RITAM POSLA Damir Kovačević

Guest Damir KovačevićHosted by Lidija KiseljakMay 3, 2026

Damir Kovačević

About this episode

What you'll hear in this conversation

What if one of your biggest business costs is hiding in plain sight, often dismissed as an unavoidable part of doing business? For many companies, the true cost of absenteeism—employee absence from work—is just that, ranking as the second-highest labor expense after salaries. This is especially true in a market like Croatia, where rapid demographic shifts have created a severe labor shortage, forcing businesses to rethink how they manage their existing workforce. Damir Kovačević, Director of the Institute for Absenteeism, has spent years examining this overlooked challenge. He explains why understanding and managing absenteeism is no longer a niche HR concern, but a critical strategic imperative for any business looking to maintain productivity and control costs in a tight labor market.

Insights from the conversation

What to take from this episode

Absenteeism is the second-largest labor cost, right after salaries, a fact many businesses discover only when they start tracking it. The most expensive problems often hide in plain sight, disguised as an unavoidable part of operations.

With Croatia now importing labor from distant markets, and new workers taking "seven to ten years" to fully integrate and become productive, businesses can no longer afford to overlook their existing workforce. The short-term fix for a labor shortage isn't just hiring more people, but optimizing the ones you already have.

Croatian workers average 13.4 sick days per year, nearly double the EU average of 7.4. This gap isn't just about individual choices; it signals systemic issues that businesses must address if they want to improve productivity.

When factoring in annual leave, sick days, micro-absenteeism like long breaks, and other entitlements, the average worker is paid for "fifty-seven working days" without delivering equivalent output. The true cost of absenteeism encompasses all paid time not spent in productive work.

Absenteeism is not solely a worker's problem or a management issue; it stems from a complex interplay between employees, employers, and the public health system. Pinpointing blame to one party misses the opportunity to address it at its roots.

The public health system's slowness means workers often wait "several days to several weeks" for specialist diagnoses, prolonging sick leave unnecessarily. Some of your biggest operational drags come from external systems you don't control, but must account for.

Employers often unknowingly generate their own absenteeism, particularly through "uneducated middle management" who provoke conflicts with workers. The cost of poor management isn't just lost morale; it's quantifiable sick days.

When a worker goes on sick leave, their tasks are often redistributed to remaining colleagues, creating "overload for the rest of the workers" who then, in turn, fall ill. The quick fix of task redistribution often becomes a long-term problem of cascading absenteeism.

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