Most organizations not tracking costs of employee absences

Thursday, 22 September 2011 16:00

News - Employee Performance

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Previous research has suggested that workers who experience elevated levels of workplace stress tend to take more days off than their counterparts who feel less tension.

This may factor into losses on an organization's bottom line, but a recent Society for Human Resource Management survey reveals that many companies do not keep track of the costs of employee absences.

A total of 79 percent of respondents said they keep track of how many days workers are taking off. However, 61 percent said they do not have a system in place to calculate losses of unplanned absences, and 53 percent reported a lack of tracking for costs of extended time off.

Organizations may want to start paying attention, since an article on a website of the Human Resources Network states that absences may cost as much as 36 percent of a worker's base salary. While unplanned sick days and other uexpected absences accounted for a lower expense overall, they end up costing more in the long run, since vacation days are often factored into a salary.

This suggests that employee wellness programs meant to reduce workplace stress may cut down on the number of sick days workers take, which may ultimately improve a company's bottom line.