RESEARCH PAPER (2) (1)

36
Psychological Contract: Investigating Absenteeism 1 The Psychological Contract: Investigating Absenteeism Danielle Cloutier Winona State University MGMT317: Human Resources Dr. Jana Craft

Transcript of RESEARCH PAPER (2) (1)

Page 1: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 1

The Psychological Contract: Investigating Absenteeism

Danielle Cloutier

Winona State University

MGMT317: Human Resources

Dr. Jana Craft

Page 2: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 2

Abstract:

Absenteeism takes a major toll on businesses causing them to lose employees for a period

of time, which leads to increased costs and decreased productivity. Absenteeism is a silent killer

that causes organizations to incur many indirect costs such as lower performance, training new

employees, and overtime pay for those that pick up the slack. An unspoken psychological

contract plays a large role in shaping the culture of the company, which is a major determinant in

absenteeism. In addition, it is the link that connects an employee and employer together by

establishing what is expected of the employee and what the employer will give in return, all be it

unspoken. There are five main reasons for absenteeism: illness, mental health, family balance,

entitlement, and job dissatisfaction. This paper will examine how three different organizations

dealt with absenteeism differently and the reasons why. Based on the research and interviews

conducted, I found that entitlement is not seen in many organizations, yet in the research, it is

documented that it causes about 15% of absences. In addition, depending on whether a company

is in the public or private sector, gives us insight into the level of absenteeism and the risk

associated with being absent. All the other areas were consistent between the literature and

interviews.

Key Terms: Absenteeism, Psychological Contract, Motivation, job dissatisfaction, entitlement, Employee Assistance Program, management, culture

Page 3: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 3

The Psychological Contract: Investigating Absenteeism

Absenteeism takes a major toll on businesses causing them to lose employees for a period

of time, which leads to increased costs and decreased productivity. “In terms of straightforward

expenses, recent surveys estimated that time-off costs from annual payroll have, risen to about

$40 billion” (Burton, Lee & Holtom, 2002, p. 181). “Even more important, direct financial losses

that are associated with absenteeism fail to capture considerable indirect costs that are attributed

to excessive absenteeism such as wages for replacement workers, overtime pay, and lower

performance.” (Mayfield & Mayfield, 2009, p.455-6). Absenteeism is one of the silent killers

that many companies fail to notice when it is happening, and that is because of the mindset

employees have on the issue. It is common for employees to think, I will not go to work today,

they won’t miss me, or it won’t harm the business, I will just say that I am sick, but like

dominoes if every person thinks this, one domino falls and the rest go with it, ultimately hurting

the business as a whole. When an employee is absent, their productivity is reduced to zero

(Rogers & Herting, 1993). For this reason, it is necessary to put a plan in place tailored to your

specific company that will eliminate the costs of absenteeism; the level of risk and effect the

absent individual has on the company will play a large role in the degree of punishment.

I have personally witnessed this in my fraternity. It is my job, as the Vice President of

Chapter Operations, to notice those that are absent often and to confront them so we become the

best fraternity possible. It is hard to get people motivated to come if they do not have it within

them, but that is exactly what businesses need to do to decrease absenteeism. The importance of

noting this is that the culture of the company plays a major role in absenteeism

Page 4: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 4

Literature Review

Psychological Contract:

The psychological contract plays a large role in shaping the environment and culture in

the workplace. The psychological contract is defined as, “the overall set of expectations held by

the employee with regard to what he or she will contribute to the organization and that are held

by the organization with regard to what it will provide to the individual in return” (DeNisi &

