Better working environments can reduce absenteeism, saving the economy billions per year. Recent research has shown that the country’s best employers boast a 46% lower rate of absenteeism than average South African companies and their personnel are healthier. The Best Employers Certification Index, which is carried out by the CRF Institute, lists the top employers in various countries across the world, primarily evaluating their performance on their HR policies and practices. According to the survey, employers with the best HR systems in place are not only more productive and profitable, their rate of absenteeism is nearly half that of their competitors.
Absenteeism comes at no small cost to companies,” says Samantha Crous, South African Manager of the CRF Institute. Unscheduled absences are at an all-time high since 1999 and the total cost of absence can amount to up to 36% of payroll. Furthermore, according to the Professional Assignments Group, absent employees cost the South African economy roughly R12 billion each year – enough for example to provide roughly 225 000 additional houses to destitute South Africans, or provide 2 million South Africans with anti-retroviral drugs every year! Worryingly, recent reports show that 2 out of 3 absences are not owing to physical illness, and there is a rising incidence of stress related ailments.”
“Absenteeism can be reduced by giving employees a working environment they don’t want to avoid; maximizing wellbeing and minimizing stress. Best employers are achieving this through better HR management, Crous believes. Best employers are certified by the CRF Institute according to a wide range of possible areas of employee wellbeing, from flexibility to career development, diversity management and employee wellness. Assuming their investment in these areas results in increased employee engagement, it comes as no surprise that such companies boast a higher level of productivity. By offering employees support for their wellbeing, education and personal development, smart companies are creating a meaningful give-and-take relationship that is more likely to last.”
Extract from The Citizen – 1 May 2012