Key performance indicators (KPIs) are crucial building blocks in organizations: among many other things they are used when devising strategies, when measuring performance, and when setting goals.
When workers are absent from work, this can cause many problems for organizations. Although organizations expect employees to take time off for doctor appointments and sickness, excessive absenteeism can lead to decreased productivity (Forbes, 2013). One of the best competitive advantages for organizations is the people that they hire. When talent is absent from work, this can have a deleterious effect on organizational effectiveness. A survey of European countries conducted by Eurofound revealed that, on average, rates of absence across Europe are between 3% and 6% of working time. Taking this into consideration makes absenteeism rate a hidden champion key performance indicator (KPI) for productivity, employee engagement and leadership effectiveness. This blog post discusses the causes and costs of absenteeism as well as how to measure and reduce it.
