Streamlining operations has become the norm for organisations trying to stay afloat in the current economy. One area often overlooked when cutting costs is absenteeism. Not only does it affect productivity, but staff morale and customer service levels are also compromised.
Determining the exact cost of absenteeism is almost impossible using out-dated manual systems which are difficult to implement effectively, but accurate costings are needed to provide a baseline from which to track improvements and cost reduction.
In the Mercer 2008 Pan-European Health & Benefit Report, 21% of the 800 countries taking part across Europe said they had no access to good data on absence levels in their organisation, never mind the causes or costs.
So what are the costs of absenteeism?
The absent employee’s salary, paying overtime rates and hiring temporary or agency staff are the obvious costs of absenteeism and are easy to calculate, but what about the indirect costs of lost production and time spent on administration?
The European Working Conditions Observatory estimated in 2010 that the indirect costs of UK absenteeism amount to £27 billion a year. Using a powerful web-based application like LeaveMaster puts you in control of workforce costs.
LeaveMaster monitors individual employee absence, providing a reliable source of information from which to accurately calculate costs. You can use this benchmark figure to track improvements and reduce costs in the long-term.
For more information on how LeaveMaster contributes to cost reductions, call 0800 334 5630.
Recent research by Canada Life Group revealed the ongoing problem of absenteeism during national sporting events. Almost 1 in 10 of respondents said they would consider taking a day off sick to watch the World Cup this summer.
Equivalent to 2.4 million employees when replicated across the country’s workforce, the effect on productivity of this type of non-legitimate absence is significant. In the case of the World Cup, success of the team would have resulted in an increased level of absence, with 61% of respondents saying they would take time off to watch the semi-final.
Are flexible working options the answer?
Flexible working was named as the option most likely to deter non-legitimate sick days. Thirty-five per cent of respondents said they would be less inclined to take unnecessary sick leave during the World Cup if flexible working arrangements were in place, with 30% citing the ability to work from home as something that would make a difference.
It’s not just the World Cup that’s the problem though. All national sporting events are a distraction whether it’s the World Cup, Wimbledon or the Olympics.
LeaveMaster supports your efforts to reduce absenteeism at these times. You can keep track of individual employee sick days and see if there’s a pattern emerging. LeaveMaster manages all types of leave including flexible working arrangements, so it’s easy to find out who is in on any given day.
Download our white paper or take a virtual tour to see how LeaveMaster can help your organisation deal with non-legitimate sickness absence.
A report by the Office for National Statistics has revealed that among larger public sector organisations, staff working for a health authority or NHS Trust had the highest levels of sickness in 2013. ‘Sickness Absence in the Labour Market’ reports that 3.4% of working hours in these sectors were lost due to sickness.
Based on occupation, the highest level of sickness was in the ‘Health, Leisure and Other Services’ group, which reportedly lost 3.2% of working hours. Workplace size was also found to have an effect on sickness statistics, with employees in organisations of between 50 and 499 members of staff being 31% more likely to take sick leave than those working in a firm of fewer than 25 staff.
Most common reasons for sickness absence
Back, neck and muscle problems were reported to have been the cause of the most days off - 31 million days were lost due to these issues. Minor illnesses were second in the list at 27 million days, with stress, anxiety and depression being blamed for 15 million days of sickness absence in 2013.
Effective management of sickness absence plays a large part in boosting your bottom line. Lost days of productivity quickly add up to increased costs and reduced profit levels.
LeaveMaster helps you manage high levels of absence by gathering and analysing data, providing reports and valuable insight into patterns of disruptive absence. Take a tour of the software today, or phone us to book your live demo.
It’s estimated that a third of UK businesses with 20-80 employees lose £10,000 to £25,000 per year due to absenteeism. When you consider how many firms still use paper-based systems to record leave and absence, it’s not surprising that this figure is so high.
Here are some of the reasons why paper-based systems are so costly in terms of time and money:
A single computerised system is the best way to manage absenteeism. LeaveMaster has everything you need – full automation of the booking, processing and monitoring of leave. It will save you money, free up managers’ time, and reduce the overall administrative burden.
Quick to set up and easy to use, you can access it from any location with an internet connection. Customise it to suit your business needs and enjoy ongoing support from our technical team.
