What is Absenteeism? Definition, Causes and Impact

A great workforce can be the key to success, and the happiness and well-being of employees play an essential role. However, even with a great workforce, businesses may face employee-related problems that could impact their success. One such problem is absenteeism–employees miss work beyond what’s expected.

Learn more about absenteeism, its root causes and how it affects employers.

What is Absenteeism?

Absenteeism is when an employee is habitually or intentionally absent from work. Sometimes, employees miss work for reasons such as sickness, vacations, or personal time, which is understandable. However, prolonged unexcused absences can be a problem. Employees need to show up to work regularly and be present when scheduled to ensure the smooth operation of the workplace.

Frequent absenteeism can be due to various reasons, such as job dissatisfaction, personal problems, or chronic medical issues. This behaviour can damage an employee’s reputation, affecting their job prospects in the long run. However, some types of absenteeism are protected by law and cannot be used as a reason for termination.

As absenteeism increases, business leaders and HR professionals must identify the root causes and take necessary actions to address the problem.

Types of Absenteeism

Absences can generally be classified into the following three categories:

• Approved Absences: If an employee requests permission to be absent from work, it is considered an approved absence. Vacations, holidays, maternity or paternity leave, long-term medical leave,  and any tasks that need to be taken care of during work hours and cannot be scheduled outside of them are legitimate reasons to ask for this type of leave.
• Occasional Employee Absences: It’s essential to understand that besides approved absences from work, there are times when an employee may require time off that wasn’t approved earlier. Such situations are unforeseen and can’t be anticipated in advance. Examples of unplanned absences may include sick days, childcare issues, grief, court-related legal issues, and car trouble. These are occasional absences where employees use the time off only when necessary and don’t abuse their availability. Companies should plan for occasional absences and allow employees to take time off when needed.
• Chronic Absenteeism: Chronic employee absenteeism refers to a situation where an employee is regularly absent from work without permission from their employer. While occasional absences and planned leaves are usually manageable from an employer’s perspective, chronic absenteeism is not, as it disrupts the business’s day-to-day operations. This could affect corporate profits and the morale of other employees, as having workers who are consistently missing in action causes problems for everyone involved.

Causes of Absenteeism

Employees can miss work for many reasons, most of which are legitimate, while others are generally not. The common causes of absenteeism are as follows:

• Bullying and Harassment: One of the most common causes of absenteeism is bullying and harassment. Employees subjected to such behaviour from coworkers or bosses are likelier to call in sick to avoid the situation.
• Burnout, Stress, and Low Morale: Heavy workloads, stressful meetings and presentations, and feelings of being unappreciated can cause burnout, stress, and low morale, leading to absenteeism. Personal stressors from outside the workplace can also contribute to absenteeism.
• Childcare and Eldercare: Another reason for absenteeism is childcare and eldercare. Employees may miss work to stay home and care for a child or elder relative when standard arrangements have fallen through, such as a sick caregiver, a snow day at school, or if the dependent is ill or hurt.
• Mental Health: Depression, anxiety, or any other mental health disorder can lead to absenteeism. Employees may find it difficult to report to work due to their mental health. The workplace or colleagues may trigger an employee’s anxiety, causing them to avoid work.
• Disengagement: Disengagement can cause absenteeism in employees who lack motivation and commitment to their job and the company.
• Illness: Injuries, illnesses, and medical appointments are often cited as the reasons for missing work. However, sometimes, these excuses are not the actual reasons. It’s unsurprising to see a significant increase in absenteeism rates for full-time and part-time employees each year during the cold and flu season.
• Injuries: Accidents can also lead to absenteeism, including those on the job or outside work, resulting in absences. In addition to acute injuries, chronic injuries such as neck and back problems are a common cause of absenteeism.
• Job Hunting: Employees seeking new employment opportunities may use sick leave to attend interviews or work on their job search. This behaviour can indicate dissatisfaction with the current job. It may result in turnover if the employee secures a new position.
• Partial Shifts: Arriving late, leaving early, or taking extended breaks disrupts the regular workflow. These forms of absenteeism, even if partial, can impact overall productivity, disrupt team dynamics, and affect workplace morale.

How to Measure Absenteeism?

Absenteeism in the workplace is measured using an absenteeism rate, which is the number of absent days divided by available workdays. This rate is a crucial HR indicator, identifying potential issues within the workforce or organisational culture.

