Oct 24 2009
Difficult economic times have put a strain on the business world, forcing companies to re-organize their business plans. Employers are working diligently to establish innovative, efficient ways to better manage costs and reduce or eliminate unnecessary expenses.
One of those expenses familiar to most of us is 'Employee absenteeism.' Studies continue to shed light on the fact that the cost of employee absence has considerable impact on a company's productivity; yet, the majority of companies have made no attempt to analyze or control these costs!
According to the International Public Management Association for Human Resources:
"The cost of absences represents a growing burden on employers, and many organizations are using absence managers to help them track, manage, and reduce absences throughout the organization. According to CCH Inc., a Rosewood, Ill., company that provides employment law information for human resources professionals, unscheduled employee absenteeism costs an average of $755 per employee per year."
While it would be impossible for businesses to plan for every leave occurrence among their employees, one aspect they can control is the ability to implement programs that will effectively:
- Track and manage employee leaves
- Reduce employee absences and assist on the return to work process
- Measure and reduce direct and indirect leave related costs
Gradually, more employers are introducing work-life, wellness, and absence control programs in an attempt to counteract the increasing costs of employee absenteeism. Companies that do have these programs in place are quickly realizing the benefits of tracking, measuring, and better managing their workforce. By implementing an integrated, systematic approach to managing human capital leave, employers can experience a multiple return on their investment within the first year. This ROI is accomplished by simply reducing lost work days and overtime pay.
Efficient management and control of paid leave benefits can prove to be very beneficial to the bottom line. Use of a consistent absence management approach eliminates costly variation in practices, improves operational efficiency and ensures appropriate resource allocation and management.
SOURCE pihms, Inc.