When it comes to instances of stress and anxiety in the workplace, the World Wide Web is inundated with data and statistics. There were 488,000 case of work-related stress and anxiety during 2016, for example, which translates into a prevalence rate of 1510 per 100,000 workers.
While these statistics highlight a worrying trend that is developing in the UK workplace, the concern for business-owners is also becoming increasingly prevalent. After all, such conditions translated into 11.7 million lost working days during the last fiscal year, and this in turn boasts a considerable fiscal cost for employers.
As stress-related absences become more frequent, this cost grows incrementally and increases the burden on businesses. The question that remains is how can this challenge be negated, particularly in a difficult financial climate?
Introducing the Bradford Factor
The answer lies in the so-called Bradford Factor, which is a financial equation that scores each individual’s absence during the course of the year. Low scores are indicative of employees with a low level of absence, whereas higher scores indicate a more significant issue that can cause huge levels of disruption within the business.
Not only this, but the nature of this calculation also attributes a fiscal value to absenteeism in your workplace, both collectively and in terms of each individual employee. This is a crucial and yet often overlooked aspect of managing your human resources, as you look to optimise productivity and ensure that each the profitability of each individual staff member is maximised over time.
The Benefits of Introducing the Bradford Factor
While the theoretical implementation of the Bradford Factor makes perfect sense, what practical benefits does it deliver to your business? In terms of managing stress and absenteeism, the Bradford Factor enables you to understand the core issues that are placing an undue strain on employees, which in turn can be countered by operational changes. Beyond this, the equation can also establish a threshold for the beginning of disciplinary proceedings relating to excess absenteeism, creating clear guidelines for staff and managers to follow.
When it comes to understand the financial impact of absenteeism and countering this the Bradford Factor also offers additional benefits. Applying a financial value to absenteeism can help you to create viable solutions that are cost-effective and capable of delivering an impressive ROI, for example, while eschewing ideas that are expensive or likely to be ineffective. Above all helps, it helps you to leverage insight and data to make informed decisions, which can reduce the cost base for each employee and their profit potential.
The Final Word
These practical benefits are hard to ignore, particularly in a strained and challenging economic climate. After all, businesses are increasingly keen to reduce operational costs and establish lean business models, where expenses can be reduced without impacting on the output of the venture.
The Bradford Factor plays a seminal role in this endeavour, as it offers employers the chance to understand the financial impact of absenteeism and develop cost-effective solutions. This is key thing to keep in mind in 2017, as it may make the difference if profit margins are squeezed throughout the year.