Cost of absenteeism (F)

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Definition: It measures the cost generated by absenteeism phenomenon.

Calculation steps:

  1. identify the number of hours lost due absenteeism
  2. identify the hourly average salary of each employee with hours lost due to absenteeism
  3. multiply the hourly average to the number of hours lost due to absenteeism
  4. multiply the total value by 2

Studies reveal different amounts and they are huge.

Gallup states that organizations lose annually 153 billion dollars of lost productivity due to absenteeism.

CIRCADIAN states that for the US the cost per year of organizations with absenteeism amounts to:

  1. $ 3600 / year for each employee by hour and
  2. $ 2650 / year for every full-time employee.

Potential causes of absenteeism:

  1. Disease / accident
  2. Care for family members (children, dependents)
  3. Bullying / harassment
  4. Burnout
  5. Low performance
  6. Job hunting
  7. Costs with absenteeism may be direct or indirect and we can list:

Visible or hidden costs of absenteeism:

  1. Overtime
  2. Lost productivity
  3. Time lost by the manager to manage the situation
  4. Decrease motivation of employees present
  5. Staff turnover

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