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Absenteeism probably costs your company a lot more than you might imagine. To fully appreciate this cost, you need to add up the R25 000 bundles...

 

Many companies think of absenteeism as a minor issue that doesn’t affect them that much. But when employees are off work one of two things will happen.

 

1.Your work will not get done, because you are understaffed

OR

2.You make sure that you have a few extra employees to cater for absenteeism

 

Option1 will ultimately result in unhappy customers, because you can’t deliver on your promise, or lost revenue because your customers go elsewhere.

 

Most companies choose Option2 because they strive to satisfy their customers' needs, but every extra employee that they hire comes at a cost of at least R25 000 (calculated at R8.50 per hour plus benefits). Now it is understandable that companies need to add some sort of a buffer to cater for absenteeism, but if your absenteeism is not tightly controlled this buffer may be artificially high, with the resulting cost implication.

 

By using LabourPro® you will improve attendance, and your employee buffer can be adjusted to correspond with the amount of legitimate absenteeism. As the buffer reduces, you can start stacking the R25 000 bundles onto your bottom line.