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Cost Reduction

CIRCADIAN’s comprehensive study of over five hundred 24/7 facilities has shown that working extended hours is associated with elevated employee costs compared to the daytime workforce. The good news is most of these costs are readily addressable.

  • Absenteeism  The average direct cost of absenteeism per shiftwork employee is $2,102 more per year than the cost of a traditional daytime employee. The underlying causes include fatigue and ill-health.
  • Employee Turnover  Elevated turnover rates caused by low morale and poorly designed work schedules increase expenses for recruiting, hiring and training new employees
  • Health Care  Increased health risks are found for diabetes, heart disease, gastrointestinal disorders, sleep disorders and depression in the 24/7 workforce so health care needs to be targeted to manage the increased risks.
  • Overtime and Staffing Levels  Miscalculated staffing levels and sub-optimized shift schedules cause excessive overtime, often coupled with underutilized employee capacity.
  • Safety & Legal Liability  Fatigue causes accidents, and without adequate Fatigue Risk Management Systems companies operating 24/7 leave themselves vulnerable to lawsuits and punitive damages.