Fact Sheets
MANAGING ABSENTEEISM
In any normal week of a normal year around 4% of the workforce is absent from work for at least one day, costing Australian industry $7 billion, or roughly $1,000 per employed person per year.
It is anticipated that in the event of an influenza pandemic up to 30% of the workforce could be absent. The effect on Australian industry would be mind boggling. Even in normal circumstances the effect on business is significant. In a pandemic, a company's major resources, its staff, may be unavailable for several weeks due to death or illness, sick family or closed transportation and services.
The impact of absenteeism on business is often underestimated, and involves more than the direct financial costs associated with the absent worker.
Costs of Absenteeism
Beyond costs like replacement labour, overtime and decrease in productivity, absenteeism creates a flow on effect to others workers, including increased workload and stress among staff forced to compensate for an absent colleague. This may increase the risk of workplace accidents and reduce output or quality. Additionally, there is a time and financial cost for extra supervision and training of temporary staff. Organisations suffering from high levels of absenteeism often have associated staff morale problems and higher levels of industrial disputation and worker's compensation.
Assessing the cause
There are two broad categories for assessing absenteeism - involuntary or voluntary. Involuntary absenteeism refers to illness, injury, epidemics like influenza, and chronic illness, including drug and alcohol related problems. Voluntary absenteeism includes absence to look after a sick family member, but may also be a reflection of a workplace with an entrenched accepted sick leave culture or due to boredom, low job satisfaction or lack of employee support.
HSA tailored solutions
HSA's strategic approach to reducing absenteeism involves a 4 step process:
- audit, including an analysis of the demographics of the workforce and absence rate;
- identification of issues that may encourage absenteeism;
- review of the organisation's OH&S policies and HR practices;
- report including estimate of the cost of absenteeism & tailored recommendations.
Recommendations may include: changes to existing HR policies to allow more flexibility in types of leave (eg. to accommodate family needs); suggestions for increasing workplace safety; 'flu vaccination program; support for employees via individual counseling; and health promotion activities to reduce illness. Support and training of front line supervisors in actively managing attendance is also important.
It's well known that culture change does not happen overnight, and the strategies HSA proposes do not represent a quick fix. They do however provide a foundation on which to build. At the end of the day, if employers appreciate both the direct and hidden costs associated with absenteeism and take tangible steps to improve the situation, they will not only reduce costs, but also improve staff morale and productivity and safeguard the viability of their business.
Health Services Australia and The Travel Doctor-TMVC can provide assistance in preparing your workplace for a pandemic. For further information contact Dr Tony Gherardin on 03 9224 8352.