Griffin, 2006, p.15). The psychological contract sets the tone within the organization. If both

sides (manager and employee) keep up their side of the deal, they gain mutual trust, leading to

more productivity. On the other hand, if there is a breach in the contract it leads to decreased

trust and cooperation because they feel that their presence does not matter, ultimately leading to

betrayal. “Psychological contract breach was related to lower organizational trust, which, in turn

was associated with perceptions of less cooperative employment relations and higher levels of

absenteeism” (Deery, Iverson & Walsh, 2006, p. 166). Abu-Doleh and Hammou also include that

a breach will result in decreased job dissatisfaction, decreased commitment to the company,

decreased performance, and one’s personal beliefs of the company (2015, 39-41). Job

dissatisfaction will be talked about in more detail later, and is one of the biggest reasons why

employees are absent. One’s personal beliefs of the company could also change, which proves or

makes them feel that there is unfairness in the workplace, which turns them against the culture

and company. Therefore, there is an important connection between the psychological contract

and absenteeism, and without the psychological contract, many employees would not understand

the consequences of absenteeism.

Issues in the psychological contract, including leadership style, values, relationships,

work conditions, benefits, and perception of importance. When the leaders of an organization are

Page 5: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 5

acting a certain way then those below them tend to pick up the habits; if the manager is doing it

then others will deem it acceptable. The values of the corporation affect the attitude that an

employee has towards the business. Although it is not common for many people to work for an

organization that does not align with their values, it is a possibility, and this can lead to

disengagement, and lack of desire to grow. If the employees do not see the values as guiding

points, and/or stimulate their ambition to give a hundred and ten percent the company will fail to

live up to their values, leaving a gap in the corporations goals. In addition, it is important not to

leave any employees behind, leaving them to be lost or not feeling needed. The environment of

the working conditions plays a large role as well. It is essential that environment is suited to the

task to ensure efficiency and teamwork. Depending on whether or not the ambiance is

welcoming, or if the employees feel they are just another number determines the effort they put

in. If they feel a part of the whole, they will want to contribute to the success, where as if it is not

welcoming they will not feel as if their input matters. If a strong and positive culture is not

present, it will lead to high levels of absenteeism and other related issues. The overall goal of the

psychological contract is to ensure that all employees are working towards the same goals within

the organization while also being effective. When all of these are met it creates for a satisfied and

healthy work environments where work can be completed successfully. Ultimately, it is the link

between the employee and organization.

Absenteeism

Absenteeism is a major problem in organizations that leads to high costs, and there are

many sources of absenteeism. Absenteeism is “any failure to report for or remain at work as

scheduled, regardless of the reason” (Mayfield & Mayfield, 2009, p. 457). Today it is more

common to see absenteeism in the workplace because of the drastic change from a

Page 6: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 6

predominantly male workplace. Since women are not choosing to be stay at home moms, they

have to leave their job to take care of their kids, attend events for them, and also take care of

their parents; all leading to higher levels of absenteeism. Also, there is less loyalty in the

workplace. The average employee changes jobs eight to ten times in their life. Due to this,

employees must create their own security, meaning they are more concerned about their self than

the company as a whole; this means less attachment to the company (Kramer & Neidtz, 1997).

“Absence is influenced by social consensus both inside and outside the workplace”

(Nicholson & Johns, 1985, p.397); this is demonstrated through a multiplicity of reasons for

being absent. “Fifty-two percent of total employee absences are discretionary in nature. These

absences are the result of factors such as stress, personal needs, and entitlement mentality,”

(Mayfield & Mayfield, 2009, p.457). In addition to personal needs, stress, and entitlement

mentality, absenteeism relates to health issues, family issues, and dissatisfaction on the job as

well. “It is estimated that only 35 percent of unscheduled absences are due to illness, while 65

percent of absences are for other reasons, such as family issues (20 percent), personal needs (20

percent), entitlement mentality (15 percent), and stress (10 percent)” (Veazie, 2011, p.7).