A practical solution
So how does LeaveMaster differ from a manual system?
It will increase operational efficiency, boost productivity, and you’ll soon see a return on investment.
Take a tour of LeaveMaster’s features and benefits, or download the white paper to see how it can help.
Minor illness such as coughs, colds and nausea were the most common reason for sickness absence in 2013. So says the ‘Sickness Absence in the Labour Market’ survey carried out by the Office for National Statistics.
This type of short-term absence accounted for 30% of the reasons given for sickness, with 27.4 million days lost productivity being endured by UK businesses as a result. Don’t let short-term sickness affect your bottom line. Get to grips with all types of absenteeism using LeaveMaster.
See the big picture
You can track each employee’s sickness record, gain an overall picture of workforce absence and regain control of administrative costs. Quick to set up, LeaveMaster automates everything from leave applications to in-depth reporting.
Administration of short-term sickness is a huge drain on managers’ time. Sifting through piles of paperwork or monitoring absence using Excel spreadsheets isn’t easy. Not only are systems like these burdensome, they waste the expertise of key staff.
Deter persistent offenders
LeaveMaster automatically triggers an alert when employees exceed a pre-set number of short-term absences. Managers can act quickly to deter unwarranted absence and see at a glance who might be abusing the system.
LeaveMaster is a powerful application that puts you back in control, and because it’s web-based you have access from any location with an internet connection.
Take a tour of the software, download our white paper, or book a demo to see exactly how we can help you.
The 2013 Absence and Workplace Health Survey ‘Fit for Purpose’ found that 12% of sick days taken by UK employees are not legitimate. It’s estimated that this problem alone costs the UK economy £1.7 billion every year.
Some employees perceived an entitlement to paid ‘sick’ leave, almost as if it was an extension of their annual leave. These issues can be tackled head on using state-of-the-art technology that minimises costs and puts you in control of workforce absence.
Manual systems are inadequate in dealing with large numbers of leave applications. Forms quickly start to pile up and are easily lost, putting stress on managers who would be better employed dealing with operational or strategic issues.
An inherent problem of manual systems is the difficulty in obtaining a clear picture of persistent absenteeism. LeaveMaster lets you see at a glance who has been off sick and when, tracking each instance of sickness for every employee to get a long-term view of their attendance record.
Profit levels are affected
Taking single sick days before or after a weekend, when a national sporting event is taking place, or simply because they don’t feel like working has a significant effect on your bottom line. According to the CBI survey, in 2012 the average total cost for each absent employee was £975.
Download our white paper or take a tour of the software to see how LeaveMaster can help your organisation. It’s simple to use, requires minimal training, and provides a quick return on investment.
According to the Office for National Statistics ‘131 million days were lost due to sickness absences in the UK in 2013.’ Although reduced from 20 years ago, this figure adds up to a significant loss of productivity and reduction in growth for many companies.
Causes of absence in the workplace include:
What can be done about it?
Providing the tools to improve employees’ physical and mental health is a start. Formal ‘wellness’ programmes are a valuable workplace benefit not offered by many SMEs in the UK, as this research by CIPD confirms:
“44% of people we surveyed said their organisation does not promote health and well-being.”
Flexible working arrangements offer employees greater work/life balance. A degree of autonomy is also known to increase job satisfaction, but what happens if you can’t afford to implement health programmes or flexible working patterns?
Long-term control of absenteeism
Keeping an eye on levels of absence over the long-term certainly puts you in control, but it’s not possible to do this effectively using manual systems.
LeaveMaster software provides you with detailed attendance information for every staff member, helps tighten control of absenteeism, and makes management of a growing workforce easier.
The Bradford Factor is used to control absenteeism. It’s a formula that calculates a ‘score’ for each employee, and is designed to highlight patterns of absenteeism that need to be addressed.
Short absences are understood to be more disruptive to productivity than prolonged periods of absence, and firms using the Bradford Factor are able to identify employees who frequently take off single sick days.
Calculations are made using the following formula, which is usually taken over a pre-agreed period of 52 weeks:
Number of absence periods² x number of days absent
You set up your own system that triggers an action when certain scores are reached. As an example, staff with over 50 points might receive a verbal warning about their absence, and more than 200 points could attract a written warning.
