Attendance Management System – Increase your profit margin
A very interesting article about the cost of absenteeism published by Bdaily News last year raised some surprising and fascinating points. You can read the full article here
The main focus of the article was a detailed look at the effects of absenteeism with regard to the financial cost for businesses. One of the key points raised in the article is that, on average, the cost of absences within an organisation equates to 3% of payroll. It goes on to state that “With over 21,330,000 people in full-time employment, and a median average salary of £31,461 in the UK according to the ONS, that would equate to an estimated £20bn per annum.”
In other words, an awful lot of lost revenue.
So, what can you do to help increase your profit margin? Well, for a start, keep a much more accurate track on employee time and attendance so you know exactly who is absent, when and for how long.
Absence Management System
Most attendance management systems offer functionality for absence management, including adding holidays, public holidays and sickness onto the system in order to keep a record of both previous absences as well as highlighting possible reasons for which an employee may not have arrived for work.
If your company does not have an attendance management solution, you may well find yourself unknowingly paying for the absent days, and the more employees you have, the greater the chances of this happening. Without the extra visibility offered to you by this attendance management software, it can be extremely challenging, not to mention time-consuming, to try to ensure that uncontrolled absences don’t slip through the net.
Rounding and Grace
Attendance management software can also make sure that you stop paying for the extra time that may not be due to employees.
For example, if an employee comes in 15 minutes early to get changed after they have cycled to work, would you want to pay them for this time? If not, then using Roundings and Grace within an attendance management system could prevent that from happening. Imagine one of your employees did this five times per week, and you paid minimum wage (£9.50). You would find yourself paying an extra £2.38 per day – which may seem insignificant at first, but will quickly add up over time, especially if you have several employees doing a similar thing!
£2.38 x 5 x 52 = £617.50 per year, per employee.
uAttend by Chronologic can provide you with all of these attendance management features as well as a whole lot more. Contact us on 01761 410015 or click here to book your free, no-obligation online demonstration.
News, B.B. (n.d.). 55% of businesses don’t know the cost of absence, as e-days shares a decade of absence management insights. [online] Bdaily Business News. Available at: https://bdaily.co.uk/articles/2021/05/28/55-of-businesses-dont-know-the-cost-of-absence-as-e-days-shares-a-decade-of-absence-management-insights.