Employee absenteeism is a growing problem that several businesses are facing currently. Staff absenteeism can cost the New Zealand economy up to $1.3 billion annually. While there are government entitlements to leave, it is up to employers to implement strategies to properly manage absences in the workplace to prevent it from impacting their operations.
In this best practice guide for employers, we explore causes of employee absenteeism, ways to reduce absences, and tips to manage high absenteeism.
Causes of employee absenteeism
Most employees are entitled to at least 10 paid days of sick leave each year. Although it is normal for your employees to fall sick every once in a while, frequent absences can directly impact your productivity and business.
If an employee develops it is best to act quickly to get an understanding of the reason and future absences can be prevented.
There are other factors that can contribute to staff absenteeism:
- Burnout.
- High workload.
- Toxic work culture.
- Bullying.
- Disengagement.
- Stress.
- Personal issues.
- Lack of management support.
It is not uncommon for employees to use sick leave for non-sickness related reasons. While not all employees may be faking sickness or are lying, it is essential that you identify common causes of staff absenteeism so that you know how motivated your employees are.
Reducing employee absenteeism
Employers can implement strategies to reduce absenteeism and address it early. Managers and supervisors should be provided with training, processes and support to discuss absenteeism with employees.
Below are some points to consider when developing your strategy:
- Understand the cause of staff absenteeism - Let employees know that their absences have noticeably increased and ask for reasons in a sensitive manner. Approach the conversation to show that the business is here to provide support if needed. For example, if your employees are taking too many days off due to the stress of a high workload, consider strategies to divide the workload effectively.
- Offer flexible work options - Employers can promote flexible work arrangements to recognise an employee’s personal life and obligations outside of work. Flexible work arrangements have the potential to improve employee productivity and satisfaction. However, the flexible work arrangements should always be reasonable and should not affect the employee’s ability to perform their role effectively.
- Record absences consistently - Have a software or tool that records attendances and absences clearly and consistently. Having these records help you to track employee attendance, identify patterns and understand if there are any flow on effects on the employee’s performance.
- Have an absenteeism policy - Your absenteeism policy should explain the absence notification procedures, who to contact and what is generally considered a reasonable excuse for absence.
Recording employee absences
Businesses that keep up-to-date personal leave records, will find it easier to spot patterns of absence. For example, absences may be always on the same day, or random throughout the month. If a regular pattern is developing, follow clear procedures to start discussions with the employee. This could be an informal or formal approach.
Keep in mind that employers are obligated to maintain thorough time, wage and leave records as a part of their record keeping obligations.
Informal meeting
Set up an informal welfare meeting to discuss your employee’s health and their recent absences. You may discuss the frequency and number of absences with them and look for any possible causes and what can be done to prevent further absences. It can be a softer and more approachable way to identify any issues that need to be addressed.
Be consistent after each unplanned absence. Having an informal meeting as a part of your return-to-work process may have the potential to decrease non-genuine absences.
Formal meeting
If the employee’s absences are frequent and impacting the business, an employer may consider taking a formal approach to assess the employee’s fitness for work. This involves seeking options from medical professionals to understand the employee’s current capabilities and any possible adjustments to help them do their job. This may be to the job itself, the location, or the method of working.
Formal disciplinary action should not be taken to discuss frequent absenteeism (unless the absence us unauthorised) as this could discriminate employees who have genuine reasons for their absence. Absences are generally seen as a welfare issue instead of a conduct matter. If there are breaches of a policy e.g. failing to provide a medical certificate or failing to notify management about absences, then employers may look at addressing conduct informally or through a disciplinary process.
Managing staff absenteeism with Peninsula
Employee absenteeism can be expensive, and the loss of productivity can damage your business. The way absenteeism is handled is important. We understand the way small businesses operate and the stresses they face regularly. Our tailored policies are specially designed to keep your industry and business size in mind. A custom approach for your business that tackles all problems safely and securely, letting you focus on your business while we handle the rest. To ensure your policies are in place, or for expert advice on how to manage absenteeism in your workplace, contact the Peninsula team.