Integrated and effective
The Bradford Factor system is fully integrated into our software. Businesses can use it as a deterrent. An employee with a high Bradford Factor might think twice about calling in sick on a Monday morning if they know there’ll be repercussions.
LeaveMaster automatically calculates the score for each employee, and helps you control disruptive absences in the long-term. You can warn staff when they’re approaching a trigger point, and the data provides irrefutable evidence in disciplinary hearings if required.
To find out more about effectively managing absenteeism in your workplace, call us to arrange a free demonstration of our software.
Absenteeism is a significant factor in reducing profitability. Productivity is compromised, staff morale lowered, resulting in unreached targets and restricted growth regardless of your sector.
The Chartered Institute of Personnel and Development (CIPD) say that levels of absence increase with the size of an organisation, so what can you do to manage the problem as your business grows?
Three solutions immediately spring to mind:
Without enough managerial support the company flounders under the weight of its own growth plans. Sustainable growth requires a structured hierarchy to deal with the inevitable increase in personnel issues – absenteeism being one of the biggest.
Review existing procedures
Manual systems and Excel spreadsheets take up huge chunks of time. Be honest – are they really serving you well in an era of amazing digital systems? An in-house time and motion study will quickly reveal the time-drain that occurs using these procedures. Time which would be better spent increasing workforce productivity.
Adopt a new system
LeaveMaster software is ideal for growing businesses. Administrative tasks are done in minutes rather than hours, and because it’s web-based you have access from anywhere with an internet connection.
Ideal for organisations of 50-250 employees, as the company grows the system helps you deal with:
Don’t put your business growth at risk – take control, give time back to your managers and see the difference our software makes. Book now for your free demo.
Many companies still create unnecessary paperwork by using a paper-based system for recording and monitoring employee leave and absence.
This not only clutters up the office with sheets of paper, it also affects productivity and can slow down the business, as holiday forms are time-consuming to fill out and file and can be easily mislaid.
Using a paper-based leave management system additionally makes it difficult to keep track of who’s in and who’s out of the office, or to see if employees are taking unwarranted time off.
LeaveMaster eliminates time-consuming paperwork in your organisation by allowing employees to quickly and easily book time off using a simple, automated system.
It also stores data on all types of leave, including holidays, sick days and training days, in a single, secure place, so you can get an accurate and up-to-the minute picture of who’s in, who’s out and who’s about to be away in your organisation, as well as who’s always off sick.
To find out more about the time and cost-saving benefits of using LeaveMaster, click here. Or call us on 0800 33 456 30 and we’ll give you a comprehensive demonstration.
Over the past year, more than 15 million days were lost in NHS organisations as a result of sickness absence, new statistics show.
The figures have been published by the Health and Social Care Information Centre and show that 15.56 million days were lost to sickness in the NHS over the past 12 months.
NHS organisations in the North-East had the highest rates of sickness absence while NHS organisations in London had the lowest rates.
The most effective way to tackle sickness absence in your organisation is to use LeaveMaster in conjunction with the Bradford Factor.
Find out why.
Employees who work for big companies take more sick leave than employees who work for small businesses, a report has revealed.
According to the Sickness Absence in the Labour Market 2012 report, issued by the Office for National Statistics, organisations with more than 500 employees lost more working hours as a result of sickness absence in 2011 than firms with 25 to 49 and 50 to 499 employees.
Meanwhile, businesses with less than 25 employees lost the lowest amount of working hours because of sickness absence, most likely because staff felt they could not take sick leave as their work load would not be covered by their colleagues.
By using LeaveMaster in conjunction with the Bradford Factor, you can deter staff from taking unwarranted sick leave in your organisation.
According to a new survey, the majority of UK organisations are planning to invest in HR technology over the coming year.
Conducted by Towers Watson, the survey found that 31% of companies are planning to increase their spending on HR technology in the next 12 months, while 53% of companies are planning to match their previous year’s spend.
The most common reason given for investing in HR technology was to increase efficiency levels.
By investing in LeaveMaster, you can increase efficiency and productivity levels throughout your organisation.
Find out more.
A survey has revealed that, on average, sickness absence cost UK companies £743,175 last year. This amounts to £618 per employee.
