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The key causes & significant costs of employee absenteeism

The key causes & significant costs of employee absenteeism

Employee absenteeism significantly impacts everything from company morale and productivity to profit. Absenteeism is more than just an empty desk or a missing employee — the effects of employee absenteeism cause a severe economic burden for organizations worldwide. Some research shows that unscheduled absences and chronic absenteeism can cost employers an estimated $3,600 per hourly worker and up to $2,660 for salaried employees each year. These costs include wages paid to absent employees, the financial impact of replacing workers, and the administrative costs of managing absences.

Organizations must take the time and energy to proactively understand the causes of absenteeism at work in order to develop and implement effective absence management strategies that mitigate the impact. Explore the causes of employee absenteeism here and learn simple steps you can take to create a more engaged, present, and productive workforce. 

Common causes of employee absenteeism

There are many causes of absenteeism at work. Issues range from personal physical health struggles to dysfunctional workplace dynamics to emotional or mental health issues. Understanding the causes is the first step in learning how to address employee absenteeism

Here are a few of the most common reasons for absenteeism at work — and some strategic ways to improve your environment and foster a healthier culture where people want to be at work. 

Health-related issues

The most common reason people miss work is health-related issues or concerns. According to the U.S. Bureau of Labor Statistics (BLS), 7.8 million workers missed work in January 2022 (notably, this employee attendance number is up more than 100% from January 2021, when there were 3.7 million reported absences). 

Whether it’s acute illness, chronic conditions, or mental health struggles, many employees find themselves physically or emotionally unable to be at work.

Solution: Offer comprehensive health benefits, flexible sick leave policies, and wellness programs to improve employee mental and physical well-being.

Work-related stress or burnout

Job demands, tight deadlines, and long hours are the norm today, but they also lead to workplace stress and burnout, making it challenging for some employees to show up every day. Recent research finds that the majority — 77% — of professionals experience burnout in their job. 

Solution: To address this in your organization, you might need to adjust workload expectations, offer time management training, or instill supportive managerial practices. Implement regular mental health days off, ensure manageable workload expectations, and use realistic goal setting to ensure work-life balance for employees.

Bullying and harassment

Workplace bullying and harassment can quickly cause hostile work environments that push even the most dedicated employees to the point where they don’t have the energy or strength to come to work. 

Solution: Strict and enforced anti-harassment policies help create a safer work environment for everyone and set the standard that you have zero tolerance for bullying. Beyond just creating policy, it’s important to support expectations with regular training, an open-door policy, and a confidential reporting system.

Poor working conditions

Inadequate workplace conditions — including unsafe work environments, lack of tools, and uncomfortable workspace setups — can increase absenteeism. Regularly audit and solicit employee feedback to identify poor working conditions before they impact your employee absence rate.

Solution: Continuously improve workplace safety and involve employees in discussions about what they need and want at work. 

Negative workplace culture

A toxic workplace culture often stems from micromanagement, employees not feeling supported, or unethical behavior — all of which can drive employees away. One important step in creating a positive culture and improving employee satisfaction is ensuring leadership models respect and collaboration.

Solution: Promoting positivity in the workplace is easier when you prioritize transparency and fairness. Leadership training and employee feedback can be critical in changing workplace culture and reducing workplace absenteeism. 

Family responsibilities

Work-life balance and being able to meet family obligations — like childcare or caring for another family member — are directly linked to worker absences. Employees with substantial outside obligations will appreciate flexible scheduling or remote work options that allow them to meet their demands outside of work.

Solution: Offer flexible work policies that make telecommuting, flex hours, and family leave easy for employees so they can manage both personal and professional responsibilities successfully. Over time, this should help to reduce your company’s unplanned absence rate. 

Lack of job satisfaction

Job satisfaction is crucial in longevity and reducing turnover. Employees who feel undervalued or unfulfilled in their roles are more likely to miss work. Improving employee satisfaction can be as simple as recognizing employee achievements, offering career development opportunities, and ensuring roles are aligned with employee skills and interests.

