The true cost of absence
When building a business case for an employee wellbeing programme, you don’t have to look far to see how the return on investment benefits an organisations bottom line.
However, if you dig a little deeper and go beyond the traditional cost of absence statistics and calculate the actual cost of absence, you will discover the business case stacks up even more.
This is an example using the UK averages. You can use this model to calculate your organisations numbers.
|650 employees||X 5.6 median days absence per |
|Total days absence |
|£100 daily rate||X 3,640 days absence||Cost of absence|
|£364,000||X 3*||Actual cost of absence|
*(The X 3 figure is the average contribution to the business you are missing from each employee absence day)
Add to that the following….
- Impact on customer service levels
- Colleagues having to take up additional responsibility to cover those on absence
- Impact on productivity levels
- Impact of morale and employee engagement
- Risk of loss of talent
- Impact on turnover levels
The continued research and case studies show that companies who outperform the competition do so because they understand the clear link between a healthy happy and engaged workforce and the bottom line.
“Good health IS good business.”
Paul Drechsler, Chairman/CEO, Wates Group Limited
Transform the health of your people and your bottom line. Book a free live demo of our Digital Wellbeing Portal and deliver digital wellbeing training to your people at the click of a button.