More employees throwing creative sickies, employers need to monitor the cost of absenteeism

Almost three in 10 workers have "chucked a sickie" at least once this year, according to CareerBuilder’s annual survey on workplace absenteeism. More than a quarter of employers attribute the bogus sick days to increasing job stress and burnout.

Of the employers who checked up on an employee, 70 percent asked the employee to provide a doctor’s note upon return to work, half called the “sick” employee at home, and 18 percent had someone else make the phone call. Interestingly, 15 percent of bosses admitted that they actually drove by the employee’s house or apartment.

Chucking that sickie however could lead to further stress with sixteen percent of bosses advising that they have fired staff for missing a day on the job without a proven excuse.

Some of the more creative excuses that bosses have heard include; an employee’s mother was attacked by a chicken, a finger was stuck in a bowling ball, and a foot was caught in a garbage disposal.

CareerBuilder surveyed 3,100 workers and 2,400 employers for the purposes of the report. Read the full article in Chicago Breaking Business.

Last year in the UK alone, absenteeism cost the economy an estimated £13.2 billion. The Chartered Institute of Personnel and Development (CIPD) concluded that ‘a key element in managing absence effectively is accurate measurement and monitoring,’ as ‘monitoring absence allows the employer to identify trends and to explore underlying causes’.

Apparently, ‘in the latest CIPD absence survey fewer than half of employers monitor the cost of absence, just under half of organisations have set a target for reducing absence and just over one third of organisations benchmark themselves against other employers’.

The Mitrefinch Time Management System (TMS) is a proven tool for the recording, monitoring and reduction of absenteeism in the workplace. Amongst other tools at the user’s disposal is the Bradford Factor report. The ‘Bradford Factor’ is a widely-recognised Human Resources mechanism for measuring employee absence. In short, a computerised time and attendance system is a must-have for companies looking to minimise costs and crack down on absenteeism throughout the hard years ahead.

To find out more about how Mitrefinch can help reduce absenteeism in your organisation visit Mitrefinch Online, email sales@mitrefinch.com.au or call 1300 884831

Employee Absenteeism amounts to 3.9 million lost days

A report released by the Small Firms Association (SFA) in Ireland has found that small businesses lost 3.9 million days in 2009 due to employee absenteeism, costing them up to €563m (AU$800m).

Avine McNally, Acting Director of the SFA said the research showed some marked differences across sectors and regions, with employees in smaller firms less likely to miss work than their counterparts in larger enterprises.

The national average for absenteeism is 8 working days but this rises to 10 working days when considering companies with more than 50 employees. For small firms, the average actually falls to 2.6pc or 5 working days.

In monetary terms, based on average earnings of €143 per day (AU$203) absenteeism costs small businesses with sick pay schemes an estimated €563m ($AU800m) per annum.

However, this does not take other costs such as the requirement to replace absent staff with other workers or overtime payments into account. If the indirect costs such as the effect on productivity and quality, the increased work pressure on other colleagues and the administration time in managing absence were all considered, the actual overall cost could be closer to €900m (AU$1.3b), commented McNally.

According to the report, stress was cited as one of the primary reasons for absenteeism. Stress can not only lead to lost days, but also a less productive workforce, faulty decision-making, and ultimately the possibility of legal action being taken against the company for negligence or constructive dismissal, she added.

Similarly, a recent study by VicHealth and Melbourne University found that depression resulting from job stress costs the Australian economy an estimated $730 million every year.

McNally concluded that, “employers should be aware that there are a wide range of factors that can influence employees’ attendance patterns and levels. These include good communication, training and development, working conditions, job design, team working and the creation and fostering of a culture and organisational morale, which encourages and recognises excellent attendance."

"Promoting employee health and welfare, tackling the issues surrounding stress in the workplace and management training for handling absenteeism, should assist in reducing absenteeism.”

Read the full press release from the SFA here.

Jamie Fitzsimons, Marketing Manager for Mitrefinch Australia advises, "Organisations need to have an effective means of measuring staff absence in place, enabling them to assess the extent of the issue and decide the best means of tackling the problem.”

The Bradford Factor is a widely-used formula for measuring an employee’s irregularity of attendance and the effects of absenteeism on a company. The formula draws on the assumption that regular, short spells of absence can cause more disruption to a business and result in higher costs than fewer, but longer spells of absence.

Mitrefinch’s Employee Time Management System (TMS) is built around The Bradford Factor, allowing employers to profile their staff by absence tracking. It measures how the work absences of individual employees are impacting your business - by recording the number of absences and the duration of each incidence and providing a ‘score’ for each employee. With this information readily and quickly available, management can deal with problem areas before they do any more damage to the organisation’s bottom line.

For more information on the Bradford Factor and how Mitrefinch’s Employee Time Management System (TMS) can assist with effective Absence Management contact Mitrefinch Sales on 1300 884 831 or visit us online.

More and more Aussies working away from the office

Almost half of Australian workers are now spending more time doing business out of the office than five years ago, according to a recent survey by Telstra to mark the launch of their new Ultimate USB modem.

The survey of over 2000 Australian employees found that one quarter spend five or more hours working away from their office. This is largely due to improved mobile and broadband technology and flexible workplace conditions.

