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What is it?
Absenteeism is an employee’s intentional or
habitual absence from work. While employers
expect workers to miss a certain number of
workdays each year, excessive absences can
equate to decreased productivity and can
have a major effect on company finances,
morale and other factors. This article looks at
the causes of absenteeism, the costs of lost
productivity and what employers can do to
reduce absenteeism rates in the workplace.




Bullying and harassment – Employees who are
bullied or harassed by coworkers and/or bosses
are more likely to call in sick to avoid the
situation
Burnout, stress and low morale – Heavy
workloads, stressful meetings/presentations and
feelings of being unappreciated can cause
employees to avoid going into work. Personal
stress (outside of work) can lead to absenteeism.






Childcare and eldercare – Employees may be forced
to miss work in order to stay home and take care of a
child/elder when normal arrangements have fallen
through (for example, a sick caregiver or a snow day
at school) or if a child/elder is sick.
Depression – According to the National Institute of
Mental Health, the leading cause of absenteeism in
the United States is depression. Depression can lead
to substance abuse if people turn to drugs or alcohol
to self-medicate their pain or anxiety.
Disengagement – Employees who are not committed
to their jobs, coworkers and/or the company are
more likely to miss work simply because they have no
motivation to go.




Illness
–
Injuries,
illness
and
medical
appointments are the most commonly reported
reasons for missing work (though not always the
actual reason). Not surprisingly, each year during
the cold and flu season, there is a dramatic spike
in absenteeism rates for both full-time and parttime employees.
Injuries – Accidents can occur on the job or
outside of work, resulting in absences. In
addition to acute injuries, chronic injuries such
as back and neck problems are a common cause
of absenteeism.




Job hunting – Employees may call in sick to
attend a job interview, visit with a headhunter
or work on their resumes/CVs.
Partial shifts – Arriving late, leaving early and
taking longer breaks than allowed are
considered forms of absenteeism and can
affect productivity and workplace morale.
The Gallup-Healthways Well-Being Index surveyed
94,000 workers across 14 major occupations in
the U.S. Of the 77% of workers who fit the
survey’s definition of having a chronic health
condition (asthma, cancer, depression, diabetes,
heart attack, high blood pressure, high
cholesterol or obesity), the total annual costs
related to lost productivity totaled $84 billion.
According to the survey, the annual costs
associated with absenteeism vary by industry,
with the greatest loss occurring in professional
occupations (excluding nurses, physicians and
teachers); the 14 occupations and corresponding
costs of lost productivity are shown in Figure 1.
According to Absenteeism: The Bottom-Line
Killer, a publication of workforce solution
company
Circadian,
unscheduled
absenteeism costs roughly $3,600 per year
for each hourly worker and $2,650 each year
for salaried employees. The costs can be
attributed to many factors including:






Wages paid to absent employees
High-cost replacement workers (overtime pay
for other employees and/or temporary
workers)

Administrative costs of managing
absenteeism





Poor quality of goods/services resulting from
overtime fatigue or understaffing
Reduced productivity
Excess manager time (dealing with discipline
and finding suitable employee replacements)




Safety issues (inadequately trained employees
filling in for others, rushing to catch up after
arriving as a replacement, etc)
Poor morale among employees who have to
“fill in” or do extra work to cover absent
coworkers
Absenteeism is an especially difficult problem to
tackle, because there are both legitimate and
poor excuses for missing work – and it can be
challenging for employers to effectively monitor,
control and reduce absenteeism. Unless a
company requires a written excuse from a
doctor, for example, it can be difficult to
determine if an employee is actually sick when
missing work. At the same time, however, it is
important for employers to consider the added
costs associated with a sick employee who
spreads an illness that gets the whole division –
or a lot of customers – sick.
To address problems like this, some
companies, cities and states have moved
toward a mandatory paid sick leave policy,
where each employee receives a specified
number of days each year to use when sick.
Opponents of mandatory sick leave argue that it
will ultimately cost businesses more money and
lead to increased layoffs. In addition, opponents
have concerns that employees will use all their
sick days whether or not they need them.
Advocates of such a move, however, argue that
paid sick leave makes economic sense because it
will help stop the spread of communicable
diseases in the workplace and in schools –
resulting in fewer instances of absenteeism in the
long run – and that sick employees will be able to
recover sooner.
The Centers for Disease Control, for example, states
that paid sick leave could have an especially
significant impact in the food service industry, where
it estimate that sick food handlers are responsible for
53% of norovirus (a particularly nasty form of
stomach virus) outbreaks. – One sick food handler
could theoretically infect dozens or even hundreds of
people, resulting in a large number of absences that
could have been avoided if that employee had simply
stayed home. Unfortunately, workers often either
need the money or are worried about being
terminated for calling in sick – even if it’s unpaid
leave – so they go to work even if they know they are
contagious.
In an effort to reduce absenteeism, some companies
offer incentives for going to work, such as earned
time off or lotteries for workers who do not have any
unexcused absences within a certain period. Other
firms might try a more proactive approach, putting
policies in place to focus on responses to employee
health concerns, including:







