Keeping check of staff costs
Keeping staff costs in check is important for the success of the organisation because:
- Excess levels of absence can force up costs e.g. overtime payments to compensate;
- Absences may cause a failure in the provision of services or meeting targets;
- Absences may lead to a loss of morale, also affecting services and production;
- Unacceptable labour turnover can have similar effects;
- Labour turnover leads to fresh recruitment/training costs.
What do you need to do?
- Make sure you know the size of such problems;
- A close examination of records should show up particular areas which need attention;
- Discussion with individual employees can resolve potential problems;
- Carry out exit interviews to identify problem areas.
Ways of dealing with absence level problems
- Measure and monitor absence levels;
- Pay especial attention to matters such as working conditions and pay levels;
- Interview employees after short-term absences;
- Discuss long-term sickness absence with employees; arrange medical opinion if necessary;
- Introduce a capability policy and use it effectively.
Ways of dealing with excessive labour turnover
- Measure and monitor labour turnover levels;
- Pay attention to recruitment, training and induction of new employees.
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