case study employee absence answer

Employee Absenteeism, A Case Study with reference to RMM Foods Private Limited

• August 2014

• Jain Deemed-to-be University

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Tackling Workplace Absenteeism: Causes, Effects, and Solutions

• Last updated on May 29, 2024

Workplace absenteeism is a widespread issue that can significantly impact productivity, morale, and profitability. It refers to frequent, unplanned absences that extend beyond acceptable limits, disrupting workflow and affecting team dynamics. Recognizing when absenteeism becomes problematic and addressing its underlying causes is crucial for organizations seeking to foster a healthy, engaged workforce.

Integrating diversity, equity, and inclusion (DEI) initiatives is vital in tackling absenteeism. By creating a supportive and inclusive environment where employees feel valued and understood, organizations can reduce absenteeism and cultivate a more committed workforce.

Common causes of absenteeism

Absenteeism in the workplace isn’t just about employees not showing up; it often stems from deeper issues within an organization. Understanding these root causes is essential for developing effective solutions. Let’s explore some of the primary factors contributing to absenteeism:

• Low employee engagement: Disengaged employees who feel their efforts go unnoticed or unappreciated are more likely to take unapproved leaves, leading to absenteeism.
• Lack of flexible work schedules: Rigid schedules that fail to accommodate personal responsibilities can contribute to frequent absences as employees struggle to maintain a work-life balance.
• Mental health issues and burnout: Unaddressed mental health concerns and excessive workloads can lead to burnout, prompting employees to take more sick days to cope. An employee who is overwhelmed by constant stress begins taking more sick days to cope. Providing access to mental health resources and promoting a balanced workload can help alleviate these issues. Regular breaks and a supportive work environment are crucial in preventing burnout.
• Workplace harassment : A toxic work environment marred by harassment can cause employees to avoid the hostility, resulting in increased absenteeism. An employee facing ongoing harassment may avoid work to escape the hostility. Enforcing strict anti-harassment policies and providing safe channels for reporting can help create a safer, more inclusive workplace.
• Poor leadership : Ineffective leadership practices, such as micromanagement and lack of constructive feedback, can damage team morale and contribute to absenteeism. For example, a manager who constantly criticizes without offering constructive feedback can damage team morale. Adopting positive leadership practices, such as regular one-on-one meetings and supportive feedback, can foster a more motivating work environment.
• Health issues and injuries : Chronic health problems and workplace injuries often necessitate frequent medical appointments, leading to regular absences. An employee with a recurring health condition may need frequent medical appointments, resulting in regular absences. Ensuring a safe work environment and offering comprehensive health benefits can mitigate this issue.
• Family responsibilities : Balancing work with caregiving duties can be challenging, prompting employees to miss work to manage family obligations. This is why providing flexible scheduling and support programs like on-site childcare can help employees manage their family responsibilities without resorting to absences.
• Job hunting : An employee dissatisfied with their current role may take time off to attend job interviews. Enhancing job satisfaction and offering clear career progression paths within the organization can reduce the likelihood of employees looking elsewhere. Professional development opportunities can also help retain talent and reduce absenteeism.

Uncommon and overlooked causes

While the common causes are well-documented, some less apparent factors can contribute to absenteeism:

• Virtual absenteeism: Employees may appear online but fail to actively contribute, masking absenteeism in remote or hybrid work environments. Addressing this requires monitoring performance and engagement metrics.
• Cultural and generational differences: Diverse cultural backgrounds and generational expectations can influence attitudes towards absenteeism, emphasizing the need for tailored engagement strategies.
• Economic pressures and financial stress : Financial hardships can lead to absenteeism as employees take on multiple jobs or face economic difficulties, reducing the importance of financial wellness programs.
• Lack of career progression opportunities : The absence of clear career paths and growth opportunities can demotivate employees, increasing the likelihood of absenteeism.

Effects of absenteeism on the organization

Workplace absenteeism is a pervasive issue that can have far-reaching consequences for organizations, affecting everything from financial performance to team morale and productivity. Understanding the direct and indirect impacts of absenteeism is crucial for developing effective strategies to manage and mitigate its effects.

Direct financial costs

The financial burden of absenteeism can be substantial. Organizations continue to pay salaries to frequently absent employees, directly impacting their bottom line. To maintain productivity, companies often resort to paying overtime to employees covering for their absent colleagues, increasing labor costs and potentially leading to burnout among the overburdened staff. In some cases, hiring temporary staff becomes necessary, incurring additional costs associated with recruitment, training, and wages. Furthermore, absenteeism can result in lost productivity, missed deadlines, and reduced output, all of which negatively impact revenue.

Indirect costs and hidden impacts

Beyond the immediate financial toll, absenteeism can have several indirect and hidden costs that should not be overlooked:

• Employee morale: When team members are frequently absent, their colleagues are often required to take on additional responsibilities, leading to frustration and decreased morale. Over time, this can create a toxic work environment where employees feel overburdened and undervalued.
• Burnout and turnover: The increased stress on remaining staff due to absenteeism can result in higher rates of burnout and, ironically, more absenteeism, creating a vicious cycle that is difficult to break.
• Onboarding and training: Regular absenteeism may necessitate frequent onboarding of temporary staff or new hires, consuming valuable time and resources for training and acclimation to company processes.
• Team dynamics and productivity: Frequent absences disrupt team dynamics and overall productivity. When key team members are missing, it can slow down projects, reduce the effectiveness of the entire team, and lead to missed opportunities and a decline in work quality.
• Legal and compliance risks: Failing to properly manage absenteeism can pose legal and compliance risks related to workplace harassment, inadequate health and safety measures, or failure to accommodate legitimate health needs, potentially resulting in legal challenges, financial costs, and reputational damage.

Addressing and reducing absenteeism

Effectively addressing absenteeism requires a comprehensive approach that combines strategic initiatives, data-driven insights, and a commitment to fostering a supportive and inclusive work environment. Here’s how organizations can tackle absenteeism:

I mplementing comprehensive wellness programs: Wellness programs that address both physical and mental health can significantly reduce absenteeism. Providing access to mental health services, stress management resources, health education, on-site fitness classes, and wellness challenges can promote overall well-being and reduce unplanned leave. . Companies can go a step further by offering on-site fitness classes, nutrition workshops, and wellness challenges to encourage a healthy lifestyle.

Creating a flexible and inclusive work environment: Offering flexible work arrangements, such as remote work options and adjustable hours, can help employees balance their personal and professional lives. An inclusive work environment that values diversity, equity, and inclusion (DEI) is equally important. Utilizing tools like Diversio’s platform, which uses AI to provide tailored recommendations based on DEI data, can help organizations create a more inclusive workplace where employees feel valued and supported.

Fostering positive leadership and management practices: Positive leadership practices, such as providing regular feedback, recognition, clear communication, and mentorship programs, create a supportive environment that reduces absenteeism and enhances employee satisfaction and retention. For example, a manager who regularly acknowledges employees’ contributions and provides opportunities for growth can boost morale and reduce absentee rates.

Enhancing employee engagement and recognition: Engaged employees are less likely to miss work or leave. Recognition programs, achievement celebrations, and regular engagement activities can boost morale, commitment, and motivation to attend work regularly. For example, an organization could implement an employee of the month program, celebrate achievements in team meetings, or offer small rewards for meeting performance goals. These activities make employees feel appreciated and motivated to attend work regularly.

Leveraging data-driven approaches: Real-time engagement data, customizable surveys, and predictive analytics provide actionable insights that help organizations identify patterns and address underlying causes of absenteeism. Diversio’s platform offers customizable engagement surveys and uses AI to analyze DEI data, providing real-time insights and tailored recommendations for developing targeted strategies, which helps in pinpointing the root causes of absenteeism and developing targeted strategies to address them.

Long-term strategies for sustainable solutions

Embedding dei into organizational culture.

Integrating diversity, equity, and inclusion (DEI) into the organizational culture is important for creating a sense of belonging and reducing absenteeism. When employees feel valued and included, they are more likely to be engaged and committed to their work, thereby reducing the likelihood of unplanned absences.

A significant aspect of this integration is assessing an organization’s DEI maturity. This means evaluating how well DEI principles are integrated into the company’s practices and spotting areas for improvement. Organizations with higher DEI maturity levels typically see better engagement and lower absenteeism rates. Diversio’s platform, for example, provides tools to help organizations assess their DEI maturity and offers tailored recommendations for improvement based on real-time data and AI-powered insights.