Physical health
Psychological health
Work-home balance
Environmental health
Economic health
The logic with this approach is that healthier,
happier employees will be more able and
motivated to go to work each day, resulting
in increased productivity and higher morale
for the individual workers as well as the entire
team. Although these employee wellness
strategies may be expensive to implement
and maintain, they can have a net positive
effect on a company’s bottom line – and
that’s good for business.
Absenteeism costs U.S. companies billions
of dollars each year in lost productivity,
wages, poor quality of goods/services and
excess management time. In addition, the
employees who do show up to work are often
burdened
with
extra
duties
and
responsibilities to fill in for absent
employees, which can lead to feelings of
frustration and a decline in morale.
Occasional absences from work are inevitable –
people get sick or injured, have to take care of
others, or need time during business hours to
handle personal business. It is the habitual
absences that are most challenging to employers,
and that can have the greatest negative effect on
coworkers. Because missed work days have a
profound financial effect on a company’s bottom
line, it is beneficial for most businesses to
implement strategies to equitably monitor,
reduce and respond to absenteeism.


Find out whether the absent employee missed
work voluntarily or involuntarily.Involuntarily
means illness or another unavoidable reason-this is the kind of absenteeism you shouldn't
concern yourself with as a manager, unless some
kind of counseling or assistance could help the
employee regain his or her health. Voluntary
absenteeism is the kind you need to worry about.
This occurs when an employee is absent without
good reason. Get documentation--for example, a
doctor's note--to ascertain whether an absence
was involuntary or voluntary.


Decide
whether
the
absenteeism
is
excessive. Compare the employee's attendance
record with other employees' records. If one
employee's record is way out of line, unless there
are extenuating circumstances, that's probably
excessive absenteeism.




Meet with the employee to explore the
absences. Keep your discussion friendly and
oriented toward understanding and solving the
problem, not placing blame and dispensing
discipline.






If things don't get better, explain the problem to the
employee and request improved performance. Employees
may not know their absences are affecting others unless
you tell them and ask them to improve.
Put the problem in writing. Make sure you give the
employee a copy of the written notice. In addition, you
should also put one in his or her personnel file.
Most employees will straighten up and start coming to
work regularly during this process. If they don't, however,
you'll be prepared to terminate them, if necessary, if you
follow these guidelines.

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Causes and Costs of Absenteeism

