A detailed report by Kronos Systems Ltd titled The Total Financial Impact of Employee Absences in Europe, discusses the financial impact of absence management in organisations.
Managing employee absence cost is rarely a priority for business leaders. However, a recent survey found the total cost of employee as a percentage of payroll was between 36.3% and 38.3%. Employee absences are linked to lower rates of productivity. This indirect cost must be accounted for to calculate an accurate total cost of absences.
The Total Financial Impact of Employee Absences Survey, was designed to measure both the direct and indirect costs of employee absences. These included costs associated with payroll, replacement workers, overtime and productivity loss.
The Total Financial Impact of Employee Absences in Europe report calls for a clearly defined strategy in absence management to help control costs. A strategy that monitors and manages absences with proper training and automation.
to read the full report and understand the financial impact of absence management in your organisation and ways to reduce it!