Solution: Make sure your organization focuses on personal growth and career advancement opportunities. Recognize and reward employee achievements to show how much you value team members.

Employee disengagement

It’s simple — employees who aren’t engaged will miss work more frequently. Meaningful work, clear communication, and autonomy in decision-making can reduce absenteeism and improve engagement.

Solution: Increase engagement by offering a straightforward way for employees to give feedback and ensuring employees have a voice in major decisions.

Job hunting

If people are actively seeking new employment, they’re more willing to miss time at their current job. You can entice employees to stay with your organization by offering competitive compensation, stellar health benefits packages, and maintaining positive work environments.

Solution: Reduce turnover and enhance retention by improving employee benefits packages regularly to ensure you’re providing competitive benefits.

Impact of employee absenteeism

The consequences of employee absenteeism go far beyond just having an employee gone from work for a day. It can affect the entire company, negatively impacting:

  • Productivity 
  • Individual workloads 
  • Team dynamics 
  • Morale 
  • Organizational costs 

Decreased productivity

Absenteeism causes a decline in productivity in more ways than one. The obvious factor is reduced output when employees aren’t at their desks. There are also the ripple effects of employee absenteeism — for example, when critical staff aren’t there to do their jobs, it can delay project timelines and reduce the quality of work.

Increased workload for other employees

Often, when an integral member of the team is absent, other team members who are present must jump in to pick up the slack. Just because a colleague isn’t there doesn’t mean the job doesn’t have to get done. The result can be overworked employees and lost productivity, which increases the risk of further absenteeism in the long run.

Disruption of team dynamics

Frequent absences impact both the cohesion and efficiency of workflows. This can lead to frustration and conflict throughout the team, with further consequences in terms of quality and productivity. 

Decreased morale

When workers aren’t present, they create an extra burden on team members who are at work, significantly impacting morale and organizational culture. 

Financial costs to the organization

Absenteeism creates a significant financial burden on businesses. Lost productivity, ramped-up overtime costs as people try to fill in, and the potential need for short-term replacements can drastically (and quickly) add up.

Impact on organizational reputation

If your organization has a chronic absenteeism problem, your internal and external reputations are at stake. For one thing, high absenteeism rates indicate poor management, which can reduce your ability to attract and retain top talent.

Reduce absenteeism with employee support

Taking steps to reduce absenteeism at work can benefit your organization in many ways, from increased productivity to having a resilient and thriving workplace. Understanding the root causes of absenteeism at work and addressing them effectively can be a game changer.

Absenteeism is often related to stress and burnout, which you can address by integrating mental health services into your benefits packages. Talkspace makes it easy with simple, convenient, and affordable therapy for employees. Talkspace offers confidential access to therapy, so employees can deal with work-related stress, health issues, or other personal challenges contributing to absenteeism. Employees who have access to regular mental health support are better equipped to deal with stress, can resolve personal issues more efficiently, and know how to maintain focus and productivity at work.

Incorporating services like Talkspace into your mental health benefits can transform how you handle absenteeism across your organization. Ensuring employees get the support they need, when, where, and how they need it, lets them be the best versions of themselves. Get the most out of your workforce by providing a supportive, engaged, and productive environment. 

Reach out to Talkspace today and request a demo to start transforming your approach to employee wellness and reducing absenteeism.

Sources:

  1. CIRCADIAN® Content Editor. “CIRCADIAN® 24/7 Workforce Solutions.” CIRCADIAN® 24/7 Workforce Solutions. https://circadian.com/white-paper-absenteeism. Accessed July 1, 2024. 
  2. “TED: The Economics Daily Image: 7.8 million workers had an illness-related work absence in January 2022.” 2022. U.S. Bureau of Labor Statistics. February 9, 2022. Accessed July 1, 2024. https://www.bls.gov/opub/ted/2022/7-8-million-workers-had-an-illness-related-work-absence-in-january-2022.htm.
  3. “Workplace Burnout Survey.” n.d. Deloitte United States. https://www2.deloitte.com/us/en/pages/about-deloitte/articles/burnout-survey.html. Accessed July 1, 2024.

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