Good Morning HR Managers!

How to Manage AbsenteeismBy Luke Hangge, Jerry Witron, Kim DeMatteis

What is Absenteeism?

Absenteeism is any failure to report for work as scheduled or to stay at work when scheduled

Reasons for Managing Absenteeism

It is expensive It costs companies an estimated $645 per employee

each year Some studies suggest that companies spend 15% of

their payrolls on absenteeism each year Overtime for replacements Fees for temporary employees Supervisor’s time Over staffing necessary to cover absences

Substandard production is also a high opportunity cost of any company

Do you have an Absenteeism Problem?

Before you begin to manage absenteeism, you first need to find out whether you have an absenteeism issue or not There are several ways to measure absenteeism. The

U.S. Department of Labor suggests the following metric: Number of person-days lost through job absence during period

(Average number of employees) x (Number of workdays) This rate also can be based on number of hours instead of number of

days Typical costs of absenteeism are calculated using the following

variables: lost wages, benefits, overtime for replacements, fees for temporary employees, supervisor’s time, substandard production, and over-staffing necessary to cover absences

X 100

Different Types of Absenteeism

There are two different types of absenteeism Involuntary Voluntary

Involuntary Absenteeism Involuntary Absenteeism is when absences are unavoidable

and understandable Illness Death in the family Other family related or personal reasons Car troubles

Voluntary Absenteeism Voluntary Absenteeism is when absences are

avoidable Not showing up to work for no good reason Showing up late to work for no good reason Any failure to report for work as scheduled

or to stay at work when scheduled, for no good reason

Examples Missing work without warning in advance to

go to a football game Calling in “sick” because you are sick of

your job Making up excuses for consistently being

late to work

Reasons Absenteeism Takes Place

Involuntary absenteeism takes place because:

Employees have families and children Employees get sick People cannot predict real emergencies

How to help you manage involuntary absenteeism Do not hire employees with kids Do not hire employees who are consistently sick

Is this ethical though? How can you tell whether the employee is prone to

illness?

Reasons Absenteeism Takes Place

Voluntary absenteeism takes place because: Employees feel there is a strain on the Psychological

Contract (unwritten expectations employees and employers have about their work relationships) which may cause a lacking organizational commitment (the degree to which employees believe in and accept organizational goals and desire to remain with the organization). Employees are dissatisfied with the tasks that they perform

in their jobs Employees are dissatisfied with their superiors, coworkers,

and work environment, and/or schedules How to help you manage voluntary absenteeism

Do not break the psychological contract!! Help create higher job satisfaction (positive emotional state

resulting from evaluating one’s job experience) Refer to pamphlet for tips

Things to look out for when Managing Absenteeism

Legal Ramifications FMLA

Requires that individuals be given up to 12 weeks of family leave without pay and also requires that those taking leave may return to work. Employees are covered even if they “maxed out” their annual allocation of time off

ADA Contains restrictions on

obtaining and retaining medically related information on applicants and employees

Approaches to Control Absenteeism

Disciplinary Approach Positive reinforcement Combination Approach “No fault” policy Paid-time-off (PTO) programs

Approaches to Control Absenteeism

Disciplinary Approach: Employees get oral and written warnings, suspensions, and even up to dismissal for absenteeism violations

Approaches to Control Absenteeism

Positive reinforcement: Employees receive rewards for good attendance Lottery system “Play poker” system The opportunity to change working

conditions

Approaches to Control Absenteeism

Combination Approach: Employees are rewarded for positive behavior and are punished for bad behavior

Approaches to Control Absenteeism

“No fault” policy: Employees must manage their own attendance unless they abuse that freedom. Once abused, then disciplinary action may be taken. Employers don’t judge whether the absences were excused or unexcused.

Approaches to Control Absenteeism

Paid-time-off (PTO) programs: Employees can use vacation, holiday, and sick leave, which is accrued in an account, at their discretion. Once an employee runs out of PTO then they are not paid for any additional days off.

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