Absence Management
Absence is an everyday fact for any business that employs people. Absences are both planned (holiday) and unplanned (sickness). The vast majority of TGL clients operate manual systems to capture these events and determine the consequences for pay.
Absence management is a sizeable business area. Assuming the legal minimum holiday entitlement (20 days), a £6 pay rate (including ENI) and average shift lengths of 8 hours, each employee has an "absence budget" of around £1,000. Moreover, sickness and other absences can add to this budget. Therefore, we estimate that the average "absence budget" is around £1,100 per employee.
How well are you managing this cost? In many cases manual systems are ineffective, owing to high levels of error and a complete lack of management information. Does your system answer the three basic questions that arise from this business area:
- How much absence has occurred,
- What type of absence was it and,
- How much did it cost us?
In addition to providing information to enhance business management, these answers are needed to ensure regulatory/legal compliance. Are you confident that your business is honouring its employment contracts, including those associated with TUPE-transfer staff members?
High ROI Strategy
TGL expects its Absence Management solution to provide significant ROI gains, typically exceeding 500%. The savings are likely to fall into three main areas:
- Accurate Data
We estimate that manual systems are at best 90-95% accurate. In contrast, the TimeGate module can ensure 100% accuracy. A saving of 5% from more accurate management is worth £55 per employee per year. - Process Automation
We estimate that your business deals with an average of 6 absence requests per year from each employee and that each absorbs 10-20 minutes of manual processing time to perform across the enterprise. We believe a saving of at least 5 minutes per transaction is possible using our module, which translates into about £5 per employee per year. - Management Information
Our module is integrated into the TimeGate MIS and will provide timely and accurate information on absences across the business, right down to individual employee level. This will improve business management and enable you to comply with your legal obligations. Putting a "value" on this business benefit is difficult but it is likely to be significant.
In conclusion, we expect the module to deliver around £60 per head per year of "hard" business benefits (i.e. lower costs) as well as significant "soft" gains, in terms of enhanced MIS and lower business risk.
