ABSENTEEISM

ABSENTEEISM

Absenteeism is the term generally used to refer to
unscheduled employee absences from the workplace.
Many causes of absenteeism are legitimate—personal
illness or family issues, for example—but absenteeism
also can often be traced to other factors such as a
poor work environment or workers who are not committed
to their jobs. If such absences become excessive,
they can have a seriously adverse impact on a
business’s operations and, ultimately, its profitability.

COSTS OF ABSENTEEISM

‘‘Unscheduled absences hurt,’’ wrote M. Michael
Markowich in a summary of an article he wrote
for the September 1993 issue of Small Business Reports.
‘‘Most sick leave policies foster a ‘use it or lose
it’mind-set, and employees feel entitled to a certain
number of sick days.’’ Markowich went on to note
that a survey of 5,000 companies conducted by Commerce
Clearing House Inc. (CCH Inc.) found that unscheduled
absences cost small businesses, at that time,
$62,636 a year, on average, in lost productivity, sick
time, and replacement costs.
Indeed, absenteeism can take a financial toll on a
small business (or a multinational company, for that
matter) in several different respects. The most obvious
cost is in the area of sick leave benefits—provided
that the business offers such benefits—but there are
significant hidden costs as well. The SOHO Guidebook
cites the following as notable hidden cost factors
associated with absenteeism:
● Lost productivity of the absent employee
● Overtime for other employees to fill in
● Decreased overall productivity of those employees
● Any temporary help costs incurred
● Possible loss of business or dissatisfied customers
● Problems with employee morale
Indeed, Attacking Absenteeism author Lynn
Tylczak contended that excessive absenteeism, if left
unchecked, can wear on a company in numerous
ways. ‘‘[Absenteeism] forces managers to deal with
problems of morale, discipline, job dissatisfaction, job
stress, team spirit, productivity, turnover, production
quality, additional administration, and overhead. To
summarize: You don’t have an absentee problem. You
have a profit problem.’’