The annual XpertHR absence rates survey has also revealed that British employees took an average of 6.4 days off sick last year, with public-sector absence rates exceeding those in the private sector.
By using LeaveMaster in conjunction with the Bradford Factor, you can identify employees whose unwarranted sickness absences are costing your organisation and can reduce your absenteeism rates.
Find out more about reducing absenteeism.
The majority of British HR directors do not bring in extra members of staff to cover employees who are on holiday, a survey has revealed. Instead, line managers and colleagues typically have to take on the work of staff who are on leave.
The survey was conducted by OfficeTeam who interviewed 200 HR directors. 85% of the directors surveyed said they do not bring in extra staff to take on the workloads of employees who are on holiday. Instead, they expect other members of staff to take on extra work.
Meanwhile, 37% of the surveyed directors said that an absent employee’s line manager typically assumed responsibility for their work.
LeaveMaster’s interactive calendars show you at a glance who is going to be away in your organisation and when, so you can arrange cover for absent employees and minimise the impact of staff holidays.
Find out more about LeaveMaster’s invaluable features.
Nearly a quarter of UK employees have lied to their line manager in order to get leave approved, a survey has revealed.
Conducted by Skyscanner, the survey has also revealed that 7% of employees have pretended to be ill in order to go on holiday and 4% have faked a family emergency to get their employer to grant them time off.
The survey additionally found that staff have falsely claimed to be snowed in or attending the funeral of a close friend in order to avoid going to work.
Implement LeaveMaster and you will be able to accurately monitor and manage all forms of staff leave. You also will be able to identify employees who routinely take unwarranted time off.
A survey has revealed that British employees spend up to three hours a day working during their summer holidays.
The survey was conducted by Regus who interviewed 2,500 workers. 39% of the employees surveyed said they spend up to three hours a day on work-related activities while on holiday.
Meanwhile, 25% said they use smartphones and tablets to check emails and to stay in touch with the office when they are on leave
Implement LeaveMaster and you will be able to accurately and efficiently manage and monitor all forms of employee leave and absence.
Find out more.
According to a recently-published study, almost a fifth of the UK’s workforce may feign sickness over the next two weeks in order to watch the Olympics.
Published by Badenoch & Clark, the study reveals that 18.5% of UK employees think that they, or their colleagues, may be tempted to call in sick during the London 2012 Games.
Over a quarter of workers between the ages of 18 and 24 have said that they would be tempted to take a sickie during the Olympics, and 26% of Londoners have claimed that they, or their colleagues, might call in sick or miss work during the Games.
If you use LeaveMaster in conjunction with the Bradford Factor, you can identify employees who routinely take unwarranted sickies.
Find out more about tackling absenteeism.
Implement LeaveMaster and you will be able to establish a single, streamlined system for applying for leave in your organisation.
Instead of requesting leave using different paper-based or spreadsheet systems, depending on which system their team or department uses, all of your employees will be able to book their holidays using the same fast, automated online system.
This will significantly speed up holiday booking and leave processing in your organisation and will substantially cut the amount of time your line managers and employees spend on holiday administration and paperwork.
Your managers and HR professionals will also be able to keep accurate, up-to-date records of all forms of staff leave and absence and will be able to efficiently manage resources by seeing at-a-glance who has booked holiday in the company and when they are going to be away.
Find out more about the benefits of implementing LeaveMaster.
The Chartered Institute of Payroll Professionals (CIPP) has advised employers that they may be hit with an influx of holiday requests in the run up to the 2012 Olympics and Paralympics.
According to research conducted by the CIPP, nearly one in six UK employees are planning to book leave in order to watch events during the Olympic Games.
With a large number of employees looking to take time off, the CIPP has warned employers that they may face administrative difficulties trying to process a large volume of holiday requests at the same time and need to make sure they are prepared in advance.
The payroll body has also advised employers that they need to be ready to deal with competing requests for time off and should have a policy in place for staff who want to work irregular hours during the Olympic period.
Implement LeaveMaster in your organisation and you will be able to process holiday requests quickly and accurately.
You will also be able to maintain high levels of productivity and customer service during popular holiday periods by efficiently managing and monitoring employee leave.
Find out more about the benefits of using LeaveMaster.