Staffing

How to Manage Absenteeism

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 lack in 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)

Approaches to Control Absenteeism Disciplinary Approach Positive reinforcement Combination Approach 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 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.

8/80-hour rule – a special provision to the wage and hour law that allows health care employees to work extended periods of time outside the 40-hour rule and sets overtime pay when they exceed 80 hours in a 2-week calendar period or work more than 8 hours in a single day

40-hour rule – wage and hour laws that require employers to pay overtime to employees who work more than 40 hours in a 7-day calendar period

Alternative Work Schedules Compressed work cycle – an individual may work multishifts or extended time periods (10-,12-,or 16-hour shifts) within a 40-hour calendar week

Flexible working hours – employees are responsible for a set amount of work but are allowed to establish their own hours around a core period

Job sharing – two individuals share the responsibilities and benefits of a position usually filled by one worker

Exempt and professional status – employees are exempted by salary levels or professional classification from the overtime provision of wage and hour laws

Work-at-home- programs

Off-site testing and satellite laboratories

Freelance employment