Protecting your most valuable asset - your employees by Maria Micallef
We invest a great deal of time and money in employing the right staff but what consideration is given to ensuring we are getting the best value out of them once they are employed? When it comes to corporate assets we often have those serviced, conduct annual checks and/or run routine maintenance to ensure its longevity and effective operation. Can we say the same for our staff? Low morale, absenteeism and presenteeism may be impacting on the performance of your organisation.
A recent survey showed that the average rate of absenteeism on any given day is approximately 2.5% of all employees. With 240 work days in a year, the cost of a sick day for a company where the average salary is $50,000 per annum + 30% oncosts, equates to: ($50,000 x 1.3) / 240 = $270
If this were calculated across a business of 150 employees this is how the losses in absenteeism translate:
|Average of employees absent each day
|Absentee cost on $50K salary
||$270 x 4 x 240
|Total cost of absenteeism
||$259,200 per annum or $1,728 per employee per annum
Health programs offer a solution
SLM produces corporate health programs that have been proven to reduce the level of absenteeism within any organisation by 17.5%. In the above case this would represent a saving of $302 per employee per annum. Your return on investment on a health program is worth $45,300 per annum and yet the cost of a health program starts from as little as $3 per person which is less than 1% of the savings you would reap per employee. It makes sense to invest a little to gain so much, and this does not even factor in the improvement in productivity and reduction in presenteeism.
Think about your business and the number of employees you have working within it. You can use the following formula and calculate the costs across your organisation:
(avg salary x 1.3) / 240 = $sick day cost
$sick day cost x (2.5% x number of employees) x 240 = $full fee per annum
The return on investment (ROI) for a health program for 150 staff could be as high as $40,500 if it saves you just one sick day on average per staff member per year, in total savings in sick leave alone. In addition to this your staff will be more productive when they are at work, leading to far greater productivity.
The implementation of a health program has shown a reduction in absenteeism would be approximately 17.5%, amounting to savings of $300 per employee or $45,300 per annum.
To learn more about how SLM can help design a customised corporate health program to suit your organisation and have it perform better contact Maria Micallef
on 02 9277 6504 or 1300 765 551.
Strategic Lifestyle Management
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