Woody Allen has asserted, “80% of success is showing up.”
For years, researchers have provided reports that show the impact of absenteeism – an employee’s intentional or unintentional absences from work – to a company’s bottom line. According to a recent study produced by workforce solution company Circadian, unscheduled absenteeism costs roughly $3,600 per year for hourly employees and $2,650 each year for salaried employees. Employers have offered incentives such as paid time off, sick time off, wellness programs, etc. just to get employees to “show up.”
Sarah, a 25-year-old college graduate with a B.S. in Finance/Accounting, was hired by a large CPA office as an accountant. She was set up in a nice office with a new computer, had access to the most recent and up-to-date accounting software, was given a company cell phone and expense credit card, had access to unlimited amounts coffee, tea, water and soda in the breakroom, and was presented with an amazing benefits package upon her first day of employment.
Most would agree that Sarah had landed a dream job. However, since her employer did not offer a new hire orientation, an employee handbook, a job description, or any kind of training for her new position, Sarah stated, “I’m frustrated about the lack of guidance, career development and the fact that I am just the “new girl” in the office. I come to work, but I hate my job.”
Tom, a 55-year-old computer technician, suffers from lower back pain, due to a fall from a ladder while trimming tree branches a few months ago. He chose not to seek medical attention, because his employer does not offer accident insurance and he doesn’t have the money in savings to pay for his high deductible healthcare. He slowly makes his way to the office, sits at this computer for 8-10 hours a day, silently working through the excruciating pain. “Most days, it’s hard to focus. I often miss deadlines or am behind task, but I make it through the day,” He says.
Susan, a 35-year-old Registered Nurse for an assisted living center, works a 12-hour shift, four days a week, often being called in to cover other shifts. With two young boys at home who play baseball and basketball, she rushes to make it two different practices, making sure the proper sports equipment is loaded and picking up two carpoolers. After practice, with a car full of hungry boys, she picks up four value meals, then heads home to assist with homework, take showers, pack lunches and get the kids in bed. “I’m so stressed,” she says. “Most days, I’m not sure if I’m coming or going, but I make it to work every day, whether my boss notices or not.”
Are you certain that absenteeism is what’s impacting your bottom line?
Whether you know it or not, employee stories like these have everything to do with the success of your company. It’s called presenteeism. In case you are not familiar with the term, presenteeism describes employees who report to work when ill, injured, stressed, fatigued, non-committed or otherwise unable to perform up to their usual standards. These employees may show up for work, but at what cost?
Employees will always experience unexpected challenges in life. And in order for your business to be successful, your bottom line depends on committed, engaged employees. That’s why working with a Professional Employer Organization can help you maximize employee productivity, improve employee relations and reduce the employer risk associated with personnel administration.
4 ways a Professional Employer Organization (PEO) can help:
- Human Resource Management: A PEO prepares employee handbooks, which include policies and expectations for employees; creates and maintains employee files and records; and conducts orientation and training sessions for employees and supervisors. The HR professionals at a PEO are certified and trained to help your organization maintain compliance with all federal and state regulations and reporting requirements.
- Workers’ Compensation and Risk Management: PEOs work to evaluate areas of exposure and to implement risk management strategies for your company, as well as handling all claims administration and providing safety training and OSHA assistance.
- Payroll and Tax Administration: Your payroll is handled by a team of American Payroll Association certified professionals. The PEO issues payroll checks, processes changes in status, administers all withholding and filings of quarterly reports, prepares W-2s and W-4s, handles payroll taxes and remittance, and assumes liability for FICA and Unemployment taxes. Some PEOs also provide online reporting and access to a time and attendance system.
- Benefits Management: Offering an attractive benefits package is a great way to obtain and retain a committed and engaged workforce. PEO teams will work closely with you to design a program to fit your company and employee needs. In addition, the PEO typically handles benefit administration, compliance and communications. A good benefits package will include: Major Medical, LTD & STD, Life, Dental, Vision, Accident, Cancer, and many others.
Handing off non-core tasks to a PEO takes stress off your team, allows you to offer more and better benefits, and bolsters your company culture and employee engagement. From effective orientation and onboarding to ongoing employee development, HR managed services professionals can assist you in keeping your best employees and attracting top talent.
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