Australian Businesses Suffer from Absenteeism

Nick Burge

6 August 2015    |    read

Definition: Absenteeism is the practice of regularly staying away from work without good reason. Everyone is guilty of absenteeism at least some point in their lives. But how do you know when absenteeism is becoming a real problem within your business? How much it is actually costing your business invaluable work time, productivity and money? A survey conducted in November 2014 by Direct Health Solutions, a firm that specialises in reducing workplace absenteeism, found that sick days are costing Australian businesses a record $33 billion in payroll costs and lost productivity. Sick days are not only costing Australian businesses money, they are also being incorrectly recorded. “Absenteeism levels are understated and incorrectly recorded in over 50% of organizations.” “To ensure employers understand the impact and cost of absenteeism to their business, companies need accurate recording and measurement systems in place” said Managing Director of Direct Health Solutions, Paul Dundon. Tanda, an award-winning time and attendance software, is a cloud-based system that helps small and large businesses manage their staff costs. Through the use of our automated time and attendance tracking software, in just a matter of minutes Tanda can calculate the total number of employees who take sick days along with the total cost of lost revenue and productivity due to absenteeism. Tanda offers a complete payroll administration system that allows businesses to manage and monitor time and attendance from any device at any time. The processing of an entire payroll that used to take hours to complete can be processed in a matter of minutes.   You can trial Tanda yourself for FREE to see just how easy it really is to use. We guarantee you’ll never look back.

Definition: Absenteeism is the practice of regularly staying away from work without good reason.

Everyone is guilty of absenteeism at least some point in their lives. But how do you know when absenteeism is becoming a real problem within your business? How much it is actually costing your business invaluable work time, productivity and money?

A survey conducted in November 2014 by Direct Health Solutions, a firm that specialises in reducing workplace absenteeism, found that sick days are costing Australian businesses a record $33 billion in payroll costs and lost productivity.

Sick days are not only costing Australian businesses money, they are also being incorrectly recorded.

“Absenteeism levels are understated and incorrectly recorded in over 50% of organizations.”

“To ensure employers understand the impact and cost of absenteeism to their business, companies need accurate recording and measurement systems in place” said Managing Director of Direct Health Solutions, Paul Dundon.

Tanda, an award-winning time and attendance software, is a cloud-based system that helps small and large businesses manage their staff costs.

Through the use of our automated time and attendance tracking software, in just a matter of minutes Tanda can calculate the total number of employees who take sick days along with the total cost of lost revenue and productivity due to absenteeism.

Tanda offers a complete payroll administration system that allows businesses to manage and monitor time and attendance from any device at any time. The processing of an entire payroll that used to take hours to complete can be processed in a matter of minutes.

 

You can trial Tanda yourself for FREE to see just how easy it really is to use. We guarantee you’ll never look back.

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Why are we doing this?

We decided to start Tanda (PayAus) because we believe that accurate employee data will become increasingly important for businesses of all sizes in the next 5 years. Not just so businesses can cut costs, but so they can make smarter decisions. The scalability of Tanda makes it possible for the smallest of businesses to monitor costs and HR trends in a powerful and simple way. We’ve been building Tanda with simplicity and scalability at front of mind. We want everyone to be able to use our product and add value to their businesses. We ourselves had the same problems that busy business owners face every day when we came up with the idea for Tanda. Keeping track of staff is a nightmare, it’s time consuming, confusing and it can be very expensive if you get it wrong. We do it because we love seeing the satisfaction of our clients, who can now compete with their larger competitors on technology without the capital or technical expertise. Most of all, we do it because it’s inevitable. We believe that sometime in the next decade, people will look back at paper timesheets and ask themselves how they ever lived without a digital solution and real time data. Only time will tell if that system is Tanda, we’ll do our best to make it so. If you’re ready to move to the future, you can bring us one step closer to achieving our dream by signing up for a free demo.

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Tanda Makes Staff Attendance Simple

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Easily get labour budgets under control

Budgeting is essential to keeping on top of out of control costs in any business. At its heart it’s a simple technique – plan out much you’ll spend in each aspect of your business over a specific time period. Then, when that time period – for example, the next month – is finished, look back over it and see how close to the budget you were. Then figure out where you went off budget – maybe you make an unexpected big sale, or maybe overheads were a little higher than expected – and improve on it for next time. The biggest challenges doing a budget well is having data that’s specific enough to be useful. Most accounting systems have different ways of making your data more granular so you can see more specifically where your cost blowouts are. For example, you can use account codes to break up budgeted and actual costs in specific areas of the business. But sometimes you want to dive even deeper than that. A report that tells you that labour costs are 5% over budget isn’t very useful, especially if that’s across several sites or hundreds of staff. The solution… This week we’re introducing a new report that gives line managers and business owners better insights into labour budget variations on their biggest expense – staff. We’ve added roster comparisons across the board in our Real Wage Cost reports, so you can get a breakdown of rostered vs. actual costs for any component of your business. Let’s see some examples… This report shows the variance between roster (budget) and timesheet (actual) costs across an organisation. You can see it broken down by the type of employee as well as the total. And because it’s a Real Wage Cost report, you can also see how superannuation and workcover entitlements as well as leave accruals add up to the real cost of staffing in the business. So we’re a tiny bit over budget in this case. Let’s dive in and figure out why. The Costs By Cost Centre report breaks this down into individual stores. So Merrowport’s a little over budget. We can now dive into the costs by employee report, broken down by shifts in the Merrowport cost centre. And with just a few clicks we’re able to isolate a list of staff who are working over their budgeted hours. Now we can send this list to the Merrowport manager and double check what’s going on. This is just one example of how the Tanda Real Wage Cost reports give you a high level overview of how staff costs are tracking, but also let you dive down into really granular useful data that your managers can use to keep on top of their rosters.

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About the author

Nick Burge

Nick was formerly part of Tanda's Marketing Team.

Related Articles

Industry Insights

Why are we doing this?

We decided to start Tanda (PayAus) because we believe that accurate employee data will become increasingly important for businesses of all sizes in the next 5 years. Not just so businesses can cut costs, but so they can make smarter decisions. The scalability of Tanda makes it possible for the smallest of businesses to monitor […]

Industry Insights

Easily get labour budgets under control

Budgeting is essential to keeping on top of out of control costs in any business. At its heart it’s a simple technique – plan out much you’ll spend in each aspect of your business over a specific time period. Then, when that time period – for example, the next month – is finished, look back […]

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