The Startup’s Guide to Reducing Employee Absenteeism

The Startup’s Guide to Reducing Employee Absenteeism

Absences Cost Companies Money, Productivity and Added Stress.


Employee absences can become very costly for employers especially if they are not tracked. It is important for any company to utilize effective absence management systems to ensure employees are not abusing the time off policies of the company. Abusing the system can cost the company nearly 50-60% of an employee’s annual salary.


Absences Cost Companies Money

This can run into the tens of thousands of dollars in company losses if there are hundreds of employees abusing the system. Some companies may suggest their employees see a company physician or provide a doctor’s note to verify the absence. Many companies do not have strategies in place to handle excessive absences until the fifth absence is accumulated and the employees pay is stopped. This is not effective absence management.

Is Management Contributing To Poor Attendance?

One of the main reasons employees provide for taking unscheduled time off is conflict with their supervisor. Many supervisors and management team members do not know how to effectively communicate with their staff or they do not know how to interact with staff. It’s important to have a management team that has the proper training and support to communicate properly and professionally with employees.

By teaching supervisors to listen and work with their employees, helps to reduce the stress that is often the cause of the discord. When management has practices in place to help employees deal with personal problems or even personnel problems is an effective way to handle absenteeism.


Ways to Manage Absence

Ways to Manage Absence

Some of the best ways to ensure employees attendance is to provide incentives for good attendance, paying bonuses for days not used and providing ample sick days to all employees are some good ways to ensure employee productivity. Ensuring the company has good absence management policies and strategies to deal with short term absences, habitual absences and long term illnesses is also effective.

Policies should be clear and easy to understand and placed within the employee handbook for quick reference. Making these policies available through a staff portal so that they can be monitored may also act as a deterrent to habitual absenteeism. Keep your weekly time sheet updated on a daily basis. Some cloud based systems served a dual purpose such as a time and attendance system. Many of these applications also records and monitors excused absences, training as well as unauthorized absences and holidays.


Proactive Approach to Wellness

Taking a Proactive Approach to Employee Wellness

Clinical studies have shown that a company with an effective wellness program in place has fewer employee absences than a company that does not have a wellness program in place. Knowing what motivates your employees is another good indicator of their satisfaction in the workplace. Sometimes offering flex time or the ability to work from home will help eliminate absenteeism.

Companies that offer health screenings such as vision, blood pressure and diabetes checks have lower absentee rates than companies who don’t provide these services. Stress is the number one reason for a day off. Providing gym equipment for your employees boosts overall mental health and productivity by reducing stress. Employee surveys can indicate the areas of stress within the company providing Human resources the ability to address these stressors and put new practices in place.


Employee Wellness

Sometimes a little praise and positive feedback go a long way. Employees are not just interested in a paycheck they want to know they are doing a good job. Just like everyone else your employees need to know they are appreciated, employee appreciation days are a great way to show your employees they matter and boost their productivity. Something as simple as calling your employees by their name is enough to show them you recognize them and that the matter.

A safe, open work environment encourages employees to discuss with supervisors any ongoing problems they may be facing. Many employees that feel animosity or hostility in the work place will convince themselves they can’t make it out of bed, even if they are mildly under the weather. Anyone who dreads going to work may feel as if even the smallest mundane tasks are monumental, thus creating a need to escape.

Creating an atmosphere where employees feel free to discuss any issues with you or their supervisors is conducive to productivity. When personal problems arise employees may ask their supervisor for permission to arrive 20 minutes late, instead of losing a whole day of work.



Article provided by NECHES FCU, with locations in Port Neches, Nederland, Beaumont, Lumberton and Bridge City.
Neches FCU is one of the top Texas credit unions, and has an awesome team of professionals ready to deliver service all members. When their doors open at any of the several locations, their goal of “Ultimate Member Satisfaction” becomes the driving force for every staff member. They are well-known for a personal, dynamic and fast-paced work atmosphere, providing a memorable service experience, and where clients are known by name.