Do you bear the brunt of losses and receive bitter and cold looks when the performance graph goes down?
When employees underperform, the curse of low numbers is dumped on higher-level employers and HR teams. The most common reason for employee inattention is employee absenteeism.
Taking regular days off of work, arguing at the workplace when asked to give work updates, and taking day-long lunch breaks are all signs of employee absenteeism. Inattentiveness of employees and performance drops are two evident causes of project failures: low bottom line and high mental stress for decision-makers.
Regulating an employee's attendance and setting legitimate leave management practices with absence management software can build trust in employees, calm them down, and reduce their absenteeism.
Don't take a leave to learn more about employee absenteeism. Be present to read more.
Employee absenteeism is defined as the perpetual absence of employees from a workplace. It occurs due to several underlying factors, such as work dissatisfaction, job transition, or procrastination. There are two types: innocent and culpable.
While both are costly, innocent absenteeism occurs for legitimate reasons, but culpable absenteeism occurs when an employee deliberately avoids work.
According to the Bureau of Labor Statistics, the national absence rate was 3.1% in 2023, which was an improvement from 3.6% in 2022. Though the rate of employee absenteeism is gradually reducing, companies still face million—and billion-dollar losses due to low quality of work and the lack of focus on irregular and free-loading employees.
Eventually, organizations suffer reduced productivity due to planned or unplanned absenteeism. As employees continue to take leave, the scale of work increases, and businesses lose to the competition. Even if employers take the initiative to hire replacements, adjusting them to the process still takes time.
Most companies understand the legitimate reasons for employees' absences. Chronic health conditions are caused by some and others by personal causes, including family issues and elderly or child care.
Intentional absenteeism is more ambiguous. The most common times of absenteeism are Mondays, Fridays, and around holidays, sporting events, or festivals. Individuals most likely to intentionally miss work are those who:
Ultimately, these reasons boil down to stress and personal needs, and it’s up to employers to identify the issues behind the absences and how best to resolve them.
There is no way to be subtle about confronting an employee who takes it lightly. While you suffer the aftermath of their underperformance, taking a few firm measures is necessary for them to accept their wrongdoing.
Unfortunately, leaders sometimes have to hit where it hurts. Being lenient and kind regarding an employee's absence is good for a temporary period. However, if you can spot an employee's productivity declining, use a reward and penalize mechanism.
Be open to crediting employees who aced their tasks and not those who indulged in procrastination and longer work breaks. This sounds extreme, but you must rip the band-aid to heal the bruise. This practice would shock the employees' systems and motivate them to work harder.
Talking the employee through their concerns, questions, and worries and understanding what support they need from your end is also a good way to have the talk. Identifying where the employee might need guidance and support and putting employees on a performance improvement plan (PIP) also initiates a final call in an employee's mind to work hard and level up in performance.
However, if the employee continues to showcase disinterest and absenteeism, the final call is to let them go.
HR can mediate between an employee and an employer. It also can take a neutral stand and build peace treaties for the smooth functioning of an organization. If you can sense discomfort and distaste from your employees, suggest politely to speak to the HR team or schedule a 1x1 with any higher level authority to exhibit transparency and good workplace culture.
Again, cutting someone's appraisal might sound merciless. However, when an organization suffers millions of dollars in loss due to employees' lack of work sense and underperformance, reducing appraisal checks is a certain outcome. Convey the reduction in appraisal to the employees who don't take their work seriously and warn them to buck up and take their work seriously to continue growing in their careers.
According to the Bottom Line Killer, unscheduled chronic absenteeism conservatively costs $3600 per hourly employee per year and $2650 per salaried employee per year and is the main worry for US employers. Depending on the size of your business, you could be losing anywhere from thousands to millions of dollars due to absenteeism. Here’s how you can take charge and reduce absenteeism in your organization.
Before tackling the issue of absenteeism, you should develop a comprehensive absenteeism policy that everyone clearly understands. This policy will ideally cover:
Research has found that absenteeism policies that include recognition and rewards for being present and consequences for excessive absenteeism are more effective. Rather than having a policy that only provides for negative consequences, try to include some positive reinforcement policies as well.
A great attendance policy will guide everyone, not just on what is expected but also on penalties and rewards for absenteeism. The policy should clearly define the differences between excused and unexcused absences.
An excused absence includes those where:
Unexcused absences are those that don’t meet any of the above-mentioned guidelines. There are times when emergencies happen, and your policy should allow that. For example, if an employee experiences a sudden sickness or accident/injury, this can’t be controlled, so ensure you have something in place to address such instances. In these cases, you can require the employees to provide you with a doctor’s note or proof of their absence.
Sometimes, a valuable employee might experience a personal hardship, perhaps a death in the family, transportation problems, or a sudden need to relocate. Remember such instances when building a comprehensive attendance policy because these things can and do happen. You don’t want to have to terminate an employee for an unfortunate personal event or circumstance.
Depending on your company’s structure, keeping track of absences can be more challenging for some than others. Brick-and-mortar establishments can physically monitor employees when they are working. However, many of today’s organizations are offering either remote work or flexible scheduling. In fact, remote work has increased over the past 10 years by a staggering 91 percent.
Companies with field or remote workers face unique challenges when tracking absences. In these situations, cloud-based, time-tracking, and shift-scheduling technology can be a lifesaver. Scheduling is critical for maintaining productivity, decreasing turnover rates, keeping operations running smoothly, and assisting in payroll and time tracking.
