{"id":59909,"date":"2021-11-16T20:22:46","date_gmt":"2021-11-16T18:22:46","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=59909"},"modified":"2024-04-09T15:49:59","modified_gmt":"2024-04-09T13:49:59","slug":"employee-absenteeism","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/employee-absenteeism\/","title":{"rendered":"How to manage and minimize employee absenteeism"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Employee absenteeism can have a severe impact on the workplace. Not only does it affect <strong>employee engagement and retention<\/strong>, but it also <strong>comes at a huge financial cost<\/strong>. In fact, the <\/span><span style=\"font-weight: 400;\">Center for Disease Control and Prevention (CDC)<\/span><span style=\"font-weight: 400;\"> reports that absenteeism in the U.S. costs employers $225.8 billion annually in productivity losses.\u00a0<\/span><\/p>\n<p><strong>That\u2019s $1.685 per employee.\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">A pretty scary number, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given this high cost, it\u2019s vital for you as an employer to understand <strong>how to manage and minimize employee absenteeism<\/strong>. In this post, we will discuss what it is and what the most common causes of employee absenteeism are. We will also share a few strategies and tips to help you address absenteeism and enhance retention in your company.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"#What\">What is employee absenteeism?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"#Causes\">Causes of absenteeism in the workplace<\/a><\/span><\/li>\n<li><a href=\"#calculate\">How to calculate employee absenteeism<\/a><\/li>\n<li><a href=\"#unexcused\">How much unexcused absenteeism is acceptable?<\/a><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"#Impact\">Impact of termination on absenteeism<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"#How\">How to address absenteeism with an employee<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"#Strategies\">Strategies to reduce employee absenteeism and enhance retention<\/a><\/span><\/li>\n<li><a href=\"https:\/\/factorialhr.com\/time-attendance-signing\" target=\"_blank\" rel=\"noopener\">Keep track of employee absences \u2705<\/a><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\"><a name=\"What\"><\/a>What is employee absenteeism? A definition<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Employee absenteeism refers to <strong>habitual workplace absence that is typically unplanned and without valid cause.<\/strong> This might be due to personal or family emergencies, or short-term absences resulting from stress, burnout, injury, or ongoing illness. It does not include planned absences due to authorized annual or parental leave or occasional instances that can\u2019t be controlled, such as an employee experiencing car trouble. The crucial difference is that with absenteeism, an employee was scheduled to work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whilst occasional absences don&#8217;t normally pose a problem,<strong> frequent absenteeism can have a detrimental impact on your company<\/strong>. Failure to address underlying issues can lead to a loss of profit and productivity and low employee morale. <strong>Excessive absenteeism can also indicate problems within the workforce or organizational culture.\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although every worker misses work from time to time, it\u2019s crucial to know the difference between absenteeism and other types of absences when creating your leave of absence policy.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><a name=\"Causes\"><\/a>Causes of absenteeism in the workplace<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s start by taking a look at some of the most common causes of employee absenteeism as well as a few tips to help you tackle the root causes in your company.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Injury and illness<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Injury, illness, and medical appointments are the most commonly reported reasons for employee absenteeism. In fact, according to the National Institute of Mental Health, <strong>the leading cause of absenteeism in the United States is depression.<\/strong> Chronic conditions including back and neck injuries are also a common cause of absenteeism in the workplace.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Invest in good health and safety practices to help reduce absence rates due to injury and illness. You might also consider implementing a wellness policy to promote a healthy work-life balance and support the mental health of your employees. This can have a drastic positive impact on absence rates.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Stress and burnout\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Closely linked to injury and illness are stress and burnout.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When employees feel overworked or overwhelmed, they become less engaged and less productive<strong>. And if you fail to address employee stress levels, it can lead to sickness and mental health issues.\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have noticed a drop in performance with certain employees, it might suggest underlying issues with stress or burnout. To be sure, you should arrange a meeting with the employee in question to find out if there is any way you can support them. If you fail to address signs of stress and burnout then it could result in long-term absences. Which, in turn, further impact the rest of the team who are left to pick up the slack. This can lead to a vicious cycle of stress and workplace absenteeism.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Bullying and harassment\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Another common reason for employee absenteeism is bullying and workplace harassment. Whether verbal or physical, <strong>harassment can have a dramatic effect on an employee\u2019s well-being and engagement.\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you detect issues with bullying and harassment, then you need to implement strategies to improve employee relations so that each employee feels safe at work. Make sure you have clearly defined policies for preventing and resolving disputes between employees and managers. Provide training where needed and make sure you have procedures in place to manage disputes between employees, leadership issues, and personality clashes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And most importantly, make sure all employees understand that HR is there to support them at all times.