Lets Talk Money

Introduction

Absenteeism costs businesses in Canada, the USA and Europe billions of dollars annually. The number for Canada 2012 according to the Conference Board of Canada is 16 Billion dollars. There are many reasons for this. Most of them the result of social circumstances under the control of the employee but some are the result of the work environment. A list of the most common reasons is provided below*.

Our footrest addresses three of the 10 reasons listed.

1) Burnout, stress and low morale

Heavy workloads, stressful meetings/presentations and feelings of being unappreciated. Personal stress (outside of work)

2) Injuries

     Chronic injuries such as back and neck problems are a common cause of absenteeism.

3) Partial shifts
Arriving late, leaving early and taking longer breaks than allowed.

If used the features included in our uniquely designed product can help employees remain on the job, be more focused and be more engaged in their work.

What People Cost

People matter. In fact they are the most valuable resource a company has.

If something goes wrong with an employee a whole lot of things have to be done by a number of people.  (These numbers are not included in the table below but estimates are they can add an additional 20% to the daily cost of an absent employee.)

If the error is on the part of the employer then things can really get expensive.

The average daily cost of an employee (wage and benefits only) is as follows;

Salary P.A.

$35,000.00

$50,000.00

 

$70,000.00

 

Add 20% Benefits

$7,000.00

$10,000.00

 

$14,000.00

 

Total

$42,000.00

$60,000.00

 

$84,000.00

 

Daily cost.
Based on 240 productive days

÷ 240

$175.00

 ÷ 240

$250.00

 

÷ 240

$350.00

 

P.A.= Per Annum

Most companies today include extended health benefits in their payroll package.

On average these cost (without dental) $50.00 - $65.00 dollars per month per employee. The extended health care costs have not been included in the calculations above.

These health plans cover the direct cost of extended health care but do not compensate companies for the lost productivity and extra costs* associated with an employee being away. These extra costs can add up to an additional 20%.

A minor investment of $70.00 amortized over 3 years could provide a considerable return in cost avoidance. If an employee uses our footrest, utilizes its unique features and remains more focused, stays at their desk for an additional two hours per year or does not require a day off because of stress our product will have paid for itself.

A minor investment of $1,400.00 would provide 20 employees with an opportunity to benefit from this unique product.

Common Reasons why people are absent

Forbes magazine article 7/10/2013
Some of the common causes of absenteeism include (but are not limited to):

  • Bullying and harassment – Employees who are bullied or harassed by coworkers and/or bosses are more likely to call in sick to avoid the situation
  • Burnout, stress and low morale – Heavy workloads, stressful meetings/presentations and feelings of being unappreciated can cause employees to avoid going into work. Personal stress (outside of work) can lead to absenteeism.
  • Childcare and eldercare – Employees may be forced to miss work in order to stay home and take care of a child/elder when normal arrangements have fallen through (for example, a sick caregiver or a snow day at school) or if a child/elder is sick.
  • Depression – According to the National Institute of Mental Health, the leading cause of absenteeism in the United States is depression. Depression can lead to substance abuse if people turn to drugs or alcohol to self-medicate their pain or anxiety.
  • Disengagement – Employees who are not committed to their jobs, coworkers and/or the company are more likely to miss work simply because they have no motivation to go.
  • Illness – Injuries, illness and medical appointments are the most commonly reported reasons for missing work (though not always the actual reason). Not surprisingly, each year during the cold and flu season, there is a dramatic spike in absenteeism rates for both full-time and part-time employees.
  • Injuries – Accidents can occur on the job or outside of work, resulting in absences. In addition to acute injuries, chronic injuries such as back and neck problems are a common cause of absenteeism.
  • Job hunting – Employees may call in sick to attend a job interview, visit with a headhunter or work on their resumes/CVs.
  • Partial shifts – Arriving late, leaving early and taking longer breaks than allowed are considered forms of absenteeism and can affect productivity and workplace morale.

NOTE: This is only one of many articles available on line. This article captures the major reasons sufficiently.

Our Product (The Kibouti Footrest)

Directly addresses two of the ten reasons listed above and indirectly addresses a third, ‘Partial Shifts’, and forth, ‘illness’  

Each footrest is priced at $70.00. A minor investment of $1,400.00 will provide 20 people with the most comprehensive and beneficial piece of office furniture available on the market today.  

The health building and maintenance features include;

  • Raise leg and adjust sitting position to improve posture, provide comfort for and prevention of lower back and neck pain.
  • Ability to rock footrest (several positions) to exercise leg muscles, ankles and create blood circulation.
  • Easily flip footrest to do additional exercises for feet as well as massage foot bottoms to relieve stress and benefit nerve sensations. Promotes personal mental well being.
  • Designed to accommodate more rigorous leg, back and stomach muscle exercises. A method to break away from stagnant mental blocks, refocus concentration and generally exercise without having to go outside. Exercises can also be done while in office conversation or on the phone.

Health impact of sitting too long.

It is now well documented that sitting for extended periods of time while at work or traveling can have serious health consequences for the individual.

People who sit for a living have a higher risk of developing some very serious long term health issues. These include;

  • Cardiovascular disease
  • Obesity, leading to diabeties2
  • Thrombosis (blood clotting) leading to strokes.
  • Venous problems (swelling of ankles)
  • Back and Neck pain.

A little research will bring up several other issues.

Prevention the best cure.

Any tool that will encourage staff to look after themselves, especially those staff members who are not athletic, avoid healthy eating and generally intend to do something but don't will be a benefit to a company or organization by reducing the risk of costs due to absenteeism.

References

1.

Conference Board of Canada
http://www.conferenceboard.ca/press/newsrelease/13-09-23/absent_workers_cost_the_canadian_economy_billions.aspx

   

2.

Extra costs include
Supervisor time, HR time, forms completion, compliance tracking, replacement worker costs, etc.