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Absenteeism in the Workplace: 7 Ways to Resolve this Bottom Line Killer

Absenteeism in the Workplace: 7 Ways to Resolve this Bottom Line Killer

By Caron_Beesley, Contributor
Published: April 12, 2016 Updated: April 15, 2016

Employees are the lifeblood of a small business but they are also human and need time off to deal with sickness, manage family needs, and fulfill civic commitments like jury duty.

Personal time off is essential, but what happens when it becomes a problem? Persistent absenteeism (habitual and intentional time off) is a chronic problem for U.S. employees costing $3,600 per hourly employee per year, and $2,650 per salaried employee per year (source).

Not only does absenteeism effect your bottom line, it increases everyone’s workload leading to poor quality output and a sour atmosphere all round!

Absences occur for many reasons – burnout, stress, bullying, low morale, job hunting, etc. There’s also a generational element when it comes to absenteeism. Research suggests that millennials are more likely to skip a day when they feel anxious, whereas as baby boomers value showing up for work, even when they are under the weather.

Whatever form absenteeism takes, it’s bad for business. But here are seven ways to resolve persistent absenteeism:

1. Try to Identify the Root Cause

There’s often a good reason behind that call you just got from an absent employee excusing themselves from work and your gut instinct can guide you on this one. However, if you are noticing an excessive pattern and finding it hard to take your employee’s word for it, then it’s time to take action. If an employee is just not bothering to show up or giving you advance notice, then an intervention is essential. Start keeping a paper trail and records of absences.

2. Give Employees an Opportunity to Explain Themselves

The first thing you can do is give employees an opportunity to explain themselves. When they return to work, have a one-on-one discussion about their absence and express your concern. This is not a disciplinary discussion, but more of a fact-finding mission. Your goal is to understand what’s happening and try to solve the issue. For example, if stress is a factor, then you may need to discuss strategies that can help, such as shifting workloads, reducing responsibilities, etc.

Very often, employees are pleased that they have been given an opportunity to air their problems or grievances. But be warned, you may learn things that you don’t want to hear, particularly if it turns out that your management style is the problem. Try to remain objective during the discussion and use it as a platform to change things.

3. Put a Performance Improvement Plan in Place

If the tactic above doesn’t work, then you need to put a performance review plan in place that sets specific goals for improvement, attendance being one of them. Put the plan in writing and clearly explain the timeframe of the plan and the consequences of not fulfilling its requirements.

4. Develop and Communicate a Clear Leave Policy

A written policy won’t stop absenteeism, but it will help you deal with it more effectively. It will also demonstrate to all employees that you don’t tolerate absenteeism. Use the document to clearly explain paid and unpaid leave policies and the consequences of unexcused absences. If you have a company newsletter or intranet, use these to promote your policy.

Note that the law doesn’t require you to provide common leave benefits, but it does require employers to provide leave under the Family and Medical Leave Act (FMLA). Be sure you know what the law is. Read more about the FMLA leave entitlement qualifying medical events in SBA’s Employee Benefits Guide (scroll down to “Leave Benefits”).

5. Review your Management Style

It’s hard to acknowledge, but one of the more common reasons for employee dissatisfaction is management style. Could your style be encouraging employees to harbor grudges or lose morale? Step back and assess what you can do differently. Is your open door policy really that open? Do employees really feel valued? Plan on setting side more management time for your team, discuss their professional goals, and share your vision for the continued growth of your business and their role in it.  For more inspiration read: Top Tips to Lead and Empower Employees.

6. Consider Introducing Incentive Plans

While they’re no guarantee you can control absenteeism, incentive plans and employee programs such as flex-time, wellness programs (by the way, the Affordable Care Act rewards employers who operate wellness programs), and project completion perks, are proven to increase morale and productivity. A survey by the business-to-business division of Staples, found that employees that participate in such programs have made them:

  • Feel more valued (85%)
  • Happier and more motivated (70%)
  • More loyal to their employer (66%)
  • More productive and results-driven (~60%)

7. Terminate Repeat Offenders

If you’ve exhausted all these intervention measures and aren’t seeing improvement, then termination may be your only option. Follow your HR policy to the letter on this one and refer to the law as it pertains to terminating employees, final pay checks, and more.

Absenteeism happens, but don’t ignore it. Find out why it’s happening, be empathetic to the needs of your team, and establish clear policies so that everyone understands what’s acceptable. Finally, be prepared to take the necessary action when required. It’s your bottom line that’s at stake after all.

How do you deal with employee absenteeism? Leave a comment below.

About the Author:

Caron_Beesley
Caron Beesley

Contributor

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley