In today's world, markets are becoming increasingly competitive. Your business needs to implement policies to cut costs and sustain itself in the industry. Ensuring labor efficiency and utilizing your factors of production effectively is your key to maximizing your profit.
The employees in your organization are the lifeblood of your business, so it is vital to motivate and satisfy your workforce. After all, they work actively towards your business's success. A determined labor force stays committed to working diligently. This eventually improves business efficiency and cuts down overheads. Here are some of the ways your business will benefit when it has staff with motivation and a low absenteeism rate:
If your staff have motivation, they will be less likely to take days off work, and your absenteeism rate will decrease. Your employees will be present more often at their workbenches to fulfill their duties. This will automatically increase production levels, and your business will benefit from lower average costs.
The higher output will spread out the direct labor overheads, so you will be able to reduce the price charged to your customers and gain that competitive advantage. This will also attract more customers and increase your business's overall revenue and market share.
High absenteeism rates usually disrupt the normal operational functioning of a department. The workload of absentees transfers to the employees present on that day, which can over-burden them. This overburdening is detrimental to both businesses and employees.
Extra wages have to be paid for the extra work, increasing costs for the company. Additionally, the extra work causes fatigue in the current workforce and can lead to inefficiencies in the workplace. A low rate of absenteeism will help employees stay active and fresh while working and optimize their work hours. This will help avoid dissatisfaction and resentment among employees and managerial staff. Additionally, employees will be less likely to make mistakes when they are not overburdened, reducing mistakes at your workplace. Decreasing pressure on employees will ensure that your business has a good reputation. additionally, you will face no obligations from pressure groups like labor unions on employee exploitation.
Absenteeism can arise from a demotivated workforce that is not ready to work to its full potential. Providing fringe benefits and relevant training can act as a motivator for employees and can help counter absenteeism. This can satisfy the employees and make them feel valued as they will see the investment their organization makes for their well-being through training and better facilities.
Training will boost employee morale and motivate workers to assure quality control. Having a well-motivated workforce will lower the labor turnover rate and reduce costs related to hiring external temporary workers and paying unemployment premiums. Workers would be loyal to the business if they consider themselves a part of the organization, so you will have a lower labor turnover rate. This will reduce recruitment costs and save the valuable time of your human resource department.
A low absenteeism rate ensures better attendance of customer service staff and, consequently, a better customer satisfaction rate, as an undisrupted team will be highly efficient in carrying out a task.
Let's take an example of a grocery store; customers get disappointed if they have to wait in long queues at checkout due to understaffing and fewer points of the sale being operational. The lack of resource management will discourage them from coming to this store in the future. If it happens too often they will choose a competitor over your product or service.
In contrast, good customer service will attract more customers to build a loyal customer base for your business. Therefore, establishing your brand's image in the market. This will help in the growth and expansion of your business.
Lowering your absenteeism rate will also enable managerial staff to continuously track and assist employees. Thus, improving their work performance. This will make the workplace more democratic. Employees will feel more valued as the communication barriers are removed.
Strengthening the tie between the upper management and the subordinates helps avoid any workplace conflicts. This also ensures a healthy working environment. It improves employee engagement, encourages efficient workflow, and allows the workers to share their views openly.
Considering the benefits of managing absenteeism, a business should focus on implementing policies and practices that effectively manage employee attendance. A happy and motivated workforce is the biggest asset of any company. Having a well-motivated team will set your business up for expansion and also improve existing efficiency. Low absenteeism should be a top priority for your business. It is a great indicator of success and allows businesses to achieve operational efficiency.
