How to Reduce Costs With an Absence Management System

49309601_s.jpgA contemporary absence management system can do a lot for your business. Such a solution can be used to maximize staff efficiency, track different types of leaves, provide the right incentives for workers to show up and ultimately – reduce absence.

Absenteeism is a massive problem for businesses in America. It costs companies 3,600 dollars per hourly employee per year and 2,650 dollars per year per employee on a fixed salary, a Circadian survey suggests. The survey also shows that a company employing 5,000 hourly workers can cut expenses by 7.9 million dollars per year or even more by doing effective absenteeism management. 

The use of an absence management system is one of the best ways to bring down such costs. Here’s how to do it.

Better Absence Tracking

One of the first steps towards reducing absenteeism is better tracking and figuring out why people are missing workdays. An absence management system enables business owners to get accurate and reliable data. According to the Society for Human Resource Management, only 24 percent of businesses are tracking absences effectively. Only a third of the companies questioned had an integrated system for the purpose.

Through effective tracking, it becomes easier to keep workers from abusing their sick leaves and costing the company a lot in payroll. Absences that are easy to track will also be much easier to approve or question.

Improved Engagement 

Extensive absenteeism has a profound impact on company culture and worker productivity. For many people, it’s difficult to get back to work after a leave and to reach a maximum output quickly. Through the introduction of an absence management system, it will become much easier to increase consistency in terms of performance and to create the right culture of accountability.

People who are asked regularly to cover for their absent colleagues will quickly become burned out due to the workload. Such practices can be eliminated altogether through proper tracking. There will be no perceptions of favoritism in scheduling, which will boost the worker morale even further.

Lower Claims, Faster Return to Work

Statistics suggest that even when they take a sick leave or another type of absence from work, people tend to return faster when a management system is utilized.According to Aetna analysis, companies that use absence management systems see their workers going back to the office 4.72 days sooner after a leave than the employees of companies who don’t rely on such solutions.

Such a system will also bring down the cost of a claim. The statistics suggest that the average claim can be reduced by as much as 1,047 dollars whenever absence management is done in an effective, automated way. 

Understanding the Most Common Reasons of Absence

An integrated management solution makes it possible to keep track of both absences and the top reasons for those. While sickness absenteeism is typically most common, there could be other factors specific to the respective company.

Why are people taking days off? Are stress, mental health problems, minor illness, work-related accidents, disengagement or chronic medical issues the main causes? Such data can make it easier for businesses to address the root cause and reduce absenteeism.

Needless to say, the right absence management system will have to be chosen for the best possible results. In order to make the right choice, you have to assess the characteristics, as well as the price to quality ratio. Comparing a number of solutions side by side will make it easier for you to make up your mind and pick an option that will boost engagement through reduced absences.

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