26 October 2018
much is absence costing your business?
According to research by the
Chartered Institute of Personnel and Development (CIPD), unplanned absence
costs UK businesses £29
billion a year. For private sector companies, this equates to £522
per employee on average, while it costs public sector organisations £835 per
This is undoubtedly
significant in itself, but there’s more that businesses should consider than
just the financial impact of team members missing work.
Let’s take a closer
look at what staff absenteeism really means.
A knock-on effect for your customers
It’s not always
possible to arrange cover for missing team members, especially when their
absence is unexpected. A shortage of labour can leave customers or clients
without adequate service provision, particularly when it comes to public or
Sometimes, you may
have no choice but to postpone the delivery of services due to staff absence,
which can easily result in customer dissatisfaction, and even a loss of
business. These days, consumers are spoiled for choice in most commercial
areas, so it needn’t take much to send even usually loyal customers in the
direction of your competitors.
More pressure on the rest of the team
Absenteeism can often
mean that the rest of your team have to pick up the slack, covering an extra
workload as well as carrying out their own duties. Potentially disgruntled
staff rarely do their best work, and those trying to deliver the work of two
can find their time and concentration levels too poorly impacted to do either
to their full ability.
On top of the
productivity hit, a missing member can also mean more overtime amongst your
remaining team, costing your business in wages and staff morale. Having to ask
your staff to cover for a missing colleague can even result in further
unplanned absence, especially if team members end up feeling overworked and/or
Time spent on administrative work
Like many aspects of human
resource management, staff absence must be properly logged. While this may not
appear much of an outlay on the surface, it doesn’t take much for this time to
rack up – after all, the absenteeism stats speak for themselves.
drawn away from their primary focus to process staff absenteeism leaves your
team members with less time to do what it is they do best.
Sourcing and paying for replacement
Being a staff member
down over an extended period can lead you to need extra support in the form of
a temporary replacement employee. This kind of role is expensive and comes on
top of the wages your business may already be paying to your absentee.
What’s more, your
managers may have to spend time training your replacement before they can
properly get started, upping your overheads still further.
Minimise the effects of absenteeism
with time and attendance optimisation
Staff absence can take
a heavy toll on any business, but it doesn’t have to. The ability to track time
and attendance enables you to identify patterns of behaviour, potential
pressure points and other factors that may be contributing to levels of
unplanned absenteeism within your organisation.
Backed up by real-time
data, an unobtrusive and intuitive time and attendance
solution can help you reduce the impact of missing staff members,
while also automating your workforce management processes.
Find out more about
what our time and attendance hardware can help you achieve by getting in
touch with us now.