Measuring Absence a worked example:
Take an organisation with 200 employees earning an average £498 per week, for 260 days per year. If the average absence per employee is 2 days, then the direct cost of absence is £39,846. By reducing the average absence by just 0.5 days to 1.5, the organisation can make a cost saving of £9,961.4.
With tough conditions set to get tougher in the light of budget cuts, absence is likely to remain high-profile for a good while yet. With the average cost of absence standing at £700 per employee.
“Putting a cost on absence helps organisations identify the savings that can be made through investing in better absence management practices.” – CIPD Annual survey report, 2010 A Directors Guide to Absence