Cost of Absenteeism

Cost to the Employer



Administrative costs associated with rescheduling staff or hiring staff.

Payroll costs for temporary staff.

Training costs associated with introducing temporary staff to the organisation.

Reduced productivity - managers may have to shut down departments or reduce operations to compensate for a reduction in staffing levels.

Overtime may have to be scheduled to fill positions left by absent staff.

Added cost of training supervisors in the cost of absenteeism.

Many organization average the total number of absent days and schedule extra staff to cover - overstaffing to compensate for the lost productivity.

Insurance claims and legal fees associated with absent employees as a result of an accident at work.

Cost of time - how much does it cost the company every time an employee is away from their desk due to dentist / doctor appointments.

Costs associated with statutory sick pay and the increasing administrative work faced by payroll drive up costs.