it, then we have to actually do something about it, right? But here’s the thing: if your business is losing money, and you identify one of the reasons why but take no targeted action to change it, the likelihood is – as you may have guessed – you will continue to lose money.
One factor that certainly contributes to significant economic losses is absenteeism.
Let’s start off by clarifying that there are very different types of absences. For the purpose of this article, we’re not talking about planned time off, holiday or family and medical leave. What we are talking about is unplanned absence, when employees suddenly take time off for reasons that no-one saw coming, meaning that you, as an employer, are left with no time to make cover arrangements. Some workers go one step further and not only do they not turn up at work, they also fail to notify anyone or offer an explanation of any kind as to why. This can create a logistical nightmare for line managers and colleagues, not to mention the economic cost to your business.
Absenteeism really refers to when, rather than this being a one-off, an employee consistently fails to show up for work when they are scheduled to be there. This can have a noticeable and profound impact on your company’s productivity, staff morale (other workers will soon get fed up if they are frequently having to pick up the slack) and ultimately, your bottom line. There are many possible causes of absenteeism, which can include everything from burnout to bullying, mental health issues or long-term illness. Employers should obviously broach the topic as tactfully and compassionately as possible with relevant workers, before going in heavy handed, as the absence may be a symptom of a much bigger problem within the company, such as bullying or general discontentment, that needs addressing.
That said, there’s no question that businesses pay a heavy price for poor absence management: estimates show the average costs for absence to be roughly 3% of the total payroll figures. To put that into perspective, if we talk about the UK as a whole, factoring in average salaries and workers in full-time employment, we’re talking ballpark figures of some £20bn a year. Despite this, there are studies showing that some 70% of small to medium-sized business owners recognise that absenteeism is affecting their profitability. With around 55% of businesses admitting that they do not know how much their absence figures are, it is definitely an area that warrants closer inspection.
The reason so many employers are unaware that they have a problem in the first place, is because they aren’t using a reliable cloud-based employee absence tracker such as EAC employee attendance system that also provides effortless, effective absence management. Of all the possible causes of absenteeism, not tracking the clocking-in and out habits of your employees is by far the easiest to fix, and will also boost the morale amongst your more dedicated workers who do work the hours they are supposed to and are less than impressed by colleagues arriving late, taking long lunches and leaving early, completely unbeknownst to management staff.
Employee Attendance Cloud by Chronologic is a simple, affordable and highly efficient workforce management system, that can provide you with real-time data on your staff and valuable insights into any absent workers. By looking at employees’ time cards, you can instantly see whether you’re dealing with a repeat offender or a one-off situation, and act accordingly.
EAC employee absence tracker also offers detailed reports on a range of other issues such as labour costs, planned holidays, rotas, etc, as well as an app for remote or site workers.
To find out more, and reduce the amount of money your business loses on avoidable matters such as absenteeism, contact us for a friendly chat and free demo.