  • 1.
  • 2. What is it? Absenteeism is an employee’s intentional or habitual absence from work. While employers expect workers to miss a certain number of workdays each year, excessive absences can equate to decreased productivity and can have a major effect on company finances, morale and other factors. This article looks at the causes of absenteeism, the costs of lost productivity and what employers can do to reduce absenteeism rates in the workplace.
  • 3.   Bullying and harassment – Employees who are bullied or harassed by coworkers and/or bosses are more likely to call in sick to avoid the situation Burnout, stress and low morale – Heavy workloads, stressful meetings/presentations and feelings of being unappreciated can cause employees to avoid going into work. Personal stress (outside of work) can lead to absenteeism.
  • 4.    Childcare and eldercare – Employees may be forced to miss work in order to stay home and take care of a child/elder when normal arrangements have fallen through (for example, a sick caregiver or a snow day at school) or if a child/elder is sick. Depression – According to the National Institute of Mental Health, the leading cause of absenteeism in the United States is depression. Depression can lead to substance abuse if people turn to drugs or alcohol to self-medicate their pain or anxiety. Disengagement – Employees who are not committed to their jobs, coworkers and/or the company are more likely to miss work simply because they have no motivation to go.
  • 5.   Illness – Injuries, illness and medical appointments are the most commonly reported reasons for missing work (though not always the actual reason). Not surprisingly, each year during the cold and flu season, there is a dramatic spike in absenteeism rates for both full-time and parttime employees. Injuries – Accidents can occur on the job or outside of work, resulting in absences. In addition to acute injuries, chronic injuries such as back and neck problems are a common cause of absenteeism.
  • 6.   Job hunting – Employees may call in sick to attend a job interview, visit with a headhunter or work on their resumes/CVs. Partial shifts – Arriving late, leaving early and taking longer breaks than allowed are considered forms of absenteeism and can affect productivity and workplace morale.
  • 7. The Gallup-Healthways Well-Being Index surveyed 94,000 workers across 14 major occupations in the U.S. Of the 77% of workers who fit the survey’s definition of having a chronic health condition (asthma, cancer, depression, diabetes, heart attack, high blood pressure, high cholesterol or obesity), the total annual costs related to lost productivity totaled $84 billion. According to the survey, the annual costs associated with absenteeism vary by industry, with the greatest loss occurring in professional occupations (excluding nurses, physicians and teachers); the 14 occupations and corresponding costs of lost productivity are shown in Figure 1.
  • 8.
  • 9. According to Absenteeism: The Bottom-Line Killer, a publication of workforce solution company Circadian, unscheduled absenteeism costs roughly $3,600 per year for each hourly worker and $2,650 each year for salaried employees. The costs can be attributed to many factors including:
  • 10.    Wages paid to absent employees High-cost replacement workers (overtime pay for other employees and/or temporary workers) Administrative costs of managing absenteeism
  • 11.    Poor quality of goods/services resulting from overtime fatigue or understaffing Reduced productivity Excess manager time (dealing with discipline and finding suitable employee replacements)
  • 12.   Safety issues (inadequately trained employees filling in for others, rushing to catch up after arriving as a replacement, etc) Poor morale among employees who have to “fill in” or do extra work to cover absent coworkers
  • 13. Absenteeism is an especially difficult problem to tackle, because there are both legitimate and poor excuses for missing work – and it can be challenging for employers to effectively monitor, control and reduce absenteeism. Unless a company requires a written excuse from a doctor, for example, it can be difficult to determine if an employee is actually sick when missing work. At the same time, however, it is important for employers to consider the added costs associated with a sick employee who spreads an illness that gets the whole division – or a lot of customers – sick.
  • 14. To address problems like this, some companies, cities and states have moved toward a mandatory paid sick leave policy, where each employee receives a specified number of days each year to use when sick.
  • 15. Opponents of mandatory sick leave argue that it will ultimately cost businesses more money and lead to increased layoffs. In addition, opponents have concerns that employees will use all their sick days whether or not they need them. Advocates of such a move, however, argue that paid sick leave makes economic sense because it will help stop the spread of communicable diseases in the workplace and in schools – resulting in fewer instances of absenteeism in the long run – and that sick employees will be able to recover sooner.
  • 16. The Centers for Disease Control, for example, states that paid sick leave could have an especially significant impact in the food service industry, where it estimate that sick food handlers are responsible for 53% of norovirus (a particularly nasty form of stomach virus) outbreaks. – One sick food handler could theoretically infect dozens or even hundreds of people, resulting in a large number of absences that could have been avoided if that employee had simply stayed home. Unfortunately, workers often either need the money or are worried about being terminated for calling in sick – even if it’s unpaid leave – so they go to work even if they know they are contagious.
  • 17. In an effort to reduce absenteeism, some companies offer incentives for going to work, such as earned time off or lotteries for workers who do not have any unexcused absences within a certain period. Other firms might try a more proactive approach, putting policies in place to focus on responses to employee health concerns, including:      Physical health Psychological health Work-home balance Environmental health Economic health
  • 18. The logic with this approach is that healthier, happier employees will be more able and motivated to go to work each day, resulting in increased productivity and higher morale for the individual workers as well as the entire team. Although these employee wellness strategies may be expensive to implement and maintain, they can have a net positive effect on a company’s bottom line – and that’s good for business.
  • 19. Absenteeism costs U.S. companies billions of dollars each year in lost productivity, wages, poor quality of goods/services and excess management time. In addition, the employees who do show up to work are often burdened with extra duties and responsibilities to fill in for absent employees, which can lead to feelings of frustration and a decline in morale.
  • 20. Occasional absences from work are inevitable – people get sick or injured, have to take care of others, or need time during business hours to handle personal business. It is the habitual absences that are most challenging to employers, and that can have the greatest negative effect on coworkers. Because missed work days have a profound financial effect on a company’s bottom line, it is beneficial for most businesses to implement strategies to equitably monitor, reduce and respond to absenteeism.
  • 21.  Find out whether the absent employee missed work voluntarily or involuntarily.Involuntarily means illness or another unavoidable reason-this is the kind of absenteeism you shouldn't concern yourself with as a manager, unless some kind of counseling or assistance could help the employee regain his or her health. Voluntary absenteeism is the kind you need to worry about. This occurs when an employee is absent without good reason. Get documentation--for example, a doctor's note--to ascertain whether an absence was involuntary or voluntary.
  • 22.  Decide whether the absenteeism is excessive. Compare the employee's attendance record with other employees' records. If one employee's record is way out of line, unless there are extenuating circumstances, that's probably excessive absenteeism.   Meet with the employee to explore the absences. Keep your discussion friendly and oriented toward understanding and solving the problem, not placing blame and dispensing discipline.
  • 23.    If things don't get better, explain the problem to the employee and request improved performance. Employees may not know their absences are affecting others unless you tell them and ask them to improve. Put the problem in writing. Make sure you give the employee a copy of the written notice. In addition, you should also put one in his or her personnel file. Most employees will straighten up and start coming to work regularly during this process. If they don't, however, you'll be prepared to terminate them, if necessary, if you follow these guidelines.