Another reason of absent is stress that associated with coworker & manager and their attitude. Absenteeism tend to increase where there are high levels of overtime. Additionally, absenteeism is positively correlated with turnover, which means that the more an employee misses work, the more likely he or she is to eventually leave the company.
a) Absenteeism and employee turnover in the construction industry have a serious negative impact on labor productivity, increasing overall costs and reducing profitability.
Labour turnover
There are exist advantage of turnover is new employees bring new skills, idea into company. Labour shotarges mean lots of other jobs available. However, the cost of turnover can be very expensive.
Although the actual costs are difficult to estimate, “ staff turnover costs uk businesses £42bn a year ”. The figure does not include into account potensial costs. Estimates of the costs of employee turnover vary widely and depend on whether all cost elements are recognized. When employees leave the company, the employer has to incur a considerable amount of direct and indirect expense.
The costs of turnover are likely to involve some of the following factors:
- leaving costs - administration of the leaver;
- replacement costs - recruitment etc;
- transition costs - training etc; and
- indirect costs - loss in customer service/satisfaction.
(source: “costs of UK labour turnoverincrease” ) (reference1)
For example, if employee has left a company, there is no other person to cover the job. Therefore, the numerous hours spent by recruit and expensive larger companies to developing better induction and initial training program for new employees.
Some companies are very poor at recruiting staff is an essential skill for any growing business. Finding the right person for business is vital as the cost of recruiting is high. It is requires that company need to recruit a new employee of similar qualification, skills and knowledge.
Having lost valuable expertise, there is no assurance that you can fine a suitable replacement.
As a results, turnover has proved to be a drain on organization’s profit. The cost of recruiting and filling vacancies, lost productivity from vacant jobs, and the costs of training new employees increase operating costs, reduce output, and cut into profits.
Absenteeism
Absenteeism will cost (£32bn a year) your organization in terms of valuable work-hours and increased administrative overheads. This is also numerous hours spent and financially burdened due to lost productivity and increased costs related with management in resolving absenteeism among employees and finding, paying for temporary replacements.
If absenteeism in not managed properly and effectively controlled, it can affect the entire workforce because long absences can disrupt projects or teams also it may be also lead to turnover. It is contagious and can affect even good employees, and developing a culture of no absenteeism.
b) Human resource manager can manage the problems.
Lot of time and money is wasted by employee absenteeism and turnover. This is a factor to consider under human resource performance management. There may be a widespread problem in need of extensive remedial action.
The fundamental human resource management (HRM) activity is job analysis and they can manage the problems in different ways.
The most absenteeism is outside of illness, that means employeer has to good health and safety policies to reduce the absenteeism.
Employers must ensure their employees have a decent work/life balance, to prevent serious health problems.
Another reason of employeer absent is stress, and the number of reason employees are stressed has to do with their relationship with their manager.
In the case of absenteeism, organising ‘return to work’ interviews have cut employee absence rates. Throught the introduction of interviews either reduced staff absences (64%) or left them unchanged (29%).
The most commonly recorded information includes the full details of the reason for the period of absence (91%), a brief summary of the interview (75%), and any further actions to be taken (70%). (reference 2)
Authoritarian management style that tend to produce high level of absenteeism that authoritarian manager who have poor communication skills, have poor listening skills, and are inflexible. In other word, blame others for problems and they are only seek that it must be their way the “highway”. It is necessary to change management style to providing them with management training it help to reduced absenteeism and turnover.
Some absenteeism is a related with personal matters, if they allow employees to utilize a revised work schedules occasionally, helps employees feel more able to balance to thier work, providing reward motive is an effective way to influence sttendance goals.
In addition, the working conditions to relate to coworker relationships. Not only does relationship stress occur between the employee and manager. Employees are fearful of angry with another employee and it has to removal of any bullying issues.
The problems can be improved by giving employees incentives is very important it is a boost to their motivation to avoid unnecessary absenteeism and leaving company.
It simply helps the employee decide to go to work.
Designing jobs to meet the needs of both employer and employee, job design to provide satisfaction and interesting job to employees.
references
1. Institute of personnel and Development (1997) “Costs of UK labour turnover increase” [online]
2. Crail,M.(2007)“Return to work interviews” [online]
- Advisory booklet.(1994) “Absence and labour turnover”, Acas publications.[book]