Most business owners that are employers of labour don’t have the right source of estimating the loss they face from absenteeism of employees. They don’t know how employee’s absence affects their income. The cost of employee’s absenteeism is enormous that if left unchecked, it might ruin the establishments’ financial results.
When talking about absence it will be wise to differentiate it from leave. Leave refers to scheduled absence from work. This could be a holiday or a planned training for example. Unscheduled absence examples are sickness or compassionate leave.
Reduction of absenteeism is something most managers engage in but they could be doing it inefficiently because of their choice of tools. The manual tracking of leave and absence cannot be done adequately and the accrued losses will create a lot of waste and will have negative financial impact. Regardless of the type of absence, there is always a cost associated with recording it in compliance with the company policies, reporting accurately and applying the necessary calculations to allowance, duration and limits.
To overcome all these, it is a good idea to implement an appropriate software tool that helps to monitor, track and calculate employee’s leave and absence. An automated electronic system could cut your leave and absence management costs by up to 67%. This is achieved by a combination of more efficient process of recording and approving leave and absence and control over who is on leave and at what time.
The loss employers incur as a result of unplanned absence is estimated to be around 30 percent of the payroll which is either absent workers, an indirect cost that amounts to the loss of productivity and the rest. Effective leave management software enables employers to control how worker book leave and ensure key workers are always available to ensure the running of the business is not interrupted.
Additionally an electronic system makes it easier to retrieve data about employee’s leave and absence and to easily prove compliance with employee laws and regulations.
Online leave and absence planners often provide a visible calendar which makes it really easy to see if your business may require additional help at certain times due to the level of absence. This therefore makes it an invaluable tool for any business and one that could contribute to the efficient running of the organisation.
As an employer of people, you won’t be able to stop absenteeism but you can effectively manage it by hiring right leave and absence management software and implementing a system that is easy to operate and saves you lots of time and money.