Health and Family Issues

Health issues include anything from being sick to dental reasons, etc. Burton, Lee, and

Holtom (2002) found that, “absence due to illness may not strictly represent involuntary

absenteeism but rather may be voluntary in nature.” (p.183). This is the problem of cheating the

system, and for that reason it is hard to monitor or regulate it, since the psychological contract is

formulated on the basis of trust. Deery, Iverson, and Walsh (2006) reflected this by saying,

“Trust reflects a confidence between the parties that they will not be harmed or put at risk by the

actions of the other party and that neither party to the exchange will exploit the other’s

Page 7: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 7

vulnerability.” (p. 167). Family issues deal with children or spouse being sick, having to take

care of sick or dying parents or relatives, funerals, etc. . It has become the norm to call into work

and use the excuse that I am sick, but what is failed to be realized is the amount of money that

the company is losing by one employee being gone. These are two of the more straightforward

reasons for people being absent, and the reasons most typically heard of; this is because they are

more socially acceptable.

Personal Needs

Absenteeism also comes from personal needs or problems, which includes things such as,

stress, drug or alcohol abuse, depression and mental illness, etc. According to DeNisi and Griffin

(2006), stress, “is a person’s adaptive response to a stimulus that places excessive psychological

or physical demands on him or her” (p.273). Stress can be caused by many factors including:

task demands, physical demands, role demands, and interpersonal demands; these are stressors

related to work. Stress outside of work can be due to life changes or traumas. In an

organizational setting, it can cause a decline in performance, absenteeism, turnover, and

decreased motivation. It can lead to other personal problems such as drug abuse, smoking,

alcohol, etc. (DeNisi & Griffin, 2006, p.275). Drug and alcohol abuse can cause impairment on

the job and increased absences due to lack of mobility and thinking skills. There are wellness

programs in place that can help individuals deal with these issues. The main one is the Employee

Assistance Program for drugs and alcohol, stress management, and other things. This is one of

the more difficult absences to decrease, but it goes back to combatting absenteeism with positive

feedback and the psychological contract. Also, it is important that other employees and managers

Page 8: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 8

observe the behavior of employees, in order to notice if there is anything that seems out of the

blue, so that they can provide the help before the number of absences increase

Dissatisfaction

Dissatisfaction is also a leading cause of absenteeism, because if a worker does not feel

they are getting any benefit out of their job they will be absent more often since work is not a

priority, and it does not matter to them if they lose their job. Reasons for job dissatisfaction

include the nature of the work, pay and benefits, and relationships with supervisors and co-

workers. The effects of job dissatisfaction can range from a variety of different things, decrease

in organizational commitment, decrease in organizational citizenship behaviors, and less of a

positive feeling connected to the business which could lead to negative word of mouth (DeNisi

& Griffin, 2006, p. 134-35). “A strong relationship exists between job dissatisfaction and

absenteeism, partly because employees who are dissatisfied may not always be able to leave their

jobs…In addition, it is possible to withdraw even more gradually by simply being late.” (DeNisi

& Griffin, 2006, p. 134). The organization has a large say in changing the outcomes associated

with dissatisfaction because it is an internal cause. This is the biggest area that the psychological

contract needs to be concerned with; whether it be the leadership style, benefits or aligning

values so that not only absenteeism, but turnover as well is decreased.

Entitlement

Last, entitlement is when someone feels that they are above others or hold enough power

(essentially, they believe they are better than the rest of their employees) that it is not necessary

for them to show up to work. Entitlement is thought to come from those employees that hold top

management positions, but this is not always true, it can come from those below that feel they

Page 9: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 9

are not being valued to the level they deserve. As stated in the introduction, absenteeism is a

domino effect, but for more than just the fact that others will follow. “Increased absenteeism by

some worker could lead to an increased work-load among coworkers. As a consequence, workers

could be required to spend more of their personal time at work doing extra unscheduled hours”

(Camden & Ludwig, 2013, p. 168). If the co-workers have to pick up the slack, it could result in

them taking days off to rejuvenate and decreased morale. Decreased morale leads to larger issues

such as burnout. No matter what the reason is for an employee to be absent it is important to note

that these absences have a significant impact on the company’s overall well-being.