Telstra Spokeswoman Rebekah O’Flaherty said, “Our research shows almost half of all working Australians are spending more time doing business outside the workplace than they were five years ago and they’re attributing that to better technology and increased flexibility of employers.”

Almost 80 per cent of respondents said they would work outside the workplace if allowed by their employer, claiming they would be just as if not more productive if they were allowed to work remotely.

In response to the findings, Paul Colgan, Managing Editor of The Punch advises, “As the technology improves and more and more companies make it an option for their workers, it’s worth stopping to think about how to really realise the potential of remote access.”

He adds that it’s not just big corporations that reap the rewards from having staff working remotely, “small business, too, can get huge benefits from having staff out on the road and handling correspondence or doing paperwork on the fly”.

With more people working from home, or on projects at remote sites away from the office, the collection and management of employee time and attendance data can become increasingly complex.

Mitrefinch provide a range of Employee Management solutions to enable both employees and managers/supervisors to work remotely. From mobile time recording and tracking via iPhone, Blackberry or other Smart Phones, to an Employee Self-Service web application allowing staff to clock in/out or on/off jobs, request leave, shift and work record changes, and check attendance information.

Supervisor functionality includes checking, editing and approving anomalies, planning absences and shift changes, future work planning, skills search, and reporting, allowing them to easily manage their work from PC's or mobile devices wherever they may be.

For more information on Mobile Workforce Management contact Mitrefinch Sales today on 1300 884 831, email sales@mitrefinch.com.au or visit www.mitrefinch.com.au

Links to full articles:
Sydney Morning Herald: Aussies working out of the office more
The Punch: Is it time to put the brakes on remote working

Preventable job stress costs economy $730 million annually

Job strain related depression costs the economy an estimated $730 million every year, according to a new report released by VicHealth and Melbourne University this week.

Associate Professor Tony LaMontagne from the University of Melbourne School of Population Health, said that “job strain”, where workers have little control over their job, but who are under high pressure to perform, accounts for 13 per cent of depression in working men and 17 per cent in working women.

The $730 million price tag takes the costs associated with absenteeism, lost productive time, employee replacement costs, government-subsidised mental health services and medications for depression into account.

“These figures represent a significant burden on the Australian economy that is preventable by improving job quality,” said LaMontagne.

As such, it is hard to comprehend why more Australian organisations don’t rate employee wellbeing a core part of their business, since they would ultimately be the economic beneficiaries of taking steps to reduce depression among their workforce, through reduced staff turnover and recruitment costs and improved productivity.

“There has always been legal and ethical reasons for employers to address poor working conditions and to support staff, but these new findings add an economic incentive as well. Employers would be the major beneficiaries of reducing job strain over the long term, because the greatest costs fall on employers due to lost productivity and employee replacement,” said LaMontagne.

In addressing the issue, employers can start by making changes to job control, moderate job demands and by introducing a support structure to foster the development of their people.

Interestingly the release of this report coincided with R U OK? At Work Day, an initiative that recognises we spend a lot of time in the workplace, and that staff should be given the opportunity to connect with family, friends and colleagues and ask "R U OK?"

The initiative aims to help employees feel good about themselves by connecting and supporting others within the organisation, and through that connection and support, reducing workplace stress and depression.

Download the VicHealth and Melbourne University Report here

Mitrefinch Absence Mangement, a component of the Mitrefinch Time and Attendance System, measures the work absences of individual employees and how this impacts the organisation's overall productivity. Real-time colour coded reporting allows management to quickly identify potential problem areas and resolve any issues before they get out of hand.

For more information contact Mitrefinch Sales on 1300 884 831 or visit us online.

Mitrefinch to feature at The Association of Payroll Specialists’ upcoming Payroll Expo

Mitrefinch Australia will be exhibiting their range of Time and Attendance software solutions at the upcoming Association of Payroll Specialists’ (TAPS) Annual Workplace Review Event in Sydney later this month.

As Australia’s biggest and longest running payroll conference, this year’s Workplace Review boasts an impressive educational line-up with a strong emphasis on recent changes to legislation, including a “Comprehensive guide to the NEW Paid Parental Leave Scheme”, as well as other sessions related to; the Fair Work Act, Superannuation, Terminations, Expats, and an Excel Masterclass.

Also new in 2010 is the “Payroll Expo” where attendees can learn about the latest payroll technology and tools to implement best practices, operational efficiencies and cost savings. Mitrefinch will be exhibiting as part of the Payroll Expo at Booth 8.

The event will take place on October 21-22 at The Sebel Hotel in Parramatta.

The Payroll Expo is open to the general public on Thursday 21 October from 2pm to 5pm. Entry is FREE, but you must register by sending an email to expo@payroll.com.au. Mitrefinch have also negotiated a special deal for clients who want to attend the conference. By writing on the application form that you are a Mitrefinch client, you can attend the conference at the discounted TAPS member rate of $1,100 for the 2 days.

To download the application form or for more information about the Conference and Payroll Expo visit http://www.payroll.com.au/

ABOUT TAPS
Established in 1990, The Association for Payroll Specialists (TAPS) is the voice of the Australian payroll community, representing over 6,500 payroll professionals. TAPS provides a number of specialised benefits necessary to assist payroll people and keep them up-to-date with Australia’s unique payroll environment including; training, qualifications, publications and recruitment.

For more information see: www.payroll.com.au