While there are common misconceptions about DEI that can hinder its effective implementation. Some believe DEI is just a compliance effort or a one-size-fits-all approach. In reality, DEI is a strategic advantage that, when customized to an organization’s unique needs, can signifivantly drive innovation, employee satisfaction, and market competitiveness.

Another misconception is that DEI success is hard to measure. However, platforms like Diversio offer comprehensive analytics to track and analyze DEI progress, providing clear benchmarks and measurable outcomes that demonstrate the tangible impact of DEI initiatives, where organizations can gain insights into their DEI maturity and receive tailored recommendations to strengthen their inclusive culture further

The connection between DEI and reducing absenteeism

The link between DEI and reduced absenteeism is supported by research and case studies. A study by McKinsey & Company found that organizations with higher levels of diversity are 35% more likely to outperform their peers. This performance is often linked to higher employee engagement and lower turnover, both of which are directly connected to reduced absenteeism. Employees in inclusive environments feel more comfortable and supported, which decreases their need to take unplanned leave.

Additionally, creating a culture of inclusion addresses many root causes of absenteeism. For instance, a diverse and inclusive workplace can mitigate issues like workplace harassment and poor leadership, which are significant contributors to absenteeism. By ensuring that all employees feel safe and respected, organizations can create a more supportive environment that encourages regular attendance.

Investing in DEI also involves continuous learning and improvements. Organizations must stay updated with best practices and integrate feedback from employees to refine their DEI strategies. This regularly commitment to DEI not only helps in retaining talent but also in maintaining a productive and engaged workforce.

Consider the impact of a toxic work environment plagued by discrimination, harassment, and poor leadership. In such a setting, it’s not surprising that employees would feel disengaged and unmotivated, leading to higher rates of absenteeism. However, by prioritizing DEI and creating an inclusive culture, organizations can address these root causes and cultivate an environment where employees feel safe, respected, and empowered to bring their best selves to work each day.

Practical implementation and benefits

To effectively embed DEI into the organizational culture, companies can leverage several practical strategies like:

• Regular training and workshops: Conduct DEI training sessions to educate employees and managers on the importance of inclusion and how to practice it daily.
• Employee resource groups: Create groups that support various demographics within the workforce, providing an environment for voices to be heard and foster a sense of community.
• Transparent communication: Maintain open lines of communication about DEI initiatives and progress, ensuring all employees are informed and involved in the process.

These strategies contribute to a more inclusive workplace, which can significantly reduce absenteeism. For example, organizations that successfully implement DEI initiatives often report lower absenteeism rates as employees feel more connected and committed to their workplace. In such an environment, employees feel valued, respected, and empowered to bring their authentic selves to work. They are less likely to experience the stress and disengagement that often lead to absenteeism, and instead, they show up with enthusiasm and dedication, contributing to the organization’s success.

Developing a proactive DEI ecosystem

An active DEI environment eliminates many of the underlying causes of truancy. For instance, a workplace that has policies against harassment and discrimination and encourages respect and diversity is likely to record low levels of truancy. Employees who have a sense of security and recognition at the workplace are less likely to be absent from work without prior notice. Also, organizations that have good DEI policies in place can help employees with mental health issues because they will be in a workplace that accepts them and their differences.

An effective DEI ecosystem is a continuous process that involves the support of the leadership, HR, and employees to ensure that DEI principles are implemented throughout the organization.

DEI efforts should be led from the top, with leadership showing a clear commitment to DEI goals. To address DEI issues, leaders should ensure that DEI principles are part of the organizational culture and mission, engage in DEI training, and practice DEI. This visible commitment from leadership is important for the entire organization, as it demonstrates that DEI is a priority.

HR departments are also tasked with ensuring that diversity and inclusion policies are followed within an organization, including equal opportunities in recruitment, fair assessment, and equal treatment in benefits. Also, HR can help to conduct periodic DEI training and seminars to ensure that all employees and managers understand the concept of diversity and how it can be applied in the workplace.

Employees are also a significant factor in a proactive DEI environment. The promotion of the formation of employee resource groups (ERGs) gives a chance to people with similar characteristics in the working environment to discuss their experiences and help each other. ERGs can assist in creating a feeling of unity and inclusion, which is very important in the elimination of truancy. Furthermore, it is crucial to keep all employees abreast of DEI efforts and plans to make them feel engaged and inclusive.

Imagine a world where DEI is a collective process in which all the organizational members are involved in enhancing the organization’s inclusiveness. Leadership begins the process by ensuring that DEI becomes part of the organizational culture and practice through modeling. HR ensures that diversity and inclusion are integrated into the company’s policies and procedures in a fair manner. Employees engage themselves, and express their opinions through ERGs and help in the further enhancement of DEI practices.

In this proactive DEI ecosystem, employees do not feel discriminated against, marginalized, or oppressed, but rather, they are valued and encouraged to be who they are at the workplace. They are not likely to go through stress, discrimination or mental health issues that cause absenteeism but rather present themselves to work with a sense of purpose, belonging and commitment, thus enhancing the organization’s performance while at the same time enjoying personal and professional growth.

Unique solutions and innovations

Combating workplace absenteeism is best done through the use of new solutions that incorporate the best of technology and DEI. Here are some of the specific ideas and approaches that can be used to address the issue of absenteeism more effectively.

AI-powered actionable Insights

AI-driven engines work on DEI data to give specific suggestions to organizations to combat particular absenteeism issues. For example, Diversio’s AI-based tool can detect trends and potential causes of truancy based on the level of participation, feedback, and other factors. This makes it possible for organizations to put in place specific measures that will help to meet the needs of the workforce, thus helping to minimize cases of absenteeism.

Real-time Benchmarking and Industry Comparisons Benchmarking

 DEI metrics against industry standards is important for the identification of areas that need to be improved and the setting of realistic goals. Diversio’s platform provides real-time analytics, which allow organisations to measure their DEI performance against national averages and competitors. This understanding enables organizations to set realistic goals and monitor their performance periodically to improve their DEI strategies.

Expert-led DEI training and certifications

The development of DEI competency across the organization is crucial for the creation of an inclusive culture and to minimize the level of absenteeism. Training and certification by experts are useful in providing employees and leaders with the necessary knowledge and skills to support DEI. Diversio has a variety of training solutions that are aimed at training and enabling employees, from the frontline workers to the board of directors. These programs assist organizations in the implementation of DEI principles in their operations to enhance the experience of employees.

Through these extensive training solutions, organizations can develop a diverse and inclusive workforce that is knowledgeable about DEI and capable of implementing the principles in practice. People believe they can report prejudice, promote diversity, and support equality at work. This shared understanding and commitment to DEI create a ripple effect throughout the organization, thereby minimizing discrimination, harassment, and exclusion, which are some of the causes of absenteeism.

Examples of positive change

Google and Microsoft are some of the organizations that have adopted DEI strategies that have helped in minimizing the cases of absenteeism and enhancing the engagement of employees. Research indicates that organizations that embrace DEI policies have a 22% lower employee attrition rate.

When companies such as Google and Microsoft focus on DEI, it sets a tone for the rest of the industry and shows that everyone should have equal opportunities in the workplace. These organizations have invested a lot of time and effort into creating strong DEI plans , and the benefits are evident – less sick days, increased staff morale, and less attrition.

Imagine the impact on a company’s bottom line when absenteeism and turnover rates decrease by 22%. Not only does this translate to substantial cost savings, but it also fosters a more stable and productive workforce. Employees who feel valued and included are more likely to show up consistently, contributing to the organization’s success while thriving personally and professionally.

DEI is not just a compliance effort – Measuring ROI

DEI should be seen as a competitive edge rather than a tick-the-box exercise. Customization, tangible outcomes, and ownership across the organizational hierarchy are critical in DEI initiatives.

Unfortunately, DEI is often viewed as an afterthought or a box to tick, rather than a proactive approach to creating a more inclusive environment. However, this narrow perspective does not capture the full value of DEI as a competitive weapon. If approached systematically and tailored to the organization’s requirements, DEI can be a source of competitive advantage, increased organizational performance, and improved workforce productivity.

Furthermore, DEI initiatives should be quantifiable and include specific KPIs and reference points. This approach guarantees that organizations can monitor their performance, analyze their strengths and weaknesses, and measure the ROI of DEI efforts .

Most importantly, DEI initiatives cannot be a one-off effort but must be a collective responsibility of everyone within the organization. Managers at the top level of an organization, middle management, and employees at the lower level must all be committed to promoting equality in the workplace. It is only possible when organizations promote a culture of accountability and ownership of DEI initiatives across the company to guarantee sustainable change.

