The Organisational Context

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Organisational Context

In 2002, the Braham and Leonard frequently question if the survey of absence is accurate or not. Well, these surveys are generally not responded by every firm and organization and thus, one cannot really judge whole population on the basis of their survey. In fact, many of the management are not even recorded in the survey. And thatโ€™s why they argue on the under estimation side of the organization.

The CIPD reported that absence costing is significant of the firms but the costing which is actually monitored is less than half. The report of average cost states 567 Euros for an employee per year. In subject to the same, Braham and Leonard stated in 2002 that calculating an average cost is difficult as it does not only includes direct costs but also indirect costs like organization when replacing employee, reduction in overall in terms of productivity and cost of administration. In addition to the same, the institute of Employment studies, Bevan, also reported that there is no such robust data which can help in calculating the direct and indirect costing included in calculating the average cost of absence. The reason is served by the fact that many employers tend to under estimate the actual cost involved in sickness absence especially if the absence is states as long term sickness. And for now, there is no difference in the costing of short term and long term sickness. After a detailed case study by Bevan, it was reported that 30 to 70 per cent of absence cost is generated in long term sickness which means that no matter how strong the organizations are, but they fail to calculate such costing involved in absence costs.

Continuing further, the higher profile was dedicated to absence costs by SSP changes in the year 1994 when they stated that these are generally burdened costs which are transferred to the employers and are prominent to increase the direct costs to the firm or employer. It was stated by CBI that long term absence of sickness is generally noticed in the public sector which is close to 27 percent which is higher than manufacturing field (18 percent) and private sectors (11 percent). In addition to the same, the Act of disability discrimination in the year 1995 made it mandatory for the employers to provide a valid and genuine reason on adjusting the disable workers to continue their term of employment who are suffering from long term health issues and illness. With the increasing fear of litigation, the concern of well being of the employees has been generated while employers perform more and better explicit duty call.

 

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