Combatting Absenteeism

There are multiple reasons why people are absent as stated above. Ideally, a company

will have benefits (pay, opportunities, and sick leave), employee programs, and a proactive

leadership style and strategies that will help them combat rising absenteeism. Even though

absenteeism can be a silent killer, one important take away from monitoring absences is, it

predicts individuals that will leave soon. Nicholson, Brown, and Chadwick-Jones (1977) stated,

“(a) a tendency for “leavers” to have higher absences rates than matched groups of “stayers”, (b)

a tendency for individual absences rates to rise immediately prior to the act of quitting, (c) a

tendency for group turnover and absence rates to be positively correlated over time.” (p.321); the

key to combatting something is knowing when it is going to happen. It is important to notice how

medical, government, and small businesses deal with absenteeism differently, and how their

psychological contract and documentation of absenteeism leads to the required behavior. “To

remain competitive in a global economy employers must implement effective programs to stem

escalating disability claims and increased costly absenteeism” (Kramer & Neiditz, 1997, p.58).

As stated previously, the leadership style that one exerts will have a large effect on how the

Page 10: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 10

employees view the company; therefore, it is essential to be there for ones employees, while also

being a leader. In addition, they should have employee programs in place to show that they care,

and help prevent future costs related to alcohol abuse, stress, etc. Essentially, businesses need to

have a procedure in place to deal with the issues at hand.

According to Marisa Warford, one way to decrease unscheduled absences is by using a

paid time off system versus a traditional leave program (2014, p.28). In the paid time off system,

it allows for a set number of days off during the year, instead of in the traditional leave program

it is broken out into sick days and vacation days. Warford states that some of the advantages

associated with PTO programs are decreased unscheduled absences, decreased productivity costs

and losses, empowers employees to make their own decisions, and the flexibility related to it

(2014, p.28). As stated above, with more women working there has been an increased liking to

having work balance and flexibility. The flexibility is a great attribute for people with sick

parents, kids, etc. By allowing people to decide when to take their absences also entails a sense

of trust on the employees. This trust and power will hopefully cut absences and create for a

stronger workforce.

Corrective action plans need to be in place in order to deal with rising absenteeism. These

guidelines need to be laid out in the Employee Handbook, in addition to the unspoken rules

found in the psychological contract. By having a plan in place to deal with rising absenteeism

will decrease the long term affects that come with it. Also, it creates a standard that will

hopefully prevent something from happening in the first place. These plans should entail

information about when/who to contact if one knows they are going to be absent, how many

hours they will receive to be absent, and the consequences related to being absent too frequently.

Page 11: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 11

Practical Application

Absenteeism will be evaluated in three different types of businesses: medical,

government, and small business. The significance of this comparison is to understand how

varying organizations deal with absenteeism and to what degree of seriousness they take. The

three interviewees are Sheila Finley from the Mayo Clinic in Rochester, Minnesota, Brian

Osborn from the Federal Prison in Rochester, Minnesota, and Jake Schmidt from Clement’s

Chevrolet in Rochester, Minnesota.

The first person interviewed was Sheila Finely. She works at the Mayo Clinic as the

Senior Human Resources Service Partner. She has been a part of the Mayo Clinic since 2001 but

has been working in HR since 1988. She has held many positions within HR that have led her to

hold this top position. With her knowledge and certification, it makes her a very reliable source,

since she has seen it from many different sides of the business, along with having a vast amount

of knowledge. Second, I interviewed Brian Osborn who is the Human Resource facilitator at the

Federal Prison in Rochester, Minnesota. He started out as a correctional officer for a few years,

and then found himself in the human resource department, where he has been for fifteen years.

