All employers know that employee absenteeism is a big problem. It reduces productivity, morale and the company bottom line.  The ever present challenge is how employers can prevent and reduce absenteeism. CCH, a leading provider of human resources and employment law information (hr.cch.com) conducted an unscheduled absence survey in 2005  and found that the  average per employee cost of absenteeism is $660 with some larger companies losing more than $1 million per year.  What is of great concern to employers is that almost two out of three employees who call in sick are not physically sick. Personal illness accounted for only 35 percent of unscheduled absences and 65% were due to other reasons including family issues (21 percent), personal needs (18 percent) entitlement mentality (14 percent) and stress (12 percent).

Companies with low morale saw higher rates and costs of unscheduled absences. 78% of human resource managers feel that the main cause of absenteeism is the belief that those who skip out of work believe they are entitled to time off.  The other reason cited by human resource managers is  a lack of supervisor involvement as a catalyst to discourage employee absenteeism. When managers understand the causes of absenteeism and use the EAP as a resource for assisting employees, they can play a big role in reducing absenteeism.

When employees are faced with stressful everyday life situations, it has an impact on their ability to be present in their jobs. Stressful situations include family and relationship problems, physical illness, addictions,  financial difficulties including foreclosure, bankruptcy, identity theft, debt and unemployment by a spouse. If employees have a confidential, employer sponsored way (the EAP) to obtain assistance with these difficulties, they are more likely to address their problems earlier and resolve them quicker. Additional worklife and wellness programs as part of the EAP can be very helpful for employees trying to manage the stress of balancing work and family issues.

The EAP can also train managers on how to recognize and identify personal problems before they have begun to effect performance. When managers can coach employees on how to use the EAP, they stay out of the middle of their personal problems, while still offering a way to get help. Once personal problems have begun to effect performance or absenteeism, they can refer the employee to the EAP as a supervisor referral for peformance based issues.  In addition, when employees know they are valued and given a free, confidential resource to address their personal problems, they feel appreciated by and more loyal to their employer.

Employers should also create incentive programs that  can improve both attitude and attendance rates. This works for several reasons. Some employees may lack the internal motivation necessary to keep their spirits up and give them the drive and desire to show up to work every day. These people may need the external motivation that incentives provide.

Additionally, incentives tend to promote certain goals, which can be beneficial for employees with attendance problems. The company can create an incentive program that is specifically linked to attendance. Examples of this type of program include:

1) The ability to cash-in unused sick days at the end of a specific period

2) Allowing employees to leave early one Friday per month of perfect attendance

3) Bonus pay for periods of perfect attendance

4) Gifts such as savings bonds or gift cards for periods of perfect attendance

5) Paid time off programs which allow for personal issues, vacation and sick time all in one bank of hours so employees can use what they need when needed.

Of course employers do need to be clear with employees that if they are legitimately sick, they should stay home so that no one else at work gets sick and so they can take the time they need to get better.  When the workplace culture is one that does not allow people to be ill, then it will create resentment and poor morale.

Do you have any good suggestions for preventing absenteeism? If so, we would love to hear your ideas.

Fully Effective Employees offers assistance with drug testing, management training and consultation, and confidential assistance to employees and their families with personal and work related problems.