Absenteeism
According to the 15th annual CCH Unscheduled Absence Survey by CCH INC, an Illinois based Human Resources consulting firm, (CCH, 2005) the rate of unscheduled absenteeism barely budged since the prior year, the average per-employee cost rose to $660 per employee — costing some large employers more than $1 million per year. The survey also found that employee morale can affect a company’s absenteeism rate. Organizations with Good/Very Good morale experienced a 1.5-percent rate of unscheduled absences while those reporting Poor/Fair morale had a rate of 3.2 percent.
CCH Inc.(2006 report) estimates that businesses lose $789 per employee per year because of emergency time off. That means employers with as few as 20 employees lose nearly $16,000 per year, while large employers with more than 2,000 workers suffer losses in excess of $1.5 million. And those figures do not take into account the cost of lost productivity or the overtime pay needed to compensate for lost employee time.
Employers can save 63% of absenteeism costs per year by utilizing Teleworkers. (ITAC, 1999)
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