Enhance Your Absence Management with the Power of HR Software

At the heart of every HR manager's approach to absence management is the desire to address employee absence before it becomes a serious problem.
Every company has its own absence policies and procedures. However, for these to work optimally, they must be communicated effectively to both employees and managers, and HR and management must apply them proactively and appropriately.

Absenteeism can be a sign of a lack of commitment from employees or that they feel overworked. It could be a problem within a particular department or manager, or a chronic illness that has not yet been recognized. Whatever the cause, leaders must be able to deal with absences sensitively and efficiently.

The UK is struggling with rising inflation and crippling energy prices, meaning the pressures people face in their everyday lives have not necessarily eased in the wake of the pandemic. Employers are waking up to the fact that mental health can have as much of an impact on employees' ability to perform their jobs effectively and efficiently as physical health. Psychological problems are naturally much more difficult to recognize than physical ones. That's why it's never been more important for HR to recognize trends and identify potential problems as early as possible.

The financial impact of employee absences

Monitoring absenteeism rates gives managers an overview of employee performance, engagement, and overall well-being. However, the costs of absence are often overlooked. CIPD research has found that the average cost per employee is £522 and with absence rates at their highest level in a decade, effective absence management is essential going forward.

The direct costs of absence include paying the absent employee's salary, overtime worked by colleagues to take over their duties or work overtime, and loss of business results. Indirect costs must also be taken into account, e.g. For example, the hiring of temporary workers, the time spent training and supporting other employees, the additional pressure that the additional workload places on the rest of the team, and the time required for replacements to become up to speed and sufficiently productive.

All of this adds up, making it paramount to identify a trend in higher-than-average absenteeism and find the cause before it becomes a widespread and ultimately expensive problem.

The value of HR software for absence management

HR software like IceHrm not only makes it easier to record absences, but also allows you to measure and compare absence data internally and externally to understand and eliminate root causes and identify underlying trends.

Using built-in tools - like the Bradford Factor - HR tech can ensure managers are following best practices to keep track of absenteeism rates across the team and compare their company's absenteeism rate to external benchmarks. Reports can then show when employees have reached a threshold, indicating when further discussions need to be held to determine whether additional support is needed and how absence rates can be improved. Predefined workflows can guide relevant employees through next steps to ensure they complete the right task at the right time.

HR software also supports absence management when it comes to strategic workforce and future planning. This data helps managers take into account expected absence times so they can ensure they are equipped with the right skills to avoid additional costs to the company and prevent a possible reduction in business performance.

If you want to learn more about the basics of HR software, have a look on our user guide.

If you would like to learn more about how HR software can support your absence management and how it can optimize your HR processes, We, Icehrm are here for your support.