Help Desk Queries

CAM Solutions boasts a help desk where you can e-mail queries to help@camsolutions.co.za and we will endeavour to assist you with your absenteeism related queries. We recently received this query:

What is a normal absenteeism in the automotive manufacturing industry? How does it differ between those who earn $15.00 and those who earn $28.00 per hour?

The answer:

CAM Solutions deals mostly with sick absenteeism and other forms of unplanned absenteeism (AWOL, Family Responsibility Leave, etc). It is extremely difficult to determine the "normal" absenteeism rate in any sector of the economy as sick absenteeism is dependant on a number of factors, including:

• The demographics of the employees
• Age
• Sex
• Responsibility levels
• The nature of the industry

Due to the above factors it's not possible to determine an appropriate norm for each sector but rather to determine the absenteeism profile of each employer and to consider each of the factors separately. The factors to consider are:

• Average absenteeism rate
• Average length of each sick leave absence
• Average number of sick leave incidents per annum
• Short term ratio versus long term ratio
• Absenteeism rate per age category
• Absenteeism per department/region etc
• Absenteeism per earnings level (or better still per grade)

The above can be achieved by producing an absenteeism management report (AMR) and analysing this in detail. At a micro level each employee can then be measured against their peers using benchmarks such as:

• Average absenteeism rate
• Average length of each sick leave absence
• Average number of sick leave incidents per annum
• The CAMS Absenteeism Index (AI)
• The CAMS Health Index (HI)

In general we find that sick absenteeism levels should not be more than 2% per annum. i.e. if an employee is expected to work 250 days during a year then they should not be off sick more than 5 days per annum, on average.
We have found the absenteeism rate is higher for lower paid employees versus the high income earners. This is however more related to responsibility levels rather than income levels. Low paid employees, generally, have less responsibility, which then affects job satisfaction and morale which has an impact on absenteeism.

The benchmark absenteeism rate for the Automotive Industry (based on South African statistics), which according to our records is 1.77%. This is calculated (incident days / exposed days as a %). According to our research the lower income earners take more sick leave, but one also needs to consider the impact of the indirect costs.

Should you have any query you'd like us to assist you with, kindly e-mail us on help@camsolutions.co.za.

Kind regards,

THE CAM SOLUTIONS' TEAM

Blue collar workers take more sick leave

Statistics issued by Corporate Absenteeism Management Solutions (CAMS) have shown that absenteeism in South Africa is greatest among production and factory workers who earn less than R 5000 per month.

The CAMS statistics, recorded in 60 South African companies with more than 7000 employees, state that employees earning R 5000 per month or less have an absenteeism rate of 2.30%. This rate drops to 1.33% in the group that earns between R 10 000 and R 15 000 per month. The absenteeism rate is calculated by dividing the number of days employees are absent by the number of days they should have been at work, over a period of one year.

Chief Executive of CAMS, Johnny Johnson says, “Generally, higher absence is positively correlated with lower income earners, those who have lesser responsibilities and more repetitive, less satisfying work. Blue-collar employees have consistently higher levels of absence than their white-collar compatriots, who have more job satisfaction.”

“Sick absenteeism should at about 1.5% - which means that for every 250 working days per year, the average employee should take 3.75 days off sick. Most companies have an overall absenteeism rate of between 3.5 and 6% - way over the acceptable limit. Simply applying a return to work policy can reduce sick absenteeism to acceptable levels, saving companies millions,” he says.

Johnson explains that a return to work policy means that when employees have been off sick they must see their supervisors immediately on return to work. The supervisor must show concern toward employees and question them about the nature of the illness and if they need any further help. This communicates care and to employees who are sick and might need further medical help. It also curbs abuse because staff have to face their managers on their return.

Johnson adds that sick absenteeism costs the country about R 19 billion per year, so looking after sick employees and managing sick leave abusers correctly is just good business practice.