What's the Real Cost of Poor Employee Leave Management? WITH INFOGRAPHIC
There is a great untold story about the total costs associated with poor employee leave management. Undoubtedly, employee absence, especially when unplanned, can have a costly ripple effect across an employer's workforce. A 2010 Mercer study revealed that the total costs associated with all types of employee absences averages an astounding 36% of payroll. Controlling incidental and extended leave can have a significant impact on reducing the impact of employee absence on annual payroll.
The following infographic covers some of the hard costs associated with employee leave, and how employers have found success in taking mitigation measures.
The Aberdeen Group in it's study, Productivity: Managing and Measuring a Workforce, writes that integrated workforce solutions have the capability of reducing unnecessary overtime by an average of 32%. That means that an employer with a $5M annual payroll, who is experiencing SHRM's reported average of 6.3% of payroll attributed to overtime, could find $100,800 in recovered overtime pay by shifting to an integrated workforce solution.