: Cost of Absence Business Case

 has a headcount of  and currently has an annual absence rate of % (5% is average), resulting in  working days being lost per month.

As the average salary at  is £, the cost of sick pay per year is £.

As well as this, the percentage of staff who are replaced is %, while the mark-up for replacing staff is %. This results in total backfill costs of £.

The cost of a 12 month contract for  including an implementation fee of £2,995 is £.

Based on these figures, the reduction in sick days needed to break even would be % and the absence rate at which the service breaks even is %

 

Absence Reduction	Direct financial saving minus cost of service	Return on investment	Additional working days saved p.a.
%	£	%		Break Even
10%	£	%
15%	£	%
20%	£	%
25%	£	%
30%	£	%
35%	£	%
40%	£	%

 

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