When it comes to absenteeism, no specific number or percentage can be deemed excessive. In an ideal situation, a score of zero would be perfect. Still, some absenteeism is guaranteed in an organisation of more than a few people.

It is essential to distinguish between unexcused and justified absences to determine whether an absence is excused or justified. While both kinds of absences can impact productivity, unexcused absences significantly affect a business. It is essential to prevent and control them more effectively to manage them better.

When is Absenteeism Excessive?

Companies have different policies when it comes to absenteeism. Some are more lenient, while others are strict. There is no exact definition of excessive absenteeism, as no guidelines exist. In larger companies, there is a higher probability of absenteeism compared to smaller ones. The organisation is responsible for establishing and communicating the rules regarding excessive absenteeism.

Cost of Absenteeism

Organisations that neglect the issue of absenteeism will see the problem getting worse. The situation is made worse because absent employees are often not held accountable. IT can encourage other employees to do the same.

Absenteeism from work can have far-reaching consequences beyond just the immediate loss of work hours. When employees take time off, their employers still have to pay their salaries, leading to a direct financial loss. It can be especially burdensome if the work is time-sensitive and has strict deadlines. In such cases, employers may need to hire temporary workers or replacements, leading to additional costs. According to a Deloitte study, companies in India alone experience Rs. 14,000 crore financial loss due to absenteeism.

Furthermore, tracking and handling absenteeism can take time, taking managers away from more critical business operations. This can lead to backlogs, delays, and reduced output, harming customer relationships and damaging the business’s reputation.

Finally, absenteeism is often carried by diligent and efficient colleagues, who have to cover for their absent coworkers. This can reduce employee morale and motivation, potentially resulting in higher attrition rates.

Impact of Absenteeism

Absenteeism can have the following impact:

1. Increased Administration Costs: Absenteeism can lead to increased costs for a business, such as hiring temporary workers to cover the workload of the absent employee. This can be expensive, as temporary workers often require higher pay than full-time employees.
2. Lower Workplace Morale: Employee absences can significantly impact team morale and productivity. The remaining team members may have to take on additional workload, leading to stress, burnout, and decreased job satisfaction.
3. Loss of Reputation: High employee absenteeism can hurt a company’s reputation, productivity, client satisfaction, and revenue.

How to Reduce Absenteeism?

Some ways to reduce absenteeism in the workplace are as follows:

• Identify the Cause: Understanding the root cause of absenteeism is crucial. Companies can conduct surveys and analyse absenteeism records to identify patterns and trends. This helps in taking a strategic approach to address the problem and focus on improving work culture, policies, or specific departments. Some companies may also identify particular managerial behaviour that contributes to employee absenteeism.
• Revisit Company Policies: Effective attendance policies are crucial for managing absenteeism in the workplace. They help companies reduce absenteeism and meet employee needs. Strict guidelines are necessary to address scheduled holidays, medical leave, and chronic absenteeism. Human resource managers should introduce the policies to new employees to ensure they understand the company’s expectations. In some cases, company policies may need to be revisited and changed to identify the root cause of chronic absenteeism.
• Provide Support: Support groups and health checkups can aid employees in coping with challenging situations. Providing counsellors or support groups can assist with mental health issues, stress, or personal dilemmas and help reduce absenteeism.
• Reward Good Attendance: Companies can offer incentives like bonuses, paid leaves, and coupons to encourage good attendance and performance. These incentives can create a competitive environment, boost morale, and reduce absenteeism.
• Offer Flexible Work Arrangements: Flexible work arrangements can reduce absence rates by allowing employees to work from home or take personal time without using vacation days. This promotes work-life balance and job satisfaction, leading to a positive work culture.
• Improve Accountability: Employees should be responsible for their role and ensure that team productivity remains consistent even in their absence. Companies may hold employees accountable for rescheduling shifts if absent, encouraging employees to seek help from colleagues to cover their modifications. Employees who share the company’s vision are more likely to stay motivated.
• Control Employee Behaviour: To reduce absenteeism, hold regular meetings to improve policies and provide a forum for employees to discuss their issues. Warn employees privately to address attendance trends and increase their accountability. Replace employees with poor attendance after multiple warnings.

Conclusion

Absenteeism is a significant problem which can lead to adverse outcomes for businesses. To tackle absenteeism, companies need to have proper protocols to identify and address the underlying causes of employee absenteeism. Additionally, companies should provide their employees with sufficient resources and support to help them manage their personal and employee health issues.

Frequently Asked Questions