How to bring companies and public organizations to encrypt in their social assessment the annual costs generated by absenteeism, staff rotations and accidents at work and how to manage them ?
Absenteeism, labor accidents and staff rotation (turnover) constitute social dysfunctions arising from management problems and work organization. The indicators in these matters bear witness to the social performance of an organization whatever it is, the quality of proximity management and the quality of life at work (QVCT). However, they are only qualitatively evaluated (Q) and quantitatively (Q, number of days not worked for for example) every year in the social report of organizations with more than 300 employees. The fact that they are not financially evaluated (FI = their cost for the organizations concerned) prevents organizations from making decisions to improve the quality of proximity management to master them and take action in the matter.
Spontaneously, the directions tend to consider the costs of these social dysfunctions as marginal because they are obscured by conventional accounts (income accounts or budgets) while they are often gigantic when the figures (20,000 euros on average per person and per year for non -productions of non -replaced absences, over time of presents to regulate absences, overflows and overconsumptions related to recruitments or to purchases of services to compensate for absences). In addition, the fact that the cost of social dysfunctions is not formally encrypted by organizations generates contradictory debates on its often without effect, because without shared calculation base, in terms of concrete improvements QVCT.
The proposal:
Quantify every year in the social assessment the full cost of the three indicators of the social assessment-absenteeism, accidents of work-professional and rotation of staff-and describe in the social report the improvement plans QVCT to better master them.
How does it work ?
It is a question of calculating the costs for the organization led by absenteeism, the rotation of the staff and the accidents of work in terms of loss of added value (or budgetary evaporation with regard to the public sector). To do this, companies and public services will be led to quantify the economic impact in full cost or “ True Cost Accounting »(= Financial cost + extra-financial cost = visible cost + hidden cost) of the three indicators of the social assessment, absenteeism, accidents of work-and professional work and rotation of staff. This will allow: 1/ Stimulate the decisions to invest in improvements in the quality of proximity management of organizations ; 2/ Evaluate from one year to the other the profitability of investments in quality of human potential management via cost reduction – when it takes place – social dysfunctions.
On what research work is the proposal founded ?
The proposal is based on work from management sciences, in particular the recycling of hidden costs of human activities in added value, and the “approach” True Cost Accounting ». See in particular:
– Cappelletti, L. (2023). Proximity management of human potential, active factor for social satisfaction at work and sustainable productivity. What do we know about work ? Les Presses SciencesPo, p. 250-260.
– Cappelletti et al. (2024). Measure the social and environmental impacts of human activities in “ True Cost Accounting. Contribution of hidden costs theory. Congress of the French -speaking accounting association. Dijon.
– Cappelletti, L. et al. (2024). Socio-Economic Approach to Management. Zurich: Palgrave Macmillan, Springer Nature.
– Savall, H. et al. (2019). Value research by experimentation in business. Case of the socio-economic management model. French Review of Management45 (284): 149-169.
– Savall, H., & Zardet, V. (Eds) (2024). Human at the heart of value creation. EMS.
How to implement ?
Concretely the costing can be done by the HRD of the company or the service concerned, in cooperation with management control in large organizations, the chartered accountant in small businesses. Indicators who have thus become “ qualimmetrical (Qqfi) of the social assessment will be used in sustainability reports, made compulsory by the European directive Csrd For companiesUe more than 250 employees and small listed companies. These indicators will be certified by the auditors in the private sector (and court of accounts in the public).
A law concerning the social assessment of companies and public organizations of more than 300 people could make the economic costing of social indicators compulsory and the description of the actions to improve the QVCT implemented annually to master them. Costing could be provided by branch negotiation for companies with less than 300 employees, Opco Offering training to help calculate them.