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Canadians missed 9.2 workdays on average in 2004 due to illnesses, disability, personal and family issues. The direct cost per employee was estimated to be $3,550 annually, according to the Staying@Work study conducted by Watson Wyatt Worldwide in 2000. When combined with the indirect costs associated with managing absences, total cost can reach up to 17% of payroll. This represents a staggering $12 billion lost in productivity every year!
The total cost of any absence includes direct and indirect costs. Under direct cost can be found benefit costs, replacement staff wages and lost productivity. Indirect costs are more difficult to quantify but have equally, if not more, damaging effects for an organization. For example, the quality of a company’s product(s) may be reduced, or service levels can decreased due to poorly trained replacement workers or existing staff being stretched too thin. Indirect cost estimates vary widely by industry, but different studies indicate that a reasonable number would be 1.3 times the fully loaded wage (direct costs).
To find out how much absenteeism is costing your company, and more importantly, how much you could save through intervention, try our Return on Investment calculator for your company!
1 year savings - JAVA applet*
5 year savings based on reduction in days
- JAVA applet*
5 year savings based on reducing absence
rate - JAVA applet*
*Requires Java Applet
To download the latest version of Java virtual machine, click here.
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