Throughout the fifteen years, he worked at five different places, but this is what makes him well-

rounded in the field. Last, I interviewed Jake Schmidt from Clement’s Chevrolet. Jake’s current

position is to handle IT, human resources, and accounting issues. He has been a part of the

company for ten years, while serving for three years in his current position. Before his current

position, and the reason for him being hired, was to assist their sales management team to help

them reach internal and external sales goals. He is an important asset to my research because he

has seen the company from both sides (management and a typical employee). Also, just last year,

Clement’s underwent a change within their company that drastically changed the policies and

Page 12: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 12

culture, which is useful in understanding how change and new programs can lead to positive or

negative impacts.

Medical Field

First, I will look at each issue stated above in the medical field by using the Mayo

Clinic’s point of view for dealing with absenteeism. It is important to note the culture present at

the Mayo Clinic and whether they focus on written or unwritten rules. The Mayo Clinic uses

their written rules as the policies that guide their employees to be successful; it is not abnormal

that they focus more on written guidelines because they are specifically concerned with their

patients, and there is a very small gap for error; attendance is crucial for delivering quality

patient care. If they do not show up on time then there is a progressive corrective action process

to address the problems. Finley refers to the unwritten rules to be that of peer pressure and

morale of other co-workers in the department. There are no rewards set in place to reward those

that are present the majority of the time besides the use of positive feedback. It is important to

notice that every person sees a “reward” as something different, and it is up to the leader or

manager to notice this and make accommodations accordingly. In order to address the issue, they

use a typical system where the managers have a verbal conversation with the employee to

address the circumstances. They question why they have been absent, and if there is anything

that they can do in order to help better suit them. If there is a job disconnect that is resulting in

the high levels of absenteeism, then this is when a teacher-student moment takes place. In this

moment, they reinforce why their position in the company is so vital to the overall well-being of

the company but also to the clients/patients they are representing. Managing each employee as an

individual with different needs is important, and supervisors may encourage the employee to

contact the “Employee Assistance Program”; master degreed employee assistance professionals

Page 13: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 13

staff this program. Services provided include relationships, substance abuse, co-worker relations,

workplace issues, depression and stress. If the manager cannot obtain any information then it is

out of their control, and they must just note to them the importance of their attendance.

Especially in a medical field, it is essential to note that the absences affect those around

them. When I asked Finley how it affected the other employees, Finley stated that it greatly

decreased the morale of other employees because they were tired of picking up the slack for

those individuals. The issue of entitlement that was discussed in the literature review is not

typically seen at the Mayo Clinic. Most of the managers and top leaders are committed to the

success of the organization. She did state though that some employees can feel a sense of

entitlement, but overall only about five percent of their employees have behavioral and

attendance problems. In a medical field, the issue of absenteeism is not highly seen, and I believe

this is due to the high risks related to the type of work they do and because it affects multiple

individuals. In addition, the Mayo Clinic adheres to strict rules and guidelines that drive the

employees to live up to those standards. The Mayo Clinic also incorporates a manager tool,

which includes a systemic application of applied behavior analysis to maximize human

performance in the workplace, identified by both the presence of discretionary effort and a

positive environment.

Government

The second industry is government. I used the Federal Prison located in Rochester,

Minnesota. The most typical reason for employees to be absent is due to sickness or so they

state. To decrease the abuse of being “sick”, they use a system that allows them to require a sick

not every time they are absent for an illness. This appears to be excessive, but in such an

influential agency, it important that no one abuses his or her power, therefore if one decides to be

Page 14: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 14

absent too often this action is necessary. Another corrective action taken for sick leave is that if

one is gone for more than three days, a sick note is automatically required. Last, they can put

them on “Absent Without Leave,” which keeps the employee from being paid and could lead to

possible suspension. On the other hand, although there are no rewards set in place for those that

come to work often, if an individual has built up enough sick days they can use them toward

their retirement. They focus on leading based off known standards; therefore, the leaders lead by

example. It is also important to take a personal interest into their life to decrease the level of job

dissatisfaction. Since job dissatisfaction leads to less productivity, it is essential that this does not

happen in a prison where safety is key. Compared to the medical field there are more eyes on the

employees in the Federal Prison as to why they are absent. It is not frowned upon to monitor

their employees because they want to solve every problem in a timely manner. There are tests in

place that can determine if the employee is still competent to work there. One is the fitness for

duty test, which is designed to continually check their potential. If they do not meet the

requirements, they are to leave their service; the government holds their employees to high

standards. Those at the top have earned that position rightfully and it is less likely to see those

individuals absent. They want to increase the morale, and when many are absent there is a

decrease in morale, and for that reason, they try to decrease activities that could lead to it.