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Low workplace morale &amp; engagement<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you have high rates of employee absenteeism in your company, then<strong> it could suggest that there is an underlying issue with employee morale and engagement.<\/strong> This is because if employees don\u2019t feel a strong sense of <a href=\"https:\/\/factorialhr.com\/blog\/organizational-commitment\/\" target=\"_blank\" rel=\"noopener\">organizational commitment<\/a> and motivation it can have a huge impact on performance and productivity. It can lead to weak office relations and an increase in unscheduled absences.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Lack of a flexible work schedule<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><strong>Another common cause of employee absenteeism is a lack of a flexible work schedule.<\/strong> Flexible and remote work has become increasingly popular over the past few years, especially since the start of the Covid-19 pandemic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many companies are now realizing the importance of promoting a healthy work-life balance. Allowing employees to manage their own work schedules and focusing on performance and output rather than fixed schedules results in happier and more productive employees. It also impacts absence rates as employees are able to manage their personal commitments without taking time off work.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you haven\u2019t already done so, you might want to consider implementing a flexible and <a href=\"https:\/\/factorialhr.com\/blog\/remote-employee-time-tracking\/\" target=\"_blank\" rel=\"noopener\">remote work time tracking<\/a> policy in your company.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/download-time-attendance-excel\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone wp-image-86592 size-full\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18162014\/time_attendance_tracker.jpg\" alt=\"time and attendance tracker template\" width=\"526\" height=\"526\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18162014\/time_attendance_tracker.jpg 526w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18162014\/time_attendance_tracker-300x300.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18162014\/time_attendance_tracker-150x150.jpg 150w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18162014\/time_attendance_tracker-160x160.jpg 160w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18162014\/time_attendance_tracker-80x80.jpg 80w\" sizes=\"(max-width: 526px) 100vw, 526px\" \/><\/a><\/p>\n<h2><a name=\"calculate\"><\/a>How to calculate employee absenteeism rate<\/h2>\n<p>Calculating employee absenteeism is a fairly straightforward process. First of all, make sure that you have a clear way of measuring and tracking employee time off. Some employers use <a href=\"https:\/\/factorialhr.com\/blog\/excel-timesheet\/\" target=\"_blank\" rel=\"noopener\">excel employee timesheets<\/a> to do this, while others automate and simplify the process with\u00a0 <a href=\"https:\/\/factorialhr.com\/blog\/time-clocks-for-small-business\/\" target=\"_blank\" rel=\"noopener\">digital time clocks<\/a> or <a href=\"https:\/\/factorialhr.com\/blog\/timesheet-software\/\" target=\"_blank\" rel=\"noopener\">timesheet software<\/a>.<\/p>\n<p>Once you have records of unexcused employee absences on hand, you&#8217;re ready to calculate the average absenteeism rate over a period of time. Then, you divide the number of absences by the time period and multiply that number by 100.<\/p>\n<h3>Absenteeism rate formula<\/h3>\n<p>Here&#8217;s what the formula for employee absenteeism looks like:<\/p>\n<p style=\"text-align: center;\"><strong>Employee absenteerism rate (%) = (# of unexcused absences\/amount of time) x 100<\/strong><\/p>\n<p>To get a more accurate picture of employee absenteeism in your company, it&#8217;s especially important to only include unexcused absences. That way, you can target the underlying causes and find the best possible solutions for employee absenteeism in your company. The amount of time that you plug into the formula is completely up to you. Whether you want to calculate employee absenteeism for a year, a month, or even a week, you can use the same calculation.<\/p>\n<p>To get a better idea of how to calculate employee absenteeism, let&#8217;s take a look at an example.<\/p>\n<p>Let&#8217;s say that company X has an employee who has had 4 unexcused absences within a month (20 working days).<\/p>\n<p>The absenteeism rate calculation for this employee would look something like this:<\/p>\n<p style=\"text-align: center;\"><strong>0.2 = 2 unexcused absences\/22 working days<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>20% = 0.2 x 100<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>Employee absenteeism rate = 20%<\/strong><\/p>\n<h2><a name=\"unexcused\"><\/a>How much unexcused absenteeism is acceptable?<\/h2>\n<p>According to the <a href=\"https:\/\/www.bls.gov\/cps\/cpsaat47.htm\" target=\"_blank\" rel=\"noopener\">Bureau of Labor Statistics<\/a>, the average absence rate for full time employees in the United States was <strong>3.6 days in 2022.<\/strong> This number includes absences due to illness, injury, and other reasons.<\/p>\n<p>Ideally, you&#8217;ll want for your employee absenteeism to be as low as possible. While unplanned ansences are bound to occur, you&#8217;ll want to try to promote physical and mental wellness in the workplace as a preventative solution.<\/p>\n<p>If you have an employee who is regularly absent, its best to look at performance reviews and schedule one-on-one meetings. This will help you to get a better understanding as to why they are missing so many days.<strong> If there&#8217;s no progress or if employees have an absenteeism rate that exceeds 8 days per year, then it might be time to take disciplinary action.<\/strong><\/p>\n<h2><span style=\"font-weight: 400;\"><a name=\"Impact\"><\/a>Impact of termination on absenteeism<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If an employee is repeatedly absent from work, you might be tempted to terminate their employment, especially if you live in a state that has legalized at-will employment, where employees can be dismissed without \u201cjust cause\u201d. However,<strong> bad firing practices can still put you at risk for a wrongful termination suit.