Tracking Employee Absence to the Bottom Line
Methods to Track Absence in the Workplace
Absenteeism at work is something that continues to rise and poses a huge problem to employers, most of whom have never even tried to track the amount of money that is lost through workers being absent from the job. In fact, sixty nine percent of businesses have never tried to estimate the amount of revenue that they lose each year from employees not showing up to work. Most companies take into account the amount of money that is going to be lost each year when it comes to vacation days, but few companies account or track the amount of money that is lost each year by absenteeism. Some of the numbers are quite staggering when you look at the total amount of days missed by employees, with some studies suggesting that eight percent of employees rack up forty two absent days per year.
Lost Revenue from Absent Employees
A statistic that really puts things in perspective is the amount of revenue that would be lost from a company that has approximately twenty thousand employees, which is pretty average for a pretty large company. In an average year, with a decent percentage of employees missing a large volume of days due to absenteeism, a company can expect to lose about thirteen million dollars. The total sum of that adds up to two hundred and sixty employees effectively missing the entire year. When you consider that the company only has twenty thousand employees, you can start to see what a big chunk of revenue this type of thing is eating up.
Tracking Absent Days
One of the things that a lot of companies have started trying to do lately is to track and account for the amount of days that employees are likely not going to show up to work, but this is far from a perfect science. The reason for this is the fact that each employee is different and their record of absent days may change over time based on their health, their level of happiness in the work place, the relationship with their current boss and coworkers, and a ton of other factors. However, regardless of how hard it is to track the amount of days that employees likely are not going to be in the office, it is crucial for companies to budget and to analyze their accounting data. Without taking these absent days into account, their yearly predictions and accounting may be way off, which is something that companies are trying to avoid at all costs, although the problem has started to grow since more and more employees are missing record numbers of work days.
Legal Obligation for Vacation Pay
Employees come and go all the time and companies end up having to pay for the vacation days that are left and remaining when an employee leaves the company. When it comes to paying these dates, it is on the burden of the company to provide detailed records of the dates that employees were at work and when they were absent, and the reality is that a lot of companies lack in this department. One of the ways that companies can protect themselves from having to pay out money for these days is by keeping track of all of their records and really knowing what they owe. Not only does keeping records of everything save money in the long run, but it can eliminate a lot of confusion that comes with trying to track absent days and pay out vacation pay.
Web Based Systems
One of the best things that the internet has brought to the business world is the amount of things that can be processed and tracked. There are a great deal of programs out there that businesses can utilize, which track the amount of days that various employees are absent, and can track the total number of absentee days throughout the year, as well as the amount of vacation days that have been used up. Looking at this data from year to year can give a company a really good idea of the amount of days of absenteeism that they can expect in the following year. While this is not a perfect method of tracking and predicting the amount of days that their employees are going to miss, it is a pretty clear indication and one of the best methods possible.
Keys to Tracking
When it comes to the keys to tracking this type of information, it really comes down to being on top of it and having the proper tools set in place before the year starts. Monitoring the amount of days that employees miss, setting up software that monitors the amount of days that have been used for vacation, and keeping all of this information easily accessible are key ways to track absenteeism in the workplace.
Article provided by Neches FCU, an Equal Employment Opportunity Employer.
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