Small Business

Third, the examination of small businesses, which will help to see the difference between

public and private organizations. Currently, there are no major absentee issues at Clement’s, but

they have the guidelines related to absenteeism laid out in the employee handbook. They realize

that every person is different but at the end of the day, every employee is expected to be at work.

The two main issues seen in their workplace when absenteeism is present, according to Schmidt,

Page 15: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 15

is sick leave and job dissatisfaction or disengagement. It may appear to be more difficult to

examine the level of education and skills present here because their employees hold white-collar,

blue-collar, and no collar positions; yet, every employee’s treatment is still the same, which is

essential to the success of their company. If they all were treated differently, it would cause a lot

of controversy within the organization. The first step taken to address the issue is communication

through their direct supervisor, and then if the issue were not resolved it would go to Schmidt. At

this point, it becomes a more serious problem, and if there is no correction than all the corrective

actions that lead up to termination are complete and the employee can be fired. To compensate

employees for showing up, they become the first ones in line for promotions and compensation

increases. Within the last year, they have adapted a new monitoring system to tell when people

are absent. This new system has also changed the culture in Clement’s. Prior to the change, there

were a lot more absences, and the culture in the business was less inviting. They have switched

to using a third party payroll website that documents every aspect of employment from hiring to

retirement that sends out weekly, monthly, quarterly, and annual reports. This decreases the

chance of cheating the system. This system allows them to better manage their financial

statements and personnel expenses in order to closely monitor the cost of absenteeism. Since the

change, they have also switched to having the department manager approving the time sheets

versus having an employee that sits in the corner collect them; this decreases the number of

nuances that individuals can get away with, since the department manager will already have a

tight eye on them.

One plus to having so many different types of workers in the business is that many of the

individuals are cross-trained meaning that they are able to complete more than just their specific

job. Although this is helpful, it is also only a temporary solution. Jake stated, “Absenteeism is

Page 16: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 16

very expensive. Personnel expenses can get out of hand rather quickly if absenteeism is not dealt

with quickly and efficiently. It also puts unwarranted stress on the staff trying to fill the void left

by a person missing work.” As the other two companies have stated, those at the top do not feel a

sense of entitlement, but instead they feel that they are greatly invested in the business therefore

they must lead by example; Jake states that this is starting to work, for the employees are

becoming more engaged, but it is not quite fully there yet.

Employee Perspective

Now that we have heard from the Human Resource Managers in each corporation, it is

important to note whether those working in the lower positions have the same outlook on the

company. I was lucky enough to be able to get this from two of the three organizations: medical

and small business. Sue Cloutier from the Mayo Clinic (Operations Manager) stated that she felt

the policy is fair and well written to combat the difficulties seen at the Mayo Clinic. She also

commented that it gives a clear direction for the managers to follow, and since the policy is very

descriptive and definite there are no grey areas, meaning those in lower positons can easily

understand it and will not be blindsided. Once one reaches ten strikes or unregulated absences

they will no longer have a job. She stated that she is lucky enough to enjoy her job and feels

many of the other individuals there feel the same way. She has called in sick only five times in

the past twenty-five years that she has been there. This remarkable statistic shows that the

employees that work at the Mayo Clinic are satisfied, which leads to decreased absenteeism.