Key Performance Indicators (KPIs) and Benchmarks

The establishment of KPIs and benchmarks helps in measuring the performance of an organization and making informed decisions. Some essential metrics to measure include

Absenteeism rates: Compare the rate of the number of times employees are absent from work without prior notice before and after the DEI interventions. Lowering of the rates of absenteeism can be an evidence of the effectiveness of these measures in fostering a better working environment.

Employee engagement scores : Engagement surveys can be used to assess the extent to which employees feel connected and loyal to their work and the organization. Higher engagement scores are usually linked to lower levels of absenteeism and higher levels of productivity.

Productivity levels: Track efficiency indicators, including the rate of work per worker or the success rate of a project. Increased performance may indicate that DEI efforts have a positive effect on employees’ output.

Turnover rates: Track the number of employees that leave the company to determine the retention rates. A decline in turnover means that the employees are more appreciated and hence, there is no need for them to look for other job opportunities elsewhere.

Diversity metrics : Monitor the number of diverse people being hired, promoted, and occupying leadership roles. This way, DEI initiatives are not just a tick-the-box exercise but are actually making a difference in the representation of employees at all organizational levels.

E mployee satisfaction scores : Conduct periodic satisfaction surveys to determine the general level of employee satisfaction. Higher satisfaction scores mean that employees are happy and appreciated at the workplace, thus reducing cases of absenteeism.

Financial and social ROI

Calculating the financial and social ROI of DEI initiatives involves analyzing both quantitative and qualitative data:

•  Cost savings from reduced absenteeism: Estimate the cost benefits of the lower levels of absenteeism by factors like the reduction in overtime, less use of temporary employees, and improved efficiency.
• Increased revenue from higher productivity: Evaluate the effect of increasing productivity on the organization’s revenue. Higher output and efficiency can go hand in hand with financial performance since the two are directly related.
• Cost of DEI initiatives versus benefits: Estimate the expenses that are incurred in the implementation of DEI programs, including training and software costs, against the benefits that are accrued from lower rates of absenteeism, higher retention, and increased productivity.
• Enhanced reputation and stakeholder trust: While these may be difficult to measure, think about the reputational benefits of DEI initiatives for the organization. This is because positive perceptions from employees, customers and investors can open up new business opportunities and customer loyalty.

Addressing workplace absenteeism requires a holistic approach that goes beyond quick fixes. By investing in comprehensive DEI initiatives, including expert-led training, customized strategies, and data-driven decision-making, organizations can cultivate a supportive and inclusive work environment where employees feel valued, engaged, and motivated to show up consistently.

Key takeaways

•      Address root causes : Focus on engagement, leadership, and flexibility.
•      Implement wellness programs : Support physical and mental health.
•      Promote DEI : Create an inclusive and supportive work environment.
•      Leverage data : Use AI insights to tackle absenteeism.
•      Measure success : Track KPIs and calculate ROI to demonstrate impact.

Leveraging Diversio’s solution

Leveraging Diversio’s solution, which combines AI-powered analytics, real-time benchmarking , and tailored recommendations, organizations can pinpoint specific issues contributing to absenteeism and implement targeted interventions. This is because prioritizing DEI is not just a matter of compliance but a strategic imperative for organizations seeking long-term success. 

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Absenteeism in the Workplace: A Full Guide

What is absenteeism? A definition

The impact of absenteeism in the workplace

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Causes of Absenteeism

Compensation for sick leave, absenteeism and the economy: the opportunity cost of not working, sex differences in absence, substance abuse, 13 effective absenteeism policies .

Erik van Vulpen

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Managing Employee Attendance

Employee absenteeism is a significant problem for most organizations. In 2017 the U.S. Department of Labor (DOL) estimated that almost 3 percent of an employer's workforce was absent on any given day. The high price of absenteeism affects organizations even more when lost productivity, morale and temporary labor costs are considered. The cost of absence is often misunderstood, seen as not easily measured or dismissed as a negligible amount because the costs are largely included in payroll expenses. In addition, employers often fail to carefully track absenteeism. See Bureau of Labor Statistics .

To address this issue, HR professionals are encouraged to develop a business case and to devise and implement plans for managing employee attendance in their organizations. The following topics related to managing employee attendance are presented in this article:

• The direct and indirect costs of absenteeism.
• Collecting attendance data for the organization.
• Measuring the cost of absenteeism.
• Calculating rates of absenteeism.
• Strategies aimed at addressing the organization's particular attendance issues.
• Legal issues that come into play when designing and implementing absence control strategies.

Business Case

Many firms still underestimate the magnitude of the problem of employee absenteeism. Instead, they consider such absences to be part of "the cost of doing business." From that perspective, they fail to quantify the full impact of employee absenteeism. In addition, they also fail to appreciate the value of solutions that can reduce the costs and lost time that result from employees' being off work.

Compelling evidence supports quantifying and tracking the costs of absenteeism, both the hard-dollar costs (e.g., salary, benefits and replacement workers) and the soft-dollar costs (e.g., reduced morale, which cuts productivity). According to the Centers for Disease Control and Prevention (CDC) , "productivity losses from missed work cost employers $225.8 billion, or $1,685 per employee, each year." By carefully planning and designing policies, managing absenteeism and its administration, and tackling the underlying causes (e.g., health issues, employee morale), an organization can significantly reduce the impact of employee absences on its bottom line.

HR professionals need data about the costs of absences to their organization to gain management support for focusing on an absence control strategy. According to Kronos, the total cost of employee absences, unplanned and planned, is more than twice the average employer's cost for health care. See Total Financial Impact of Employee Absences in the U.S.

Organizations must remember that all lost time by an employee is connected. Lost time includes absences due to on-the-job injury, short-term disability and family or medical leave, as well as absences that are only a few days in duration. Employees who have frequent intermittent absences appear to be three to four times more likely be out on short-term disability. In addition, employees who leave the organization on short-term disability are more likely to make heavy use of group health benefits.

HR's Role

HR professionals are involved with every level of employee absenteeism. They draft and administer sick-leave policies and procedures, field calls from employees calling in sick, determine whether a doctor's note is required, send employees home who report to work with communicable illnesses, apply federal and state leave laws to the particular circumstances at their organizations, establish metrics and technology systems to monitor absenteeism, inform managers about absenteeism issues, and provide information about or recommend to senior executives measures to control absenteeism. See Managing Through Flu and Other Epidemics in the Workplace and Employers Use Technology and Outsourcing to Ease Leave Management .

Collecting Data on Absenteeism

The key to controlling absenteeism lies in correctly assessing the nature and extent of the problem, so the organization can determine and apply the proper controls.

A variety of tools—both manual and automated—are available to enable HR professionals to monitor employee attendance. Among the most common are:

• Absenteeism spreadsheets .
• Weekly time reports.
• Attendance policies.

Using whatever tools are at its disposal, an organization should design its research to determine:

• What absenteeism problems exist.
• Why the problems exist.
• Which solutions are appropriate.

The most common way to research the issue is to undertake a historical study to ascertain the extent of the problem and whether it is improving or worsening. Further analysis can help pinpoint specific problem areas, such as geographic locations, departments or divisions experiencing higher-than-usual absence rates. Once an organization attempts to control absenteeism, continued monitoring of the efforts is necessary to gauge their effectiveness and to make adjustments as needed.

Cost of Absenteeism

Organizations should consider the direct costs in payroll when calculating the cost of employee absences, as well as the impact of indirect costs, such as those associated with productivity loss.

Direct costs

Direct costs are the easiest to quantify, consisting of employee PTO, accounting for wages/salaries, overtime costs and replacement-worker costs.

Indirect costs

Despite the significance of direct costs, indirect costs represent the larger impact of employee absence. Indirect costs result when work is delayed or co-workers and supervisors are affected because of an employee's absence. Lost productivity is a significant consequence of unplanned absences that must be factored into an organization's indirect cost calculation. Even a modest reduction in unplanned absenteeism can result in significant productivity savings.

Measuring the costs of absenteeism

Several methods for determining the cost of absenteeism in an organization are available.

Some of the most common methods are to calculate:

• Loss in multiples of salary. Studies have shown that the cost of each person who is absent is actually a multiplier somewhere between one and two applied to the cost of the salary. The more impact a person has on a team or department, the greater the multiplier.
• Loss in full-time equivalent positions. Another measure of absenteeism is to express cumulative lost time in terms of full-time equivalent positions.
• Loss in productivity and quality. Employers can measure and evaluate the cost-effectiveness or quality in disability management and absence management programs and benchmark their results against other firms.