Even for in-office establishments, there are new, more accurate, and effective ways to use things like kiosk clocks and web-based time tracking solutions that simplify tracking employees’ hours and absences. No-show and no-call employees cost companies a lot of money, as well. If an employee is a no-show/no-call worker, make sure you have a clear process on how to deal with it.
Once you have a plan to monitor absences and an absenteeism policy, you and your employees will be clear about what they can expect with repeated, unapproved absences. Bear in mind that you must be prepared to follow these procedures.
If you have an employee who is historically punctual but suddenly tardy more often than not, there may be a legitimate reason why. Likewise, employees who are typically reliable but become frequently absent might be experiencing something outside of work that’s affecting their presence.
As their leader, you must determine whether excessive absenteeism or tardiness warrants consequences (e.g., blatant disregard) or if it could be remedied with an adjustment to their scheduling (e.g., transportation or childcare issues).
To figure out how many absences are too many, consider the averages. There are currently no PTO requirements from the federal government, but many companies are required to honor the Family and Medical Leave Act (FMLA) which provides up to 12 weeks of unpaid leave.
The CDC’s most recent data show that adults ages 18 to 64 missed an average of four days of work from the previous year. The BLS reports that over half of employers provide five to nine days of paid sick leave after one year of service; a quarter offers fewer than five days, and another quarter offers more than 10 per year. Depending on the size of your organization, these numbers can help you determine how many absences are too many for your specific business.
When you have an absentee policy, it’s important to stick to it. Excessive absenteeism doesn’t just cost in dollars. Research shows that around 45.5% of respondents reported absenteeism in 4 weeks and were losing an average of 48.7 work hours.
While its root cause is difficult to understand, enforcing a few employee policies for offenders might reduce these numbers.
For habitual offenders, a plan of action might be:
It’s important that you, your supervisor, or the HR department keep accurate records of all of these offenses and the corresponding actions taken. It’s also important to ensure that everyone is treated with the same expectations and consequences. This helps control excessive absenteeism and improves company morale.
You should also ensure you are prepared to follow up with the procedures outlined. Of course, terminating someone is uncomfortable, but sometimes, it is essential for the company's betterment and overall employee morale.
Praise and recognition for a “great job” are appreciated by workers, naturally, but these blanket praises don’t really address their punctuality specifically.
Rather than remarking positively in general, try to be more specific: I love how reliable you’ve been. It’s great to be able to count on you being here. I love the fact that you’re always on time.
These statements reinforce a specific action that psychologist Carol Dweck says is much more effective in motivating and inspiring people.
An attendance policy doesn’t have to be complex and complicated, full of legal and HR jargon. A simple example is something like this:
Good attendance is essential to every job and demonstrates a responsible, professional attitude. Conversely, unexcused or excessive absences are serious offenses.
Please follow these guidelines when you are absent:
No definite rule can govern discipline for excessive absenteeism or tardiness. Individual circumstances and job demands differ. Therefore, we reserve the right to discipline you for excessive absenteeism or tardiness any time we determine that your absences or tardies, if not protected by law, are unreasonably disruptive to our work or detrimental to efficient operations or employee morale.
We hear much about things like work/life balance, employee well-being, and company culture.
That’s because having a healthy work environment that promotes overall well-being is actually helpful for companies’ bottom lines. Happy workers are more productive, so if you’re seeing a decline in employee morale, engagement, and presence, it might be a good time to take a look at your workplace culture.
When your employees feel they are a part of something bigger than themselves and matter to your company, they will be likelier to perform their best. Instead of finding excuses to miss work, they will embrace their role in your organization because they feel it is important and not just a way to earn a paycheck.
Remember, your attendance policy doesn’t have to be so complicated that nobody can understand it, nor does it need to be overbearing. Consistency and simplicity can go a long way.
Ensure it is included in your employee handbook and distributed throughout your workplace so everyone knows your expectations for their attendance. Ensure that all supervisors are also clear on the expectations and consequences associated with absences. If you have one supervisor or team leader going “by the book” and another who tends to let things slide, you risk creating an environment of mistrust and inconsistency.
Yes, but you should consider the genuineness of an employee’s illness. You can request prescriptions stamped by a medical professional. Also, check whether they are under legal protection, like employees with disabilities or accidental insurance.
You should be subtle in your approach. Communicate that excessive absenteeism leads to company fallbacks and cash flow issues and try to signify the relationship between their laid-back attitude and declining team productivity.
Leave records, project incompletion data, late clock-ins and early clock-outs, project quality control, and comparison with a peer can act as evident records of employee performance, which can report employee absenteeism.
It can include mundane excuses like road traffic, construction problems, mental well-being, or attending a personal event. While these can be legitimate reasons to leave early, excessive or repeated usage of these terms can hint at employee absenteeism.
Be clear with your findings about employee absenteeism. Have all the hard data handy to support your claims. Conduct self-audits of the responsible employee’s work and notice where their performance dipped. After gathering proof, you can report the incident.
While we can’t eliminate absenteeism completely, it is clearly a problem that most companies face. With planning, communication, transparency, and accountability, your company can significantly improve productivity and efficiency by ensuring your people come to work when they should and enjoy their time there.
Another less conventional way to deal with employee absenteeism is introducing an unlimited PTO program to your office. See how you might benefit from a shift in policy today.
This article was originally published in 2020 and has been updated with new information.
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