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">For one thing, you need to be aware of the impact of firing someone due to sickness or injury. These absences are often covered by the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/fmla\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Family &amp; Medical Leave Act (FMLA)<\/span><\/a><span style=\"font-weight: 400;\"> and the <\/span><a href=\"https:\/\/www.ada.gov\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Americans with Disabilities Act (ADA)<\/span><\/a><span style=\"font-weight: 400;\">. To ensure compliance, you should make sure you keep a written record of all absences. <\/span><a href=\"https:\/\/factorialhr.com\/blog\/dcaa-timekeeping-requirements\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Time-keeping software<\/span><\/a><span style=\"font-weight: 400;\"> can be a great solution for this. A software solution also ensures you are complying with <\/span><a href=\"https:\/\/factorialhr.com\/blog\/managing-overtime-exempt-employees\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">overtime<\/span><\/a><span style=\"font-weight: 400;\"> and <a href=\"https:\/\/factorialhr.com\/blog\/time-and-a-half\/\" target=\"_blank\" rel=\"noopener\">time and a half requirements<\/a> as well as <\/span><a href=\"https:\/\/factorialhr.com\/blog\/wage-and-hour-laws\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">wage and hour laws<\/span><\/a><span style=\"font-weight: 400;\"> in your state.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another major reason for not jumping the gun is the <strong>negative impact termination can have on the rest of your workforce.<\/strong> It can affect the morale of the company as a whole and lead to increased stress if the workload of other employees is affected. All this can result in disengagement and further issues with employee absenteeism.<\/span><br \/>\n<!-- end HubSpot Call-to-Action Code --><\/p>\n<h2><span style=\"font-weight: 400;\"><a name=\"How\"><\/a>How to address absenteeism with an employee<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you are having issues with an employee\u2019s <\/span><a href=\"https:\/\/factorialhr.com\/blog\/about-time-attendance-usa\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">time and attendance<\/span><\/a><span style=\"font-weight: 400;\">, then you need to address it as soon as possible. <strong>The first step is arranging a meeting to discuss any potential issues with employee absenteeism.<\/strong> Make sure you approach this as a fact-finding exercise, not a disciplinary process as this could result in further stress. Convey empathy and avoid judgment until you know the full story.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Try to establish the underlying reason for an employee\u2019s frequent absences. Are they stressed or overworked? Do they have the right support from management? Are they experiencing issues with bullying or workplace harassment? Are they unmotivated?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Offer them support and make sure they are aware of your absenteeism policy. Once you understand why they are taking so much time off work, you can work together to find a solution.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\"><img decoding=\"async\" class=\"alignnone wp-image-130408\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg\" alt=\"factorial hr software demo\" width=\"800\" height=\"274\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-768x263.jpg 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value.jpg 800w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<h2><span style=\"font-weight: 400;\"><a name=\"Strategies\"><\/a>Strategies to reduce employee absenteeism and enhance retention<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In order to reduce employee absenteeism and enhance retention in your company, you need to address the underlying reasons for unplanned absences. More often than not, it is due to an issue with morale and engagement. You also need to make sure you have a solid absenteeism policy in place.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to increase employee morale and engagement is to invest in an effective <\/span><a href=\"https:\/\/factorialhr.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">people management solution<\/span><\/a><span style=\"font-weight: 400;\">. <strong>With the right solution, you can gather regular feedback from employees<\/strong> to establish if there are any areas of concern that might be impacting morale and engagement. You can also implement a reward and recognition program to keep employees focused and motivated. All this will have a positive impact on absence rates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, <strong>you need to have the right tools at hand to make sure you are tracking and keeping a record of all absences.<\/strong> Although simple attendance templates can be used to keep track of time and attendance, a <\/span><span style=\"font-weight: 400;\">time and expense tracking app<\/span><span style=\"font-weight: 400;\"> or an automated system can streamline and speed up the process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With Factorial\u2019s employee <\/span><a href=\"https:\/\/factorialhr.com\/time-attendance-signing\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">time tracking software,<\/span><\/a><span style=\"font-weight: 400;\"> you can <strong>track your employees\u2019 working hours, increase productivity, and reduce absenteeism.<\/strong> Plus, <\/span><span style=\"font-weight: 400;\">geofencing<\/span><span style=\"font-weight: 400;\"> technology helps you keep track of overtime and <\/span><span style=\"font-weight: 400;\">time and a half<\/span> <span style=\"font-weight: 400;\">to ensure compliance with timekeeping requirements and wage and hour laws.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/get-started\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Sign up<\/span><\/a><span style=\"font-weight: 400;\"> now and start improving your HR management with Factorial.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employee absenteeism can have a severe impact on the workplace. Not only does it affect employee engagement and retention, but it also comes at a huge financial cost. In fact, the Center for Disease Control and Prevention (CDC) reports that absenteeism in the U.S. costs employers $225.8 billion annually in productivity losses.\u00a0 That\u2019s $1.685 per<a href=\"https:\/\/factorialhr.com\/blog\/employee-absenteeism\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":60003,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[347],"tags":[],"class_list":["post-59909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-management"],"acf":{"topics":"time-time-tracking"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employee absenteeism: Causes &amp; management solutions- Factorial<\/title>\n<meta name=\"description\" content=\"Employee absenteeism: what are the root causes and how can you tackle them and increase retention? 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