Calculating Rates of Absenteeism

Absenteeism rates can be calculated in a variety of ways and determined by division, department, shift, location, type of employee, union/nonunion status, job family and other factors. Absenteeism may be particularly critical in some jobs and shifts when substitute workers have to be employed to replace the absent employees. Calculations can be made on a weekly, monthly, quarterly, semiannual or annual basis. Daily or seasonal patterns, such as frequent Monday or Friday absences, may also exist.

Organizations can gain additional insight into their absenteeism issues by separating data according to short- and long-term absences. Clearly, an employee who is absent five times for periods of three days presents different problems from an employee who is absent 15 times for one day. Computing the number of absences by their durations can be useful in developing absenteeism policies and controls.

The following are three common ways of measuring absenteeism, each of which can provide an organization with different insights into its absenteeism problem.

Incidence rate

The incidence rate is a measure of the number of absences per 100 employees during any given work period. In its basic form, this measure does not account for the duration of an employee's absence. The basic formula for the incidence rate is:

Number of incidents of absence x 100 Number of employees

Thus, an organization with 1,000 employees and 220 incidents of employee absence during one month has a monthly absence incidence rate of 22.

Inactivity rate

The inactivity rate measures the percentage of time usually worked or scheduled that is lost due to absenteeism. The formula is:

Total hours of absence x 100 Total hours scheduled to work

One thousand employees scheduled to work eight hours per day during a 22-day work month total 176,000 scheduled work hours for the month. If total employee absences equal 400 days (3,200 work hours) during the month, the monthly inactivity rate would be 1.8.

Severity rate

The severity rate is a measure of the average time lost per absent employee during a specified time period. The basic formula for this measure is:

Average number of hours lost by absent employees x 100 Average number of hours normally worked by absent employees

If 220 employees lost 3,200 hours during a month through absence, they averaged 14.55 hours lost per absent employee. If each of them was scheduled to work 22 days of eight-hour shifts during the month, they averaged 176 hours of time normally worked. The severity rate calculates to 8.3.

Another version of this measure is as follows:

Number of employee days lost through absence in a specified period x 100 Average number employees x number of workdays in the period

If 400 days were lost through absence in one month and 1,000 employees were scheduled to work 22 days (for a total of 22,000 days), the severity rate would be 1.8.

Strategies for Managing Employee Absences

Common approaches to absence management include:

• Taking disciplinary action for excessive absenteeism.
• Verifying illness after a specified period of time.
• Using PTO banks to help reduce unscheduled leave.
• Focusing on personal recognition for employees with positive attendance records and behaviors.
• Encouraging planned vacations to allow employees to recharge.

Employers need to ensure that their policies and practices are comprehensive, promote appropriate employee behaviors, and are well-communicated and understood by employees and supervisors alike. See How to Design a 21st Century Time-Off Program.

Supervisor training and designated HR support

Though centralized systems for tracking attendance are increasingly popular, supervisors still spend considerable time managing absences. Much of this time is spent locating replacement workers to cover for absent employees. Although supervisors are responsible for enforcing the organization's attendance policy, they often lack training about the guidelines and their enforcement. As a result, an HR professional must have designated responsibility for the company's overall absence management program and provide training to aid supervisors in their efforts to enforce it. See Leave Management Continues to Vex, but Outsourcing and Integrated Systems Help .

Absence control programs

Traditional sick day policies (which typically include mandatory discipline) may make it difficult for employees to do the right thing. For example, if an organization allows each employee five sick days a year and takes disciplinary action on the sixth absence, an employee who has been incapacitated with the flu for several days may choose to come to work ill rather than risk discipline. In other words, some traditional absence control and sick day policies may inadvertently encourage employee "presenteeism" (e.g., coming to work sick and possibly infecting others), resulting in even more lost productivity and absence. See How HR Can Help Curb Presenteeism .

PTO plans provide employees with a bank of paid leave time to be used for various purposes, in contrast to more-traditional programs that provide set amounts of leave for sickness, vacation and tending to personal matters. PTO banks can be an effective absence control program.

PTO programs may also help manage the problem of presenteeism. With PTO, employees have more discretion as to how to use all their available leave. An ill employee can take a day from the leave bank and stay home without worrying about disciplinary action or exhausting a limited number of sick days. See Employers Are Banking on Paid Time Off .

However, this type of program may not be effective in dealing with specific individuals or workgroups that have excessively high rates of absenteeism. Other approaches—such as alternative work arrangements, job redesign and improved safety measures—may be necessary for them. The careful analysis of detailed data can facilitate the identification of these problems and suggest possible remedies. 

Sick-leave incentive plans—also known as attendance bonuses—take many forms, from a monthly, quarterly or annual cash bonus to gift cards or extra planned time off. But what would make an organization give employees something extra just for coming to work? The answer depends on the nature of the business. Employers focused on delivering services (rather than products) are more likely to be concerned about employee absenteeism and therefore more likely to implement such programs.

For a modest investment, employers can decrease absenteeism, increase productivity and reduce the amount of time managers need to spend juggling schedules to ensure an acceptable service level. Such plans need not involve large cash payouts but can be as simple as recognition (e.g., an e-mail to everyone) or a $25 gas or movie card. The manner in which the reward—no matter how small—is distributed is key to a successful program. It has more impact if a senior manager is the one saying thanks and handing the employee the card. However, not every program fits every department. Customized approaches may be needed to solve specific problems and to avoid unwanted presenteeism.

Wellness initiatives

A clear link exists between managing health care and absenteeism and keeping productivity high. If employees are not at work—or are at work but not feeling their best—productivity suffers. A SHRM strategic benefits survey found that about two-thirds (68%) of HR professionals indicated their organization offered some type of wellness program, resource or service to employees. Among these respondents, 65% reported that wellness initiatives were "somewhat effective" or "very effective" in reducing the costs of health care; 72% indicated they were "somewhat effective" or "very effective" in improving the overall physical health of their employees.

Gallup 1  studied five elements of well-being (purpose, social, financial, community, physical) and found that workers who are thriving in all areas have lower absenteeism, have higher customer ratings, are better problem solvers and are quicker to accept change than employees who are only thriving in one element.

See Designing and Managing Wellness Programs and Employers Take Wellness to a Higher Level .

Improving morale

Employee morale can affect an employer's absenteeism rate: Organizations with good or very good morale experience a lower rate of unscheduled absences than those reporting poor or fair morale. Likewise, the effect of morale on how well absence control programs work is reflected across the board. Overall, organizations with good or very good morale rate their absence control policies and work/life programs as more effective than do their counterparts with poor or fair morale.

Legal Issues

As a general principle, management retains a good deal of flexibility in establishing the days and hours of work expected, rules for employee attendance, and the consequences for excessive absences and paid- or unpaid-leave policies.

However, a complex set of federal and state laws that were enacted for different purposes, in light of different historical conditions—and not designed to mesh well with one another—has made significant inroads on the employer's discretion and has created many opportunities to misstep. It is outside the scope of this article to delve deeply into any or all of these laws. Rather, the intent of this section is to call the HR professional's attention to the major categories of laws that must be taken into account and to point the reader to more in-depth resources for managing employee attendance in light of applicable law. However, this area of employment law is so technical, complex and in flux that HR should never rely solely on generalized information, but rather work hand-in-hand with expert employment law counsel to determine appropriate organizational responses to the various types of absence-related issues. See Viewpoint: Firing an Employee with FMLA Leave and Unexcused Absences .

Types of laws

Among the types of laws that employers must consider in establishing, implementing and enforcing their absence control programs are the following:

Wage and hour laws. Employers must take care that their policies and practices with respect to work absences do not run afoul of the federal Fair Labor Standards Act (FLSA) and comparable state wage and hour laws, which provide for a minimum hourly wage and overtime for covered employees. The greatest risks lie in making improper absence-related deductions from the pay of employees who are considered exempt from these laws. Doing so may result in a finding that they are, in fact, not exempt and therefore eligible for overtime, thus exposing the employer to significant potential liability.

Paid-sick-leave laws . Numerous state and local paid-sick-leave laws place obligations on employers to accommodate absences for sickness and include restrictions on discipline and documentation. Employers need to understand the laws in locations where employees work and keep an eye out for new legislation across the nation. 

Family and medical leave laws. The federal Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of protected leave to care for a spouse, child or parent with a "serious health condition" or on account of the employee's own serious health condition. Family and medical leave laws dramatically affect employers' discretion with respect to their policies and practices regarding covered absences. Nevertheless, employers still have options in how they integrate family and medical leave requirements with employer-specific ways of dealing with absences. A detailed discussion of the FMLA and comparable state leave laws is outside the scope of this article. See Managing Family and Medical Leave .

