Kronos® recently sponsored a research survey with Mercer to dive into the total costs of employee absence, beyond the more identifiable costs of sick and vacation pay.
The results were astounding: the total cost of employee absence average 36% of base payroll; this figure includes both direct costs, like employee pay, and indirect costs, like replacement expenses and net lost productivity; and not included in the 36% are the administrative costs related to managing employee absence What does this mean in terms of actual dollars?
Consider this example: 1,000 employees making an average annual salary of $50,000 per employee ($50,000,000 annual base payroll) would result in an $18,000,000 average annual cost of employee absence.
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