Monday, January 12, 2009

Tip of the day: Get a grip on absenteeism reasons, costs

It seems keeping a handle on who's out when for what is the "Who's on First?" of benefits management. A survey from Mercer finds that total cost of absence can equal as much as 36% of payroll. Of that figure, 9% accounts for unplanned absences. Planned absences, like vacations and holidays, average 26.6%. For a mid-size business, this unplanned absence can account for as much as $4.5 million dollars per year, reports Mercer.

"Employers tend to focus their energies on managing health care costs because the dollars are easily measured," says George Faulkner, principal and absence management specialist at Mercer. "But this new survey suggests that absences cost employers more than half the cost of health care, a startling number and a call to action for all organizations to get a better handle on this often unchecked cost," he adds.

Click here for EBN coverage on quantifying and reducing absenteesim costs, particularly FMLA absences.

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