By Dianne Flood
Maybe the wind was blowing the wrong way, he thought it was Sunday, or
her sock drawer needed sorting. Either way, absenteeism is a huge, but
largely neglected, problem for employers
Labour costs spring first to mind when a company wants to reduce overheads.
But while initial attempts to control these almost always focus on direct costs
such as wages and benefits or employee numbers, other costs remain hidden. One
of those is absenteeism. Irish businesses' lose hundreds of millions of pounds
each year through absenteeism. Irish workers were absent for an average
of 11 days each last year and 12 million working days were lost, as against
97,000 days due to strike action. The cost to employers was over E635m in wages
and benefits paid for work not done. These figures include sick leave,
bereavement leave, exam/study leave or any other unexcused time off.
Absenteeism is one of the most widespread obstacles to productivity, profitability
and competitiveness. It causes overtime, late deliveries, dissatisfied
customers and a decline in morale among workers expected to cover
for absent colleagues. The indirect costs often exceed the direct. According
to FÁS, the slowdown in economic growth does not alter the trend to an
even tighter labour market in many sectors.