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The goal of absence management isn’t zero absences. Sick leave is an important benefit that protects employees, their families, and their coworkers, and a certain level of usage is healthy. Yet abuse of leave can put a hidden drain on your company’s profits, productivity, and even morale.
How can you tell if you have an absenteeism problem? This article walks you through everything you need to know to create an effective absence management program.
Absence management involves tracking and managing employee absences to promote corporate well-being. This includes financial strength as well as employee wellness, workplace safety, employee satisfaction, and employee engagement.
The U.S. Bureau of Labor Statistics (BLS) defines absences as unscheduled absences for illness, injury, family care or other personal obligations, military duty, and parental leave. It doesn’t include vacation, personal days, and other scheduled leave. This is a good working definition for the purposes of an absence management system.
To manage absences, you need to be able to measure employee absence rates. You can calculate absence rates at the individual, team, and company levels. To calculate an employee absence rate, take the total number of absences in a given period and divide it by the total number of working days.
For example, in the first quarter of 2020, there are 62 working days. Consider a four-member team with a total of seven absences during the quarter. The absence rate for that team would be 7 divided by 248 (62 days times 4 employees), or 2.8%. You can also perform the same calculations by hours instead of days.
Employee absences are an important performance measure with a direct impact on your company’s well-being. On average, employers lose 2.8 percent of employee hours to absences, according to the BLS. Based on the Bureau’s most recent wage data, that equates to an average of $1,363 per employee each year.
Your absence rate doesn’t just influence your company’s health -- it reflects it as well. A high absenteeism rate can be a symptom of underlying pathologies. Absence management is therefore an important diagnostic tool as well as a direct contributor to your company’s health.
The following reasons highlight the importance of absence management:
The biggest reason to include absence management in your company’s HR management efforts is the high cost of absenteeism. Based on the figures above, each percentage point in your absence rate represents nearly $500 per employee in wages and salary alone.
Unscheduled absences cost you more than wages. You may have to pay overtime or hire temporary workers to cover for missing employees. Frequent absences can damage morale, quality, and productivity. They also tie up human resources (HR) and front-line managers, resulting in administrative costs.
Absence rates are also worth tracking because they can reveal deeper issues within your business. Gallup reports that highly engaged business units have 41% less absenteeism than less engaged units. A high absenteeism rate can indicate problems with engagement and morale within a team or across your company. This data can inform workforce planning and other strategic initiatives.
Use the following steps to incorporate absence management into your talent management strategies.
The first step to implementing absence management in your business is to adopt tools and processes for tracking it.
Tips for tracking absences:
The following practices will make tracking absences easier:
Once you’ve created a system for capturing and tracking absence rates, workforce analytics can help you identify problem areas and diagnose underlying causes.
Tips for diagnosing absences:
Consider these best practices for evaluating your absence levels:
Now that you have a high-level picture of absenteeism across your business, you can create or adjust your attendance policies to reach your goals.
Tips for creating absence management policies:
To create effective attendance policies, consider the following areas:
Managers are crucial to implementing your absence management plan and driving its results. Gallup reports that “managers account for at least 70% of variance in team engagement and heavily influence employee well-being.”
Tips for engaging managers:
Following are tips for engaging managers in absence management:
As time goes on, you can evaluate trends to see if the measures you’ve taken are working and adjust them as needed. Examine absenteeism as part of regular HR planning sessions at least quarterly.
Tips for measuring results:
Consider the following practices for measuring results:
All of these tasks will be infinitely easier with appropriate HR software. The following programs provide powerful features for absence tracking and management.
Zenefits is a great resource for all aspects of human capital management, and time and attendance are among its greatest strengths. It provides full visibility into employee hours and attendance by employee, role, and department. You can pull custom reports with all the data you need to manage absences at every level in your company.
Workday is another great choice for handling a wide range of HR tasks, from the hiring process to attendance. It allows employees to track time from any device or location and enter details such as reasons for an extended break.
SentricHR automates many HR functions including attendance. While its absence management features are less robust than the options listed above, SentricHR provides the data you need to manage absences. Managers can view team and department absences on a calendar or in a list.
You can’t manage what you don’t measure, and employee absences are costly enough to warrant close attention. A strategic absence management program lets you reap the benefits of a healthier, more engaged workforce.
Our Small Business Expert
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