Scott Cloutier, who works at Clement’s Chevrolet, as the General Sales Manager works

directly with the employees that sell the cars. Since their company’s change, it has allowed the

employees thirty days of paid time off; versus the three weeks they had, but before those days

did not include sick days. After the owners implemented this new plan, it held the employees

Page 17: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 17

more accountable for their attendance and less likely just to take a sick day for no reason. He

does see that the consequences related to absenteeism are not always followed through with.

They can still take days off that they are not paid for, and since the sales people are paid on

commission it does not greatly affect the company. Essentially for them being absent is the

equivalent of having no customers come in that day which is plausible. He also sees a lot of job

dissatisfaction within the business and believes this is due to the large communication gap

between those at the top and those at the bottom. In addition, the pay plans continually change

which leads to inconsistency. This is irritating to employees. What leaders believe to be true is

not always a direct reflection of what the employees are feeling; this disconnect can cause many

problems.

Discussion

Based off the research done through scholarly articles and interviews from three different

people, in three different businesses, there are many discrepancies between the readings and

actual businesses. Along with this idea is also the discussion of how each corporation deals with

absenteeism differently. I will also relate it back to my fraternity and provide the organizations

with one modification that I feel will be helpful in continuing to combat absenteeism. These

ideas will be the focus of my discussion.

The first idea that needs to be analyzed is the difference between how medical,

government, and small businesses differ on how they deal with absenteeism and the level of

absenteeism present in their organization. The biggest difference I found was since medical and

government agencies are public sectors they have more regulations that guide them and affect

more people directly. On the other hand, Clement’s is a small business that is tailored to fit to

their own needs. In my research, I found that it is more typical for there to be higher levels of

Page 18: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 18

absenteeism within the public sectors; this is the first point that I found different from the

research I completed.

Second, I found that entitlement seemed to be a large issue related to absenteeism (15%

according to Veazie, 2011), yet throughout the interviews not one company saw that as a large

threat or reason for employees to be absent. This is huge, especially since I expected to find that

more corporations would have this problem. This brings us to the question of whether it is the

management in play or more closely linked to their mindset that they have come so far. I believe

that since they have earned their position they wish to bring their knowledge to others (invested

in the company), and in return this affects those below them, leading to good leadership.

Another key difference that leads to why the three businesses have different plans in

place is due to the level of risk associated with each company. Like the variation between public

and private sector, again in the government and medical field there are higher risks and stakes

associated with their work. It is evident through their strict and strongly enforceable policies that

they mean business and expect 100% out of their employees. This is not to say that small

businesses do not have similar expectations, but especially with Clement’s as an example, the

majority of their employees are paid based on commission and the individual themselves take the

risk for their own personal gain by being absent versus the company as a whole. It is very likely

that even if they were not there the sale would still be made, which is ultimately the end goal,

and it does not matter which salesperson reaches it. In comparison, at the Federal Prison and the

Mayo Clinic, if an individual were to be gone the paperwork would pile up, and the tasks they

were assigned that day would not be completed. While at Clement’s, another salesperson can

complete the sale for an absent individual. This is not quite as easy in the Federal Prison and

Mayo Clinic. In the Federal Prison and Mayo Clinic, each person is hired for a different reason,

Page 19: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 19

and although other employees would probably have the skills necessary to complete the tasks it

would increase workload and stress.

In response to having a desire to write this paper because I was seeing

absenteeism issues in my fraternity, I have learned that there are many ways to decrease

absenteeism, yet I have also seen many of the reasons why people are absent as well. I think the

biggest reasons people are not showing up based off of the issues that I discussed is because of a

disconnect and dissatisfaction with what we are doing. It is hard as college students to get our

peers engaged. Most of the time people do not show up is because they feel that they have better

things to do, or what we are doing will not affect them later on, therefore, it is not important

now. The biggest thing we can do to decrease this disconnect is to continue have the leaders of

the fraternity show up to all events, constantly remind them of the dates, and express to them the

importance of showing up not only for their own personal growth but ours as a fraternity. We

