Businesses Struggle To Measure The Cost Of Absenteeism

According to PwC, the cost of absenteeism for UK businesses is around £32billion a year, which equates to around 7 days lost per person every year. However, measuring the cost is still a struggle for many companies.

However, when organisations manage absenteeism, questions are raised about the best way to measure and report on this issue.

MidlandHRUnderstanding Absence Management, surveyed over 120 HR professionals across organisations in the private sector, public sector and not-for-profit sector to identify attitudes towards absence management and reporting.

It found that 65 per cent of professionals said absenteeism is managed through combined efforts between HR and line managers, while 85 per cent rely on reports to assist with communicating about the state of absence.

Contributing factors to absenteeism can be down to poor implementation or no flexible working practice, personal errands, childcare and dissatisfaction with the working environment.

New research by 4Children found that a quarter of parents in London believe they’ll either give up work this year because the expense of employing childminders. Furthermore, According to a recent study by Investors in People (IIP), 60 per cent of workers are unhappy in their current role.

However, MidlandHR points out that the key here, regardless of the reason, is organisations need to get to grips on the state of absenteeism. This includes measuring and reporting on a range of factors, such as dates, length of time, employees’ role and line manager, and so on.

Richard Thomas, Director, MidlandHR belives:

Clearly, businesses are still struggling. This latest research highlights a real lack of consistency in measuring and reporting absenteeism.

“HR systems and technology have a key role to play in all of the above, offering more contemporary and sophisticated methods of presenting and reporting absence information. However, it essentially boils down to how internal HR departments and line managers use the data gathered to inform decision making, which will ultimately decide how effective these measurements can be.”

To access the full report, click here.

Mike Sandiford
Head of Partnerships
0207 193 9931

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