The Aon Hewitt 2014 Health Care Survey found most employers don’t take employee absence into account when it comes to the company bottom-line. Those following such statistics are surprised. Employee absence has a high cost of about 8% of all income.
Here are some other factoids from the survey:
• Just 22% say they coordinate health and absence management with workers compensation.
• More than half say they’re going to start doing that in the next three to five years.
• 36% that don’t measure the cost of absence using data and metrics say their primary focus is the frequency and duration by medical condition.
The report said, “Coordinating the related employer programs to effectively use data analytics and improve results is still in its infancy.”
The 8% cost for employee absence is for:
• Replacement salary costs
• Benefit costs
• Indirect costs