There is a culture of chronic absenteeism in South Africa. Some researchers estimate that this costs companies up to 17% more in payroll-related expenses annually. To address this problem CTSTime’s advanced Time and Attendance software and hardware platforms provide employers with a reliable tool to assist with identifying the underlying cause of employee absenteeism by providing statistics and patterns.
Managing and reducing absenteeism requires a holistic approach that addresses workplace stress and evaluates organisational culture. Proactive absenteeism management is essential for saving on costs while prioritising employee well-being is key to tackling the root causes of absenteeism.
What Is Employee Absenteeism?
Absenteeism refers to an employee’s habitual absence from work beyond what is deemed acceptable for legitimate causes such as holidays, occasional illness or a family emergency.
South Africa’s labour law is clear regarding authorised absenteeism and covers annual leave, sick leave, maternity and paternity leave. For example, the maximum allowance for sick leave is 30 days in a three-year cycle (for 5 day workers), and an employee may not book off ill when well.
The legislation also recognises that the basis of an employment contract is that an employee has to come to work and be on time. Therefore, deliberate or frequent unauthorised employee absences, even for valid reasons, are not something an employer needs endlessly to endure.
Being Non-Present
Absenteeism includes times when an employee is physically present but not performing to expectations.
- arriving late or leaving early
- taking extended tea, lunch, or toilet breaks
- attending to private business during work hours
- working while sick (presenteeism)
- disengaged and unproductive (resenteeism or quiet quitting)
What Is An Absent Employee Costing Your Business?
The direct cost of employee absenteeism is a decrease in a company’s overall productivity, which has a negative impact on profit margins. Absenteeism is particularly problematic during busy times of the year or when approaching tight project deadlines.
With approximately 15% of employees reporting sick daily, Occupational Care South Africa (OCSA) and Statistics South Africa (StatsSA) estimate that absenteeism costs businesses between R12 and R16 billion a year. (The Tru Cost of Absenteesim in the workplace, a study by Occupational Care South Africa )The Human Capital Review estimates are higher, at R19.144 billion annually. Business standards recommend that sick absenteeism remains around 1.5% (3.75 sick days per 250 working days a year However, many South African companies experience an above-average absenteeism rate of 3.5% and 6%. A 6% rate means approximately 8 to 15 days of absence per employee annually. Even in a small office of 10 employees, this could lead to a loss of around 80 to 150 productive days each year.
Costs associated with absenteeism include:
- Salary/wages paid to absent employees
- Cost of replacement/freelance workers
- Increased administration costs and management work burden
Additionally, there is the risk of overburdening the remaining staff, leading to poor-quality work and burnout.
Understanding Why Absenteeism Happens
According to the OCSA study, for every three staff booking off ill, only one person is physically unwell. This organisation’s data highlights a serious underlying cause of absenteeism in South Africa, and the prevailing theory is increased workplace stress.
Overworked employees are prone to burnout and likely to call in sick due to high stress. Harassment is a common cause of absenteeism, with employees choosing to skip work to avoid being picked on by management or fellow workers. Lack of motivation can also cause employees to disengage and fail to come to work.
Other common reasons for absenteeism are childcare and eldercare responsibilities, poor mental health (e.g. depression, alcohol abuse, etc.), injury and illness.
Identifying the root cause of absenteeism is key to reducing absenteeism rates.
Identifying Absenteeism Trends: Leverage CTSTime Clocking Systems
Taking a proactive approach to managing absenteeism and using the correct clocking system can potentially save a company up to 10% of monthly salary costs. By identifying trends and leveraging technology businesses can effectively reduce operational costs and improve productivity. Shifting away from the negative stigma associated with time and attendance and focusing on employee well-being follows a global management trend, allowing employers a more positive strategy to mitigate absenteeism in the workplace.
CTSTime software tracks employee attendance and enables employers to optimise team productivity. The Time and Attendance software takes note of employee wellness and provides valuable insights through data analysis and comprehensive reporting.
- Levels of absenteeism
- Spreading of absenteeism within organisational and departmental levels
- Individual absenteeism profiles
- Helps pinpoint high-risk employees
Facial recognition biometrics automate time and attendance tracking, eliminating manual processes and ensuring accurate records for payroll management.
- Reliably records employee presence
- Tracks hours worked
Additionally, the software can automate calculations for various human resource (HR)tasks, such as paid public holidays, the shift scheduling, and adjustments for time away from work.
By moving from a reactive “policing” approach to proactive management, organisations can proactively respond to system alerts and address absenteeism issues before they become problematic.
Automation Will Reduce Operational Costs
CTSTime and Attendance Wellness Module takes a unique approach to managing absenteeism. This clocking software allows for monitoring employee leave records and leave trends and tracking time spent on specific tasks to identify inadequate performance. By addressing the root causes of absenteeism and prioritising employee well-being, organisations can effectively reduce absenteeism rates, minimise associated HR costs, and create a healthier work environment.
Proactive Management Reduces Absenteeism Rates
South African labour law allows employers to address employee absenteeism through a system of graduated measures such as counselling and warnings, with dismissal reserved for only serious misconduct or repeated offensives. Mediating employee attendance issues seldom run like clockwork.
Advancements in staff clocking systems provide a reliable, cost-effective, and proactive approach when dealing with absenteeism:
- Anti-fraud and user audit trail features ensure accurate and reliable data
- Enables businesses to comply with labour laws and company policies more effectively
- Allows managers to procedurally correct and apply rules consistently
- System alerts enable employers to resolve matters before they become an issue
Meticulous time attendance record keeping is key to identifying underlying causes of absenteeism, reduces the time and costs spent on HR management, and helps prevent a culture of absenteeism setting in.