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Absenteeism: The cost to business!

$33 billion

Total loss in payroll costs and lost productivity annually to the Australian economy

$340

The average cost of absenteeism per day having risen from $308 in 2013

$3230

The average amount (per employee) that a business loses to employee absenteeism annually

$92 million

The cost to business of working days lost in Australia per annum

When an employee is absent from work, the impacts are much wider than the financial cost alone - it significantly impacts customer service, productivity and staff engagement.

Fact. Absenteeism is a major problem in Australia.

There is an obvious ‘entitlement culture’ in a number of workplaces where employees view absenteeism as a right to take, rather than a protection mechanism when needed. Since 2010, the rate of absenteeism across the country has risen by 7%, while as much as 5% of the Australian workforce calls in sick on any given day. An unexpected employee absence can cost a business on average $340 a day, while the annual cost to the Australian economy of lost productivity through absenteeism is a staggering $33 billion and rising, with a total of 92 million working days being lost through unexpected absences.

Of greater concern is the number of employers accepting absenteeism as part of the working environment, rather than showing strong leadership and tackling the issue. As many as 3 out of 5 organisations do not record absences properly, with up to 25% of absences going unreported. 

In our twenty years of experience, there is a straight forward solution to reducing absenteeism in any workplace

Develop your managers. Train them to be better leaders. Give them the tools and skills to manage their employees in an effective, professional manner – including absence management skills.

Source: third-sector.com.au/absenteeism-in-the-australian-workplace/