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.