The Hidden Cost of Absenteeism for Blue-Collar Workers

Absenteeism among blue-collar workers can significantly impact productivity and the overall costs for businesses. Let’s break down how absenteeism adds up, particularly when it comes to the daily cost of labor, and how a small investment in wellness programs, such as AVA, can lead to big savings and improvements in workplace efficiency.

1️. How Much Does a Sick Day Cost Your Business for Blue-Collar Workers?

On average, a blue-collar worker in South Africa earns around R7,000 per month, which translates to a daily cost of about R350 per day (assuming a 20-day working month). So, the cost of a single sick day is: R350 per day.

2️. The Annual Cost of Sick Days

If a blue-collar worker takes 10 sick days per year: R350/day × 10 days = R3,500 per worker per year.

For a business with 250 blue-collar workers: R3,500 × 250 workers = R875,000 annually.

3️. Reducing Sick Days with a Wellness Program

Imagine if your business could reduce absenteeism by just 4.5 days per worker per year through an effective wellness program like AVA.

This reduction could lead to the following savings: 4.5 days × R350 = R1,575 per worker per year.

For a business with 250 workers, the total savings would be: R1,575 × 250 workers = R393,750 annually.

4️. The Power of Prevention 

Investing in a wellness program could save your business R393,750 per year—just by reducing sick days by 4.5 days per worker. This savings can be reinvested into the workforce, improving morale, and fostering business growth.

4.1. AVA Wellness Program Savings Breakdown

In addition to the savings from reducing absenteeism, you can achieve even greater savings by introducing AVA’s wellness program. AVA’s program provides additional value at just R52.00 per employee per month (excluding VAT).

For 250 employees, the total annual cost of the program would be:

250 staff × R52.00 per month = R13,000 per month

R13,000 × 12 months = R156,000 annually.

Now, let’s factor in the total savings:

• R875,000 (cost of absenteeism per year)
• R393,750 savings from reducing sick days by 4.5 days per worker
• R156,000 cost for AVA wellness program

Thus, the net savings after accounting for the cost of the wellness program is:

R393,750 savings – R156,000 cost of AVA program = R237,750 net savings per year.

5. The Bottom Line:

By investing in AVA’s wellness program, your business can see R237,750 in net savings per year after factoring in the program’s cost. This not only reduces absenteeism but improves employee health, boosts productivity, and enhances workplace morale.

6. Key Takeaways:

• Absenteeism can cost businesses R875,000 annually for 250 blue-collar workers.
• A wellness program like AVA can save R393,750 per year by reducing sick days by just 4.5 days per worker.
• After accounting for the cost of the AVA wellness program, your business can still save R237,750 net annually.
• Investing in the health of your workforce can reduce costs, boost productivity, and improve workplace morale.
• AVA’s wellness program provides holistic support, benefiting not just employees but their families as well.

Let’s focus on workplace wellness—not only for the health of your employees but for the success of your business. AVA is here to help you make that investment.