Military leave laws. Two federal statutes mandate leave related to military service: the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) and the FMLA. Together, USERRA and the FMLA create four types of legally protected leave:

• Military leave for the affected employee.
• Military family leave for the employee who has a military-service-affected family member.
• Medical leave for the affected employee.
• Family medical leave for the employee who has a military-service-affected family member.

In addition, both USERRA and the FMLA create post-leave job protections, although USERRA job protections differ substantially from FMLA job protections in terms of the "escalator principle" and otherwise. Both USERRA and the FMLA have anti-discrimination and anti-retaliation provisions. See Managing Military Leave and Military Family Leave .

Workers' compensation laws. Workers' compensation laws in all 50 states provide victims of industrial accidents and occupational disease with medical treatment, vocational rehabilitation, wage-loss indemnification, and death and burial benefits on a no-fault/exclusive-remedy basis. The employer is responsible for injuries and ailments that arise out of and are in the course of employment, regardless of who actually caused the accident. There is no set limit for the amount of leave available in connection with a job-related injury. But state regulatory agencies and courts recognize that there are reasonable limits. Note, however, that an Ohio court ruled that an employee who is receiving temporary total disability benefits may not be discharged solely for absenteeism when the absence or inability to work is directly related to a compensable injury. Employers should consult with legal counsel prior to taking adverse action against an employee who is absent due to a work-related injury or illness.

Disability discrimination laws. Employers must take into account the federal Americans with Disabilities Act (ADA) and comparable state laws in enforcing their absence control policies. Although regular attendance might be considered an essential job function, an employer risks violating the ADA if it fails to consider modifications to its attendance rules as a possible accommodation. For example, a strict punctuality policy that is uniformly applied does not insulate an employer from liability under the ADA when punctuality is not an essential job function. The same analysis might apply to a no-fault attendance policy.

Other equal employment opportunity laws. All federal and state equal employment opportunity laws prohibit discrimination in terms and conditions of employment, which would include the employer's policies and practices with respect to attendance. See Employer-Provided Leave and the Americans with Disabilities Act .

Unemployment compensation. Excessive unauthorized absences can amount to misconduct that renders a discharged employee ineligible for unemployment compensation. If an employer wants to prove that an employee was discharged for misconduct, it must present competent, substantial evidence showing that the absences were both excessive and unauthorized. Once the employer has proven those points, the burden shifts to the employee to show that the absences were not misconduct.

See Interplay of ADA, FMLA, and Workers' Compensation Training for Supervisors and Is an Employer Permitted to Ask for a Doctor's Note When an Employee Is Out?

Templates and Tools

Attendance Policy

Attendance Awards Policy

Attendance Point System Policy for Nonexempt Employees

[1] Gallup, Inc. (2014, July 07). What Your Workplace Wellness Programs Are Missing. Retrieved from https://news.gallup.com/businessjournal/172106/workplace-wellness-programs-missing.aspx?g_source=link_newsv9&g_campaign=item_222833&g_medium=copy

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The 6-Step Process For Dealing With Employee Absenteeism

At first glance (or late clock in), employee absenteeism and tardiness may not seem like that big of a deal. After all, emergencies happen. Shifts get rearranged, and it can feel good watching your team come together and cover for a sick coworker. But what if every once in a while becomes at least once a month, or even once a week? What if absenteeism stops becoming every now and then, and instead becomes a pattern of behavior?

What is employee absenteeism?

Employee absenteeism is a frequent lack of attendance at work without valid cause. Absenteeism does not include the occasional no-call, no-show or instances that can’t be controlled, like illness or car trouble.

According to the U.S. Bureau of Labor Statistics , 7.8 million workers had an illness-related work absence in January 2022, up 110% from the 3.7 million from the previous year. In 2022, absenteeism cost U.S. companies $225.8 billion, about $1,685 per employee.

How to deal with employee absenteeism in the workplace

Employee absenteeism can be difficult to address once it’s become a habit or accepted behavior by your team. After all, you can’t force employees to show up to work on time. But instead of watching the costs of unexpected absences add up, try this six-step process to reduce employee absenteeism in the workplace:

1. Create an employee attendance policy 

The first step in learning how to handle employee absenteeism? Create an official employee attendance policy . Workplace attendance should be straightforward—show up on time, as scheduled. But in reality, figuring out how to track, document, and fix employee absenteeism can get complicated, and come with a lot of IFTTW—if that, then what—scenarios. What if an employee comes in 45 minutes late, but still shows up? What if they have a sick child or another emergency? What if they don’t show up for work at all? Then what?

It doesn’t matter if your business doesn’t have an official HR department or if you have five or fifty employees. An official attendance policy makes expectations for work behavior and disciplinary action clear to all team members. So take some time now to put together a policy that’s fair to both you and your employees. Consider different attendance issues like scheduled absences, unscheduled absences, and tardiness, then decide any necessary disciplinary actions and next steps for each. It doesn’t need to be complicated. Instead, focus on creating a policy that rules out subjectivity and defines what each type of absence means in clear, plain language.

Download the free employee attendance policy and customize it to your needs!

Once you’re finished, don’t just stick your brand new attendance policy in a binder on the shelf or hide it in the fine print of an employee handbook. Make sure every employee, including new hires, has the chance to see it and is made aware of the changes. Emphasize the importance of attendance as a shared responsibility and that everyone is expected to hold up their end of the bargain. Have your employees sign a waiver confirming that they’ve read the policy and that they consent to work under the new attendance requirements. It’s a good idea for your records to confirm it in writing should any disciplinary issues arise later. And speaking of disciplinary issues…

2. Enforce your attendance policy consistently

A habit doesn’t crop up overnight. A pattern of employee absenteeism is something that develops over time and may already be seen as accepted behavior by the time the issue lands on your desk. In order to learn how to handle employee absenteeism in the workplace, you have to enforce your attendance policy consistently, each and every time.

That doesn’t mean you can’t show employees empathy or can’t have any wiggle room for emergencies. Instead, proactively build those situations into your policy. Have some escalation for unscheduled absences. One may be acceptable, but two may trigger a formal review. But remember: an unscheduled absence is much different than a “no-show.”

Texting that they’ll be late, swapping with a coworker, or calling in sick at least gives you notice that an employee won’t make it into work as scheduled and may give you time to find a replacement or prepare for an understaffed shift. A no-show can leave you wondering where they are, what happened, and leave your entire team hanging. Have a different plan of action for both attendance scenarios and apply it to all employees—including supervisors and management.

3. Keep track of employee absences  

When it comes to dealing with employee attendance, it’s important to keep complete records. How to track employee absenteeism depends on what works best for you and any shift leads or supervisors who will be enforcing the attendance policy. One easy way to track your employees’ time is with a time clock app , which provides useful clock in/clock out notifications right away.

Every time an absence arises, make a note of it, either in your employee timekeeping system or in an employee performance tool. Or, consider putting together a stand-alone spreadsheet just for tracking attendance issues and timesheets . Without a strategy in place for how to document employee absenteeism at work, it may be hard to keep track of employee attendance and flag when one-off unscheduled absences start to become a pattern.

If your team is small enough, limiting access to yourself may be enough to track employee behavior. But if you’re not able to be everywhere at once, make sure other supervisors also have a way of documenting absences and late arrivals—even if it’s just a separate column or a notation on that weeks’ shift schedule.

Why document everything? Most states have legalized at-will employment , meaning employees can be dismissed without employers having to establish “just cause” for termination. However, that doesn’t mean you have a blank check to fire whoever you want —bad firing practices can still put you at risk for a wrongful termination suit, and your first line of defense is a well-documented paper trail.

Absences can also fall under the Family & Medical Leave Act (FMLA) and Americans with Disabilities Act (ADA) compliance, which provide employees with legal protection or accommodation for different types of absence “events.” Some states have enacted mandatory paid sick leave as well. Keep track of different absences, including both scheduled and unscheduled absences, to make sure you’re fulfilling your legal requirements as an employer. And in the case that you do need to let an employee go for absence-related issues, you’ll have a record that supports your decisions.

Related: 10 Best Attendance Apps For Your Business | When I Work

4. Address unscheduled absences and no-shows immediately

Absences happen. But when an employee does call in sick or fails to show up for a shift, directly address the situation. Don’t let too much time (or even another absence) pass in between. Once they return to work, sit down and have a conversation about what happened, why it happened, and what’s expected of them moving forward. Make sure they know if their absence has triggered any type of disciplinary action or a performance plan.

