Employee absenteeism doesn’t always seem like a big deal. However, it can cost your business more than you imagine. There are plenty of reasons why employees may be absent-traffic conditions, personal emergencies, and poor weather conditions. 

Even though these reasons are valid, they are bad for your business. 

The Cost of Absenteeism

When employees don’t show up to work, the company’s productivity for that day drops. Low productivity translates to lower profits. If the absenteeism goes on for a long time, the losses will add up over time. 

The cost of absenteeism depends on the industry. Professional occupations generally record the highest losses from absenteeism. In some industries, absenteeism has an indirect impact. 

The direct financial implications of absenteeism stem from Workers’ replacement and the wages of unreported PTO. When an employee is absent, the company may need to find a replacement for the day. It can be a costly affair. 

 The indirect costs of absenteeism include Reduced quality of products and services, safety issues, and lower productivity. 

Reducing the Cost of Employee Absenteeism

Even though employee absenteeism may be costly, there are ways to make it less stressful on your business. Using a leave of absence tracker is the first step. It helps you keep track of employees that are absent from work. It is impossible to reduce the cost of employee absenteeism without reducing absenteeism rates first.

It isn’t always possible to eliminate absenteeism completely. However, tracking employees’ hours gives you a level of control. Every organization should have a system that lets employees and managers determine the amount of PTO they have used. Cloud-based solutions are great for tracking absences. 

 The right solution will make sure that employees do not abuse their sick days, PTO, or approved absences. Tracking absences can help you identify and fix patterns. Using technology promotes efficiency. It can save you a lot of time and money. 

How Technology Can Help Reduce the Cost of Absenteeism

Employee absenteeism can be impossible to track or prevent without the relevant technologies. Here are a few ways that technology can help you lower the cost of employee absenteeism. 

Reduced Payroll Expense

Attendance trackers give you accurate reports. They can give you an insight into patterns and the main causes of absenteeism. Managers can use this information to implement appropriate policies. By determining when PTO isn’t reported, you can lower overtime costs. 

 Attendance tracking software can help you choose the right employees to cover different shifts. They can create schedules based on employee availability, training, and the number of hours they worked in the week. By using specialized software, you can reduce absenteeism rates significantly. 

Improved Productivity

Tracking employee absences makes it easy for managers to predict and create better schedules. This results in employees being productive and motivated. You can make sure that employees don’t go beyond their overtime limits by tracking hours. Tracking is a great way to reduce burnout and ensure that no one feels overworked. 

While there are lots of ways to limit absenteeism and reduce the associated costs, using technology is always a good idea. The right tracker will give you a clear insight into what is going on. It could help you prevent problems in the future. 

In conclusion, employee absenteeism could be costing your business more than you realize. Depending on the nature of your business, you may suffer direct and indirect expenses. They include reduced quality of goods and services, unreported PTO, and reduced productivity.

Using the right technology could improve the ability of your business to detect absenteeism. It could help you establish and take advantage of patterns.