The Aids epidemic has become a global crisis as it has a direct and indirect impact on business. In South Africa more than 30% of the work force is infected with HIV. Employers are experiencing reduced productivity and declines in profits as a result of employee absenteeism and death. Declining and fluctuating productivity makes it difficult for a company to meet supply demands from customers, and even reduces service levels- which all has an effect on the company’s growth and development. Rising production costs for business not only affect current profits, but also future profits. What this actually means is that bigger companies that usually invest in smaller companies are themselves being affected by HIV/Aids. Their own levels of production are decreasing and they become less likely to invest in smaller businesses. Your company could have substantial costs directly linked to HIV/Aids, such as insurance cover, pension or retirement funds, health and safety provisions, medical assistance, HIV testing and counseling.
THE IMPACT HIV AND AIDS CAN HAVE ON YOUR BUSINESS
Decrease in productivity and profitability
Decrease in turnover
Increase in product cost (as labour costs go up because you have to pay overtime or casual workers to produce, while still paying for the employee on sick leave)
Decreased demand for your product
Increased medical aid costs
Increase in labour turnover
Loss of critical skills
Costly re-employment of staff
Pension plans affected
Increased sick leave
Costly care and counseling
Overstretched human resources function
Loss of man hours due to days off for funerals, etc.
Social impact will influence business impact