Depending on how long the absence has been, you may even want to hold a formal return-to-work interview. Past research has shown that return-to-work interviews positively impact absence rates and may even work better for small employers. By addressing absences first thing when they return, employees will recognize that their behavior is taken seriously and isn’t sliding by unnoticed.

5. Don’t just treat the symptoms, discover the cause

Like we talked about earlier, there are valid legal reasons for extended employee absences like FMLA or ADA compliance. For other scenarios, now’s the time to decide where you’ll draw the line. How often can an employee call in on Fridays and Mondays before it triggers formal action? Can they just not seem to make it in on time every other Tuesday? Is one no-show too many?

If you’re noticing a pattern in an employees’ attendance, call it out. Ask them directly why their absences tend to fall on certain days, and use your documentation as evidence. Point out specific times and dates and see how they respond.

You may find out there are other things outside of work impacting your employee’s attendance and leading to excessive absences. There may have been a shift in their daycare schedule which makes it hard to find a babysitter on certain days of the week. They may have started night classes and be struggling to make it in on time in the mornings. In the end, it may not be the employee at all, but their schedule.

If your employees have valid reasoning for excessive absences and their performance is strong otherwise, find a way to correct things together. Create a performance improvement plan, update employee availability forms , and adjust schedules where you can as needed. Set goals for them over the next 30 days—including no more absences or tardiness. But if they’re just missing work to kick off their weekend early, it’s time for some hard decisions.

The key here is not to let things go too far. Hopefully, your new employee attendance policy will flag and correct attendance issues at their start. Keeping an open line of communication with your employees can also help them feel comfortable discussing any issues with their work schedules that could lead to absences.

6. Don’t forget to reward good behavior  

Think back to which of your employees missed work, came in late, or called in sick over the last month. Now, think of the ones who didn’t. Was it harder? Easier? Who stood out more?

In the workplace, absence is often felt more strongly than presence, and for good reason. If someone doesn’t show up to do their job, it puts a strain on the entire team. But what about the employees who do show up on time every day and keep your business running smoothly in the background?

Let’s take a look at the statistics:

• Employees who don’t feel recognized at work are twice as likely to say they intend to quit in the next year , while employees who are recognized are more loyal and engaged.
• In today’s growing millennial workforce, up to 76% of millennials say they would leave a job if they didn’t feel appreciated .
• Only one in three workers in the U.S. “strongly agree” that they received recognition or praise for doing good work in the past seven days.

Recognizing employees for good attendance and performance can be one of the lowest cost, yet highest impact strategies for your business. While you may want to focus on weeding out the employees with poor performance, you don’t want to lose the great employees you have in the process. Find a way to call out and reward good attendance on a regular basis. Incentivize employees to make the list next month by offering rewards they won’t want to miss, like an extra day off or a chance to choose their own schedule for a week.

Start your free 14-day trial of When I Work! Click here to start scheduling your employees today.

Track employee absenteeism with When I Work

There’s no overnight solution when it comes to how to fix employee absenteeism. You’re likely still going to field calls about surprise “food poisoning” or the always-convenient Friday flu. But by implementing a fair employee attendance policy , documenting and tracking attendance patterns, having an action plan, and remembering to call out good attendance as often as the bad, unscheduled absences will start to become the exception, not the rule.

When you use When I Work to build your employee schedule, you give your team the ability to request time off and swap and drop shifts to help you stop attendance issues at the root. You can also use When I Work to run attendance reports and track trends, so you can be sure to address any concerns before they become bigger challenges.

You may not be able to solve every attendance scenario, but you’ll be able to set fresh expectations for your team and have a strategy in place for employee absenteeism moving forward.

Sign up for your free 14-day trial of When I Work to help you take control of absenteeism in the workplace.

FAQs: Absenteeism in the workplace

Q: What is absenteeism in the workplace?

A: Absenteeism in the workplace is the frequent lack of attendance by an employee without a valid cause. It does not include rare instances of unavailability due to uncontrollable situations such as illness or car trouble.

Q: What can absenteeism cost businesses?

A: Absenteeism can be costly for businesses. In 2020, for instance, absenteeism reportedly cost U.S. companies approximately $3,600 for each hourly worker.

Q: How can businesses deal with absenteeism in the workplace?

A: Businesses can address absenteeism by implementing a fair employee attendance policy, consistently enforcing it, keeping complete records of absences, addressing unscheduled absences and no-shows immediately, trying to understand the underlying causes of absences, and rewarding good attendance.

Q: What is the role of an employee attendance policy in managing absenteeism?

A: An employee attendance policy plays a crucial role by making expectations for work behavior and disciplinary action clear to all team members. The policy should define different types of absences and the respective consequences in clear language.

Q: How important is it to document absences in the workplace?

A: Documenting absences is vital as it enables businesses to track attendance patterns and identify when occasional unscheduled absences become a pattern. It also serves as a record that supports decisions in the case of absence-related disciplinary issues or terminations.

Q: How can a business reward good behavior to manage absenteeism?

A: This can be achieved by regularly acknowledging employees who consistently show up on time and offering incentives such as an extra day off or the chance to choose their own schedule for a week.

Q: How can understanding the cause of absenteeism help in managing it?

A: Understanding the cause of absenteeism helps businesses to tackle the issue more effectively. If the causes are related to personal or scheduling issues, businesses can work with the employees to adjust schedules or create performance improvement plans. This approach helps address the root cause of the problem, rather than just the symptoms.

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Case study: a return to work after sickness absence due to mental health

Managing sickness absence due to mental health is one of the top challenges for HR and occupational health. Felicity Fleming explains how this case study of a successful return to work shows how national policy developments can help.

Sickness absence management in the UK has changed in the last decade in response to a series of national policy developments, with an emphasis on the benefits of an early return to work. The most recent development is the imminent launch of the Fit for Work service. However, employees can sometimes feel under pressure to return to work before they are fully recovered.

The Government’s current approach to the management of sickness absence within the working-age population is predominantly based on the Black (2008) report and the Government’s subsequent response from the Department for Work and Pensions (DWP) (2008).

However, the costs related to sickness absence remain high, and this looks set to continue due to the added challenges of an aging population staying in work longer (DWP, 2013).

Research has identified that after six weeks of sickness absence, an employee is less likely to make an early return to work ( NICE, 2009 ; Waddell et al, 2008). The Government recommends that a referral is made to OH after an absence has reached four weeks (DWP, 2013). Managers should be trained to effectively implement sickness absence policies, and have a comprehensive understanding of their importance in increasing attendance (Palmer et al 2013; Johnson, 2008).

The rationale for the early involvement of OH is based on evidence indicating that prompt diagnosis and intervention increases the likelihood of an early return to work ( DWP, 2005 ; Black, 2008).

HR management teams, acting on the principle of harnessing and maximising the potential of the workforce to optimise performance (Foot and Hook, 2011), have the task of designing policies that are effective in both managing sickness absence, and enabling employees to return to, and remain in, work ( Acas, 2014 ; CIPD, 2014 ; Palmer et al, 2013). An important consideration for HR in the development of new sickness absence policies is the growing body of research demonstrating that employees who feel valued and motivated have lower rates of sickness absence (Foot and Hook, 2011).

This principle can be seen in the case of an employee who was referred to OH after 20 days of sickness absence, which was reportedly caused by non-work-related stress.

Case study: the management of sickness absence due to mental health

Management of this case began by developing a therapeutic relationship with the employee (Case Management Society UK, 2009), while observing professional regulations (NMC, 2008). Using the biopsychosocial model (Palmer et al, 2013), an initial assessment to determine key facts of the case and the employee’s functional capacity were undertaken. Disclosures by the employee revealed that her stress was due to a complicated combination of factors that included:

• low self-esteem due to a recent verbal warning;
• disturbed sleep and panic attacks due to fear of making a further mistake at work;
• new responsibilities caring for her elderly mother; and
• a recent bereavement (sister).

The OH adviser was concerned that the employee’s manager was unaware that work-related stress was contributing to her condition. Better outcomes are achieved for employees following sickness absence where managers have good relationships with staff and are fully aware of the causes of absence (Wright, 2014). If, for example, sickness absence is caused by a disability, reasonable adjustments could include the episode of absence being discounted (Gorasia, 2013), thereby avoiding the implementation of unnecessary disciplinary procedures (Acas, 2014).

Recognising that one in six workers in the UK are adversely affected by mental health conditions including stress (The Council for Work and Health 2014), the Health and Safety Executive (HSE) extended the duty of care on employers to encompass risks to employees’ health and wellbeing associated with work-related stress. If this recommendation had been implemented in this employee’s case, her sickness absence could have been prevented, and her referral would have included a work-based risk assessment, stating the measures that had already been put in place to eliminate or minimise the work-based stress.

