Absenteeism: the Costs of Unscheduled Absences Hurt Sample Essay

Absenteeism is the term by and large used to mention to unscheduled employee absences from the workplace. Many causes of absenteeism are legitimate—personal unwellness or household issues. for example—but absenteeism besides can frequently be traced to other factors such as a hapless work environment or workers who are non committed to their occupations. If such absences become inordinate. they can hold a earnestly inauspicious impact on a business’s operations and. finally. its profitableness. COSTS OF ABSENTEEISM

“Unscheduled absences hurt. ” wrote M. Michael Markowich in a sum-up of an article he wrote for the September 1993 issue of Small Business Reports. “Most ill leave policies foster a ‘use it or lose it’ mentality. and employees feel entitled to a certain figure of ill yearss. ” Markowich went on to observe that a study of 5. 000 companies conducted by Commerce Clearing House Inc. ( CCH Inc. ) found that unscheduled absences cost little concerns. at that clip. $ 62. 636 a twelvemonth. on norm. in lost productiveness. ill clip. and replacing costs. Indeed. absenteeism can take a fiscal toll on a little concern ( or a transnational company. for that affair ) in several different respects. The most obvious cost is in the country of ill leave benefits—provided that the concern offers such benefits—but there are important concealed costs every bit good. The SOHO Guidebook cites the undermentioned as noteworthy concealed cost factors associated with absenteeism: * Lost productiveness of the absent employee

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* Overtime for other employees to make full in
* Decreased overall productiveness of those employees
* Any impermanent aid costs incurred
* Possible loss of concern or disgruntled clients
* Problems with employee morale
Indeed. Attacking Absenteeism writer Lynn Tylczak contended that inordinate absenteeism. if left unbridled. can have on on a company in legion ways. “ [ Absenteeism ] forces directors to cover with jobs of morale. subject. occupation dissatisfaction. occupation emphasis. squad spirit. productiveness. turnover. production quality. extra disposal. and overhead. To sum up: You don’t have an absentee job. You have a net income job. ” DEVELOPING AN Absence Policy

Many little concern proprietors do non set up absenteeism policies for their companies. Some proprietors have merely a few employees. and do non experience that it is worth the problem. Others operate concerns in which “sick pay” is non provided to employees. Workers in such houses therefore have a important inducement to demo up for work ; if they do non. their payroll check suffers. And others merely experience that absenteeism is non a important job. so they see no demand to establish new policies or do any alterations to the few bing regulations that might already be in topographic point. But many little concern advisers advocate enterprisers and concern proprietors to see set uping formal written policies that mesh with province and federal Torahs. Written policies can give employers added legal protection from employees who have been fired or disciplined for inordinate absenteeism. provided that those policies explicitly province the allowable figure of absences. the effects of inordinate absenteeism. and other relevant facets of the policy.

Furthermore. noted The SOHO Guidebook. “a formal. elaborate policy that addresses absences. tardiness. failure to name in. and go forthing early can function to forestall misconceptions about acceptable behaviour. inconsistent subject. ailments of favouritism. morale jobs. and charges of illegal favoritism. General statements that excessive absenteeism will be a cause for subject may be deficient and may take to jobs. ” Other stairss that have been touted as effectual in cut downing absenteeism concern doing alterations in company civilization and policy. CCH Incorporated. for case. has noted that workplace flexibleness can dramatically cut incidents of unscheduled absenteeism. Many little concerns that have introduced flextime. compressed work hebdomads. occupation sharing. and telecommuting options to their work force have seen absenteeism autumn significantly. for these policies provide employees with much greater leeway to strike a balance between office and place that works for them ( and the employer ) . ABSENTEEISM POLICIES

Most employees are painstaking workers with good attending records ( or even if they are forced to lose important sums of work. the grounds are legitimate ) . But as Markowich noted. “every company has a little figure of abusers—about 3 per centum of the workforce—who exploit the system by taking more than their allotted ill clip or more yearss than they really need. And when they begin naming in ill on excessively many Monday or Friday forenoons. who picks up the slack and handles the excess work? More of import. who responds to client petitions? ” To turn to absenteeism. so. many little concerns that employ workers have established one of two absenteeism policies. The first of these is a traditional absenteeism policy that distinguishes between excused and unexcused absences. Under such policies. employees are provided with a set figure of ill yearss ( besides sometimes called “personal” yearss in acknowledgment that employees on occasion need to take clip off to go to to personal/family affairs ) and a set figure of holiday yearss.

Workers who are absent from work after wash uping their ill yearss are required to utilize holiday yearss under this system. Absences that take topographic point after both ill and holiday yearss have been exhausted are capable to disciplinary action. The 2nd policy option. normally known as a “no-fault” system. permits each employee a specified figure of absences ( either yearss or “occurrences. ” in which multiple yearss of uninterrupted absence are counted as a individual happening ) yearly and does non see the ground for the employee’s absence. As with traditional absence policies. one time the employee’s yearss have been used up. he or she is capable to disciplinary action. “USE IT OR LOSE IT” Some companies do non let employees to transport ill yearss over from twelvemonth to twelvemonth.

The benefits and disadvantages of this policy continue to be debated in concerns across the state. Some analysts contend that most employees do non necessitate big Numberss of ill yearss. and that systems that allow carryovers are more likely to be abused by hapless employees than suitably utilized by good employees. who. if struck down by a long-run unwellness. frequently have disablement options. But Markowich warns that “today. most employees feel entitled to a specified figure of ill yearss. And if they don’t take those yearss. they feel that they are losing a promised benefit. Your company may be unwittingly reenforcing this ‘use it or lose it’ attitude by set uping policies under which employees ‘lose’ their ill clip if it is non used by the terminal of the twelvemonth. ” ESTABLISHING A SYSTEM FOR TRACKING ABSENCES

Absenteeism policies are useless if the concern does non besides implement and keep an effectual system for tracking employee attending. Some companies are able to track absenteeism through bing paysheet systems. but for those who do non hold this option. they need to do certain that they put together a system that can: 1 ) maintain an accurate count of single employee absences ; 2 ) tabulate company broad absenteeism sums ; 3 ) calculate the fiscal impact that these absences have on the concern ; 4 ) detect periods when absences are peculiarly high ; and 5 ) differentiate between assorted types of absences.