#4 ROEI Series: How to Reduce Sick Leave

ROEI Series: #3 addressed the 7 areas to focus on in an effort to minimize turnover and increase retention.

This month, we look at How to Reduce Sick Leave:

Sick leave is a necessary benefit for employees. If sick leave was not available there could be an increase in health problems and the spread of illness with resulting loss in productivity and morale. However missed work time and increased insurance costs are equally harmful to the company.

According to CCH, unscheduled absenteeism has an average direct cost of $ 602 per employee per year. Add to this the indirect costs such as overtime pay for fill in employees, temporary workers, missed deadlines, lost sales, sinking morale and lower productivity can increase the direct costs by up to 25%.

Disengaged employees can result in abuse of sick leave. A study in the UK showed that 30% leave is partly the result of stress related anxiety and depression. Motivated and engaged employees are eight times less likely to abuse sick leave.

Wellness Programs:
Programs and policies that promote healthy behaviour may make a difference to employees need for sick leave.

Studies have shown that for every dollar invested in corporate wellness programs, there were savings from $ 1.49 to $ 4.91 with a median savings of $ 3.14.* *US Department of Health and Human Services

Other studies produced these results:

  • 19 studies found a 28.3% reduction in sick leave
  • 16 studies demonstrated a 5.6:1 return on investment
  • 23 demonstrated a 26.1% reduction in health costs
  • 4 demonstrated a 30% reduction in direct health care and workers compensation claims.

To fight against a pattern of sick leave abuse means that the correct information be made available for both managers and employees. There are tools within data monitoring software to provide information to the employee, alerts to the manager and dashboards to report by company, by department, by team etc

That was our final article...we certainly hope you will join us in September to learn more.