A recent survey conducted by the Society of Human Resource Management found that the total financial impact of paid time off, as a percentage of payroll, is up to 22%.1 This number represents direct costs associated with paying absent employees and staff replacement workers, as well as indirect costs such as lost productivity. The same study determined that unplanned absences like sick time, late arrival, early departure, and extended breaks reduce productivity by as much as 6.7% of payroll.2 Undeniably, the costs of employee absence are both real and measurable at your organization. But there is good news — the cost of absenteeism and its effects on productivity can be controlled with the Kronos® Workforce Absence Manager™ solution.
The Kronos Workforce Absence Manager solution automates and streamlines the application of your attendance policies — no matter how complex — so you can enforce rules consistently and control the costs, risks, and productivity effects associated with employee absenteeism.
Kronos Workforce Absence Manager gives your executive team and leaders the visibility they need to accurately measure the cost of absences and understand what drives absenteeism. And it gives your frontline managers visibility and insight into patterns of employee absenteeism, enabling managers to focus on employees with absence issues. It also allows managers to improve productivity and proactively reduce the direct and indirect costs associated with replacement workers and excess overtime.
When employees violate attendance policies, it could result in not only payroll inflation, but widespread employee dissatisfaction that can lead to costly union grievances and compliance claims. Workforce Absence Manager attacks this risk head-on by automating the tracking of employee absences against the parameters of your policies. The solution allows you to automatically apply attendance rules, including rewards and disciplinary actions, accurately and objectively across the organization. When attendance violations do occur, you can rest easy because Workforce Absence Manager gives your managers and key stakeholders easy, centralized access to attendance records and automatically generates detailed audit trails for backups.
Employee absence has a significant impact on productivity. In fact, unplanned absences in the U.S. cause a 36.6% loss in productivity.3 These productivity losses are due to the reduced productivity of replacement workers, coworkers, and supervisor productivity losses. Workforce Absence Manager helps you get ahead of the game by automatically alerting your managers when employees are approaching defined attendance policy limits. It’s a win-win functionality: Managers can correct issues before they impact productivity, and employees are empowered to stay on top of their own attendance records. Additionally, leave administrators can be given visibility to absences that may qualify as leave cases. To boost productivity even further, your frontline managers can save valuable time by auto-generating documentation such as disciplinary action letters and notifications of personalized attendance awards.
“It’s all about consistency and accountability, as well as controlling the cost of absences. Another reason we chose Kronos is the visibility it gives HR to see consistency between managers.” — Sue McDonough, Applications Specialist East Alabama Medical Center