The absence policy in the workplace made no reference to the GP fit note, and no advice was given to managers about using these certificates to support them in absence management. This placed OH practitioners at a disadvantage, as it does not encourage collaborative working (Thornbory, 2014).

Throughout the management of this case, the OH adviser was never informed of the content of the fit note. Although fit notes were introduced in 2010, a survey in 2012 found that out of 40,000 UK GPs, only 3,500 had been trained in the use of fit notes (Chamberlain, 2012) . GPs do not have the relevant knowledge or expertise about an individual’s job activities or the risks involved to be able to make a judgment as to whether an employee was “unfit for work” or “may be fit for some work” (Keyes, 2010). Reasons for sickness absence contained in GP fit notes can be inaccurate, thereby leaving the manager and OH unaware of the impact of work on an employee (Palmer, 2013). The Government has pledged to increase training provisions for GPs regarding fit notes to improve this situation (DWP, 2013).

Recognising that the employee needed to develop relaxation techniques in order to manage her panic attacks, the OH adviser referred her to the organisation’s OH wellbeing adviser, which the individual found beneficial. OH also referred her to the staff-support counselling service, which helped her cope with her bereavement.

A significant barrier to recovery was the employee’s disinclination to take the medication prescribed by her GP. In recognition of the need to respect the decisions and wishes of the client (NMC, 2008), the OH adviser provided gentle advice at this stage, encouraging her to reconsider her decision in view of the effect it was having on her own health and her ability to care for her husband and mother. She subsequently agreed to take the medication prescribed by her GP.

The employee slowly became receptive to OH advice that returning to work could aid her recovery, partly because caring for her mother and husband was making her feel claustrophobic and frustrated. She was encouraged to regain control of her home environment by allocating some responsibility to her adult children. Once these measures were in place, she was then encouraged to consider the benefits of returning to work (Waddell et al, 2008). At this point, she began taking the medication recommended by her GP, which brought about a subsequent improvement in her condition.

The employee disclosed concerns about resuming her employment. She anticipated animosity or diminished respect from some colleagues because her sickness absence was due to a mental health diagnosis. As employees in this situation often experience difficulties returning to work due to feelings of embarrassment (Department of Health, 2012), the OH department planned measures to overcome these barriers, including:

• OH adviser accompanying her to submit her fit notes to her manager in person;
• OH accompanying her to visit her workplace to have coffee with colleagues; and
• encouraging her to meet with colleagues in OH’s absence.

Despite her anxieties about resuming employment, she now wanted to return to work as she was aware that her pay would soon be reduced by 50%. This is a controversial issue for OH. While it is recognised that  occupational pay schemes can result in some workers lacking the incentive to return to work while they remain on full pay (CIPD, 2013), financial pressure can cause other employees to resume work too early, resulting in “presenteeism” and further absence (Baker-McClearn et al, 2010). This can create dilemmas for OH in observing the duty to promote health and foster wellbeing (Smedley et al, 2013).

Consideration of reasonable adaptations for her return included the option of requesting flexible working, based on the Employment Rights Act 1996, and Children and Families Act 2013 (amended June 2014), to enable her to care for her husband and mother, as these stressors had been identified as contributing to her sickness absence. As the health of her husband and mother had now improved, this option was not pursued, but she was made aware that it might be available if deemed appropriate in the future.

Recommendations for reasonable adaptations to support her in returning to work were based on adjustments advised for employees with a mental health diagnosis (Department of Health, 2012; Thornbory, 2014), and included:

• adjusted hours/shifts during her phased return;
• adjusted duties;
• working with a “buddy” during her phased return;
• additional breaks of five-10 minutes as required if feeling stressed or anxious; and
• work-based stress risk assessment to be completed.

After the employee returned to work, one further appointment was arranged, during her phased return, to check that a return-to-work interview had been conducted, and that agreed recommendations were supporting her effectively. Better outcomes are achieved for employees following sickness absence, where managers have good relationships with staff and are aware of the causes of absence. Supporting the manager with clear and timely advice was therefore important (Wright, 2014).

This case study shows the importance of collaborative working between line managers, HR and OH in the management of sickness absence in the workplace. The role of OH included providing support in the form of: material and psychological assistance to the employee; advice, information and guidance to management; and to help colleagues in HR develop robust policies based on latest evidence about the factors influencing employee attendance.

Acas (2014). “Managing absence”. London: Acas.

Acas (2014). Managing Attendance and Employee Turnover .

Baker-McClearn D et al (2010). “Absence management and presenteeism: the pressures on employees to attend work and the impact of attendance on performance”. Human Resource Management Journal. 20 (3) pp.311-328.

Black C (2008). Dame Carol Black’s review of the health of Britain’s working age population: Working for a Healthier Tomorrow . London: TSO.

Chamberlain L (2012). “Fit notes have made no difference to sickness absence”. Personnel Today, 14 May 2012.

CIPD (2013). Absence measurement and management .

CIPD (2014). Factsheets .

Council for Work and Health (2014). “Planning for the future: delivering a vision of good work and health in the UK for the next 5-20 years and the professional resources to deliver it”. London.

DWP (2005). “Health, work and well-being: caring for our future – a strategy for the health and well-being of working age people”. London.

DWP (2013). “Government response to the review of the sickness absence system in Great Britain”. London.

Department of Health (2012). Advice for employers on workplace adjustments for mental health conditions .

Foot M, Hook C (2011). “Introducing human resource management”. 6th ed. Harlow: Pearson Education UK

Gorasia P (2013). Sickness management must be adjusted for disabled employees .

Johnson G (2008). “Management training is the cure for sickness absence”. Occupational Health, 60(8), pp.11-12.

Keyes C (2010). “Are fit notes really the antidote to absence?” Occupational Health, 62(3), p.14.

National Institute for Health and Care Excellence (2009). Managing long term sickness absence and incapacity for work . London, accessed 26 July 2014.

Nursing and Midwifery Council (2008). The Code: Standards of conduct, performance and ethics for nurses and midwives . London: NMC.

Nursing and Midwifery Council (2004). “Standards of proficiency in specialist community public health nursing”. London: NMC.

Nursing and Midwifery Council (2008). “Code of conduct”. London: NMC.

Palmer KT, Brown I, Hobson J (eds) (2013). “Fitness for work: the medical aspects”. 5th ed. Oxford: Oxford University Press.

Smedley J, Dick F, Sadhra S (2013). “Oxford handbook of occupational health”. 2nd ed. Oxford: Oxford University Press.

Thornbory G (2014). “Contemporary occupational health nursing”. Oxford: Routledge.

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Waddell G, Burton AK, Kendall NAS (2008). Vocational rehabilitation: what works, for whom and when? Report for the Vocational Rehabilitation Task Group . Huddersfield: University of Huddersfield Repository.

Wright L (2014). Demedicalising absence management . London: Personnel Today.

Felicity Fleming

Felicity Fleming is an occupational health nurse adviser. She has been awarded the Queen's Institute award for her contribution to community health, incorporating best practice.

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Question: ASSIGNMENT: Case Study 2 Employee Absence Joan, an employee of Great American Market, was warned about her excessive absenteeism several times, both verbally and in writing. The written warning included notice that "further violations will result in disciplinary actions," including suspension or discharge. A short time after the written warning was issued,

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To start addressing the question of whether the suspension was fair, identify and analyze the company’s policy on absenteeism and any previous warnings given to Joan to determine if appropriate procedures were followed.

Questions: 1 . Was the suspension fair? Yes, because in every company they ethics in which everyone should have with and before Joan was been suspended, she was warned verbally and in written form. In other hand most of the company must have a disci …

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Case Study - Managing Absence

This case study looks at the impact of absence on the business and effective ways to manage this. 

Sam started his role as Production Manager. As part of his KPI's he was tasked to improve on the efficiency and effectiveness of production and work within the department budget as his predecessor had let things slip.   

Sam analysed some data and quickly identified that sickness absence was the main factor impacting production. As a result of high absence levels, overtime was being paid at time and a half to cover absence. In addition, deadlines were often at risk or missed due to the high level of frequent short-term absences. This in turn was affecting staff morale as they were constantly under pressure to meet deadlines.  

Sam's investigation of looking at absence for the past year, highlighted the following three situations. 

Example 1 – Absence Monitoring 

Sam realised that there was no clear absence monitoring system in place. Having review all the records, Sam calculated that the average level of absence across the production team was running at about 10 days per annum.  He could further see some patterns where absence was connected to shift patterns and weekends. 

