Absenteeism costs economy millions

By Tando Mfengwana
02 May 2007

A study has just revealed that absenteeism from the workplace is costing the country billions annually.

The study conducted by the Corporate Absenteeism Management Solutions (CAM Solutions), an insurance company which takes risk for sick absenteeism, showed that the activity is costing the economy about R12 billion.

Albert Schuitmaker of the Cape Chamber of Commerce and Industry told the Argus that this could affect Cape Town’s manufacturing and construction sectors.

Most workers from the construction industry did not work on Tuesday or Monday.

The study indicated that indirect costs to employers of seek absenteeism were normal.

Overtime pay for replacement workers, reduced production volumes, reduced quality, training costs and increases in medical aid and life insurance were some of the indirect costs employers were faced with.

CAM solutions says that Tuesday was the most unproductive day of the week as sick leave incidents starting on Monday hardly ever lasted a day.

On average sick leave lasted for two days, including a Tuesday and Wednesday.