Marketing News South Africa

Soccer fever to cost SA companies R750 million in absenteeism

The 2010 Soccer World Cup will most likely cost companies an extra three quarters of a billion Rand in unplanned absenteeism abuse because at least one in three South African employees will take time off, which they will disguise as sick leave, to watch soccer. This is according to AIC Insurance CEO Johnny Johnson who says that these figures are based on similar results in England at the time of the last Soccer World Cup.

"Large sporting events contribute significantly to the rate of absenteeism. In the United Kingdom, research by Barclaycard revealed that as many as six million workers would call in sick, rather than risk missing England Word Cup soccer matches. In the survey, 40% of respondents admitted they called in sick if their working hours clashed with England matches," Johnson says.

"Soccer fever will hit South Africa in 2010. South African employees will either attend the matches; watch the games in pubs and taverns or stay home to catch the action on their TVs.

"Employers need to start proactively managing their sick leave procedures if they want to counter any abuse around this time. Unplanned absenteeism has the highest impact on business - it is essential to convert this to planned leave, which is much more economical. "

Johnson explains, "A broad calculation of the costs of sick absenteeism around the time of the 2010 World Cup suggests that since the cost of absenteeism to the South African economy is currently conservatively estimated to exceed R12 billion per year in normal circumstances - after allowing for inflation, by the time of the event this would amount to R15.3 billion. The average South African takes 6.5 days sick leave per annum. Because one in three employees are likely to take at least one day off during the event, then every employee will, on average, take one third of a day more per annum. The average rate would then increase to 6.833 days per South African employee per annum - a increase of 5% in overall sick leave for the year... or R780 million."

"Also, the real costs relating to absenteeism are often underestimated, says Johnson. The indirect costs can exceed the direct costs by as much as 200%."

Johnson says that companies need to start planning for soccer fever well in advance. "Anticipate the important matches, such as when South Africa will be playing, and let employees know that should they wish to watch the match, they will be required to take annual leave.

"Another way to manage the absenteeism and boost morale would be to allow all employees to watch the match at work, so that a whole day's leave is not required. Management flexibility is key here," suggests Johnson.

"Bear in mind that if South Africa progresses through the tournament, as we all hope they will, they could be taking part in as many as seven televised matches - that equates to a lot of time off per employee and it will be costly if they are abusing their sick leave.

"Of course, these figures will only apply if South Africans are as soccer mad as their British counterparts. But my guess is we are," adds Johnson.

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