Sam decided to implement a new absence management policy and procedure. This included reviewing the absence reporting procedure and requiring anyone who was not able to attend work to contact Sam personally within specified times.

Sam also introduced return to work interviews where every employee completed a company self-certification form on their return and Sam held a meeting with everyone to discuss their reasons for absence. 

If Sam felt that there were any underlying medical conditions, or the employee needed further support he would ask for their consent for them to attend an Occupational Health Assessment. 

Within the first 6 months, the overall absence fell from an average of 10 days per annum to 5 days per annum. Sam is confident that absence will continue to reduce over time. 

Example 2 - (frequent short-term absence, with patterns)

Paul's absence record was particularly high showed he had been off sick 7 times totalling 20 days. When Sam looked at the reasons for absence, all absences appeared to be for common ailments including headache, sore throat, cold, tummy upset. Paul noticed that out of the 7 absences 5 of them were linked to either weekends, bank holidays or tagged on to booked annual leave, he had returned to work today after being sick on Friday. 

Sam met with Paul (informally) and said that he had noticed that his sickness level was excessive and asked Paul to explain. Sam went through the reasons for Paul’s absence to confirm these were what had been reported, and Paul agreed that they were all associated with common but unrelated ailments. When asked to explain his high level of absence, Paul said that he could not help being ill, and he would not be dragging himself in to work when he was sick.  

Sam asked Paul if he could explain why most of the absences were linked to weekends, bank holidays or booked annual leave. Paul answered that he had no idea why, and asked what Sam was suggesting. Sam said that Paul's job was meaningful, and he was needed at work, when he was off the Company needed to cover his absence usually with overtime which put additional pressure on the budget and his fellow workers on having to do unplanned overtime. Sam added that there was even a risk that deadlines could be missed, which could result in loss of business or damage to the Company's reputation. Paul repeated, 'I can't help being ill'.  

Sam asked if Paul was aware of any medical condition that may be affecting his ability to attend work. Paul answered 'no, it's just bugs and things, everyone gets them'. Sam asked Paul to think about his lifestyle and social life and whether there was anything he could do to make sure that he is well enough to come to work.  Paul said what he did in his own time was nothing to do with the Company.  Sam said that Paul's reliability had everything to do with the Company for reasons he had explained.

Sam said that he would continue to monitor Paul's' sickness along with the whole department's sickness. Sam explained that he hoped that this informal discussion would give Paul an insight on the impact his sickness has on the business and his fellow workers, and the importance of being reliable. Sam said that in the event of Paul failing to improve, he would consider taking formal disciplinary or capability action. After the informal meeting, Sam documented the main points of the discussion and issued Paul with an improvement notice.  

Two weeks after the informal discussion, Paul was off Wednesday and Thursday and Friday. Sam conducted a return-to-work interview when Paul claimed to have hurt his knee playing football on Tuesday evening.  Sam asked Paul what he recalled of the informal conversation regarding the need to improve his absence.   Paul said that he shouldn't go sick at the weekends and needed to improve, but this happened on a Tuesday not the weekend, and he wasn't sick, he hurt his knee. Sam reiterated that either way, Paul was not fit to attend work.  He then read referred to the improvement notice detailing the improvement required. Sam informed Paul that he would be addressing this through the disciplinary process.  

After following the full disciplinary procedure, this resulted in Paul receiving a written warning clearly stating the reason for the warning, the need to improve and consequences of failing to do so.  

The following month, Paul took a week off, reporting to have flu.  Sam conducted the return-to-work interview and asked again if there was any underlying cause that Paul had which would impact his attendance.  Paul said he must have a low immune system. Paul attended a further disciplinary meeting.  During the meeting Paul was asked for consent to contact his GP for a medical report to establish if there was any medical reason for his high level of sickness absence.  Paul refused saying his health and private life was his business and would not let the Company pry.  Paul was asked to reconsider his decisions and was advised that by refusing consent, the Company would make decisions based on information available. Paul was issued with a final written warning stating the reason for the warning and that if he failed to improve, his employment may be terminated. 

6 weeks later Paul went sick for 10 days with 'food poisoning' his absence was verified by a fit note.  At the return-to-work interview Sam reminded Paul he was facing further disciplinary action which could result in the termination of his employment. Sam asked again for his consent for the company to write to his GP or for his consent to attend an Occupational Health assessment. Paul again refused to give his consent saying that it was none of Sam’s or the Company’s business. 

At the disciplinary meeting, Paul mitigated that this time he was genuinely sick and had been to his GP and there was proof because he had a fit note.  Sam explained that all absences were considered to be genuine sickness as reported by employees at the time.  Paul was reminded that he had refused consent to write to his GP or to attend an Occupational Health assessment and was asked a further time to give his consent. Paul's response was again that it was none of Sam's business what was wrong with him, all he needed to know was that he was ill, and his GP had given him a fit note as proof.  

After adjourning and considering all the facts, Sam decided to terminate Paul’s employment, as he had received warnings and had failed to improve. Sam took into consideration that he could not verify any medical information as Paul had continually withheld his consent. He also considered Paul's comments that this time his sickness was genuine which implied that other periods of absence were not genuine.

Sam confirmed the decision in writing and advised Paul of his right of appeal. As the matter was not gross misconduct, but dismissal following a series of warnings, Paul was paid notice. 

Example 3 (Redeployment)

Kirsty had also had frequent short-term absences of 15 spells totalling 20 days.  Out of the 15 spells 14 of them were due to epileptic seizures.  The other spell was 1 day with a sore throat.  Sam was very concerned as Kirsty was the only person trained to operate one of the machines, without her at work production stopped.  Sam met informally with Kirsty to discuss her absences. 

During the informal meeting, Kirsty said she had had epilepsy for a number of years without a seizure, but in the last 6 months she had 14.  Kirsty explained that she was seeing a consultant, and they were trying different medication.  She found it all very limiting as she had been told not to drive, climb heights or operate machinery.  Sam immediately realised that Kirsty was at risk, and he had a duty of care.  He asked her to go to her GP immediately for a fit note stating her medical restrictions and also asked for her consent to contact her GP for a medical report.  Kirsty gave her consent and got a fit note verifying her restrictions.  Sam did not have any alternative work to accommodate her medical restrictions, so Kirsty had to go on sick leave.  Sam managed to cover Kirsty's role by asking her predecessor Jim who retired if he would be able to return for a short while.  

As it was unclear how Kirsty's medical situation would affect her capability of carrying out her role in the long term, the formal capability process was started.  At the first meeting Kirsty confirmed that she was unable to do any of her role as she was not able to operate machinery and apologised that she had not advised the Company as she knew that production would stop if she told them, and she felt responsible.  Sam explained that Kirsty's health and safety was the most important thing.  The medical report confirmed that Kirsty's medical condition was under investigation and would not be determined until tests had been carried out, they anticipated being able to give a prognosis within 1 month.  The process was adjourned pending further information.  

In the meantime, the receptionist who was on maternity leave resigned.  Her position was currently covered by a fixed term contract who had 2 months left. 

Sam reconvened the process on receipt of the medical report, which confirmed that Kirsty would not be permitted to drive or operate machinery for at least 1 year. Kirsty confirmed the report was accurate. They agreed that Kirsty was medically incapable of doing her job and would not be able to do so for at least 1 year. Sam reminded Kirsty that she had been told that her job  could not be kept open indefinitely.  Sam asked Kirsty to consider the receptionist role, although the salary was lower.  Kirsty said that she was a 'bit rusty' with her computer skills, but a course should brush her skills up, and she would be happy to undertake the role.  Sam suggested she returned to work to shadow the 'temporary' receptionist and if towards the end of the 2 months Kirsty felt she would need training the Company would provide it.  Kirsty asked if she would get her job back when she was able to drive.  Sam said the transfer to an alternative position was permanent, but she was welcome to apply for any vacant roles as and when they became available.   A letter was sent to Kirsty confirming the agreed changes and asked for her signature of acceptance of the terms and conditions of the Receptionist role. 

Following the outcome of the process, Sam arranged for Jim to train another member of staff and Kirsty agreed to be a mentor.  

Conclusion 

Within a period of 6 months, Sam had significantly reduced absence. There provided a considerable cost saving on overtime and the production team were no longer under pressure and were able to consistently meet production requirements. 

Sam had redeployed a valuable member of staff and retained their services (as an alternative to dismissal) and had removed an employee whose absence was unacceptable and whose attitude was less than helpful. Sam also found that Paul’s bad attitude had been affecting others and that after his departure morale had lifted.  

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