Costs of Absenteeism

Most employees would think that making absenteeism a habit will just be their own loss. But one must bear in mind that it is more of the company’s loss because it gives them more cost than income.

Here are some ideas about the costs of absenteeism to the companies.

How Much Really Is the Cost Caused By Absenteeism?

The cost that is being caused by unexpected absences would depend on the type of company and how small or big it is. There is the so called sick leave. This is the leave policy being implemented by almost all companies to their employees whenever they would be sick. There are so many requirements for an employee to use this sick leave. But that is not the issue here. The issue here is the unexpected absences being done by most employees. They thought that it is just their loss but on the second thought, it costs the company or the employer. In a research conducted by the Commerce Clearing House Inc., they found out the due to unscheduled absences made by employees of most small businesses, costs them more or less $62 thousand dollars per annum. This includes the loss got by the company for the productivity rate and the replacements costs they made.

Notable Hidden Costs

  • Lost Productivity

    The absent employee would usually be deducted of the number of hours that they have been absent through their salaries. But one must remember that it is not just all about the salary, the rate of productivity of that absent employee would cost the company. There should have been more work done if that employee has entered work. In a company, the productivity rate is really important because this would be their basis on the work done by each and every employee.

  • Temporary Help Cost

    Of course, if an employee would be absent from his job without making all the necessary scheduling, the company would resort to look for someone who would fill in to his job because the company won’t stop its operation just because a particular employee is not around. Even if this absent employee will be deducted from his salary, it is still not alas of the company. Their work was jeopardized because of the unscheduled absence of the employee that is why they were cost for the payment or the salary of the person who filled in the post of that absent employee.

  • Loss of Unsatisfied Customers

    Because of an unscheduled absence of an employee, the overall work of the company is affected. Of course when the work is interrupted because of the employee’s absence, there may be some delays or less of the quality of the job that is why there may be some loss of unsatisfied customers. Customers are really important to companies because they are the ones that keep the business alive.


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