also greatly focused on the why this semester to push people to see the advantage gained from

the experience. Another form of implementation that took place this semester was the focus on

committees. Instead of having the people with positions do all the works we focused more on

including everyone in the decisions. In addition, through this it got people involved in areas that

they felt would be most rewarding and that they were interested in. It may have not increased

overall attendance, but it pushed people to attempt to get more involved, and share their ideas to

make our fraternity better off. Another change that was made was doing projects that affected the

community; this increased the social responsibility felt by many which made them want to

attend. After all this changes are made, there is not much else we can do because we have taken

all the necessary steps as leaders to try to engage them. The rest is up to them.

Page 20: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 20

Last, I wish to give the three organizations a tip that I think would be helpful for them to

decrease absenteeism even further. I think it is important to note that none of the companies had

a reward system in place to award those that are present often, and I think this is something they

should look into to give their employees a bit more incentive. These rewards do not have to be

drastic just something that increases motivation even further in their employees.

In conclusion, absenteeism is a major problem, but many companies are dealing with the

pressing issues well. They have strong systems in place to measure the costs related to

absenteeism, and corrective plans in place to deal with those employees that are experiencing

high levels of absenteeism. It is essential that management monitors the changes that are

occurring so they can continue to accommodate their culture and provide benefit plans to meet

the needs and wants of future employees to eliminate unwanted absences all together.

Page 21: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 21

References:

Abu-Doleh, J., & Hammou, M. D. (2015). The impact of psychological contract breach on organizational outcomes: The moderating role of personal beliefs. Journal of

Competitiveness Studies, 23(1), 34-54.

Burton, J. P., Lee, T. W., & Holtom, B. C. (2002). The influence of motivation to attend, ability to attend, and organizational commitment on different types of absence

behaviors. Journal of Managerial Issues, 14(2), 181.

Camden, M. C., & Ludwig, T. D. (2013). Absenteeism in health care: Using interlocking behavioral contingency feedback to increase attendance with certified nursing assistants. Journal of Organizational Behavior Management, 33(3), 165-184. doi:10.1080/01608061.2013.814521

Deery, S. J., Iverson, R. D., & Walsh, J. T. (2006). Toward a better understanding of psychological contract breach: A study of customer service employees. Journal of Applied Psychology, 91(1), 166-175. doi:10.1037/0021-9010.91.1.166

DeNisi, A., & Griffin, R. (2011). HR (2nd ed.). Mason, Ohio: South-Western ; Cengage Learning.

Hassan, S., Wright, B. E., & Yukl, G. (2014). Does ethical leadership matter in government? effects on organizational commitment, absenteeism, and willingness to report ethical problems. Public Administration Review, 74(3), 333-343. doi:10.1111/puar.12216

Mayfield, J., & Mayfield, M. (2009). The role of leader motivating language in employee absenteeism. Journal of Business Communication, 46(4), 455-479.

Nicholson, N., Brown, C. A., & Chadwick-Jones, J. (1977). Absence from work and personal characteristics. Journal of Applied Psychology, 62(3), 319-327.

Nicholson, N., & Johns, G. (1985). The absence culture and psychological contract-who's in control of absence? Academy of Management Review, 10(3), 397-407. doi:10.5465/AMR.1985.4278945

Rauch, M. (2005). Strong relationship shown between morale, absenteeism. Incentive, 179(5), 8-8.

Rogers, R. E., & Herting, S. R. (1993). Patterns of absenteeism among government employees. Public Personnel Management, 22(2), 215.

Page 22: RESEARCH PAPER (2) (1)

Psychological Contract: Investigating Absenteeism 22

Veazie, J. I. (2011). Improving productivity while managing unscheduled absenteeism in the health care business office. Health Care Collector: The Monthly Newsletter for Health Care Collectors, 25(4), 6-10.

WARFORD, M. (2014). Does paid time off PAY OFF? (cover story). Workforce, 93(8), 26-48.