How to Minimize Employee Absences

Employee absences are more detrimental to your business than you might realize. They can cost businesses nearly 9 percent of payroll, according to a recent study. And when workers call in sick, the impact on your business isn’t just financial.

“Companies that have dedicated staff members who show up on time and ready to work have a distinct competitive advantage,” says Janet Flewelling, director of human resource operations at Insperity, a human resources and business solutions provider in Kingwood, Texas. “Managing employee absences is important to the success of the company, especially for entrepreneurs who typically have their personal assets, heart, and soul invested in the business.”

While some absences are legitimate and even unavoidable (beware the yearly flu season), plenty of others fall into the “faux coughing on voice mail” category. The following best practices will help you minimize not only employee absenteeism but its effects, ultimately boosting your business’s productivity and, ideally, profitability:

• Create an official policy: It seems obvious, but setting expectations clearly ensures employees understand you expect them to be professional, show up, and work hard. “[Communicate] to the staff that their presence at work is not only crucial to the performance of the company but also appreciated by supervisors and co-workers,” says Flewelling. Include the policy in your employee handbook. When employees notify their supervisor about an absence, Flewelling adds, the supervisor should “explain how the absence will affect the workplace and develop a plan to make up the work.”
• Motivate your team: Chronic absenteeism and tardiness are signs of a much larger problem: a dissatisfied, disengaged workforce. Of course, simply forcing employees to clock in isn’t enough; if they lack passion and drive, they’re less productive and apt to merely sleepwalk through the workday, negatively affecting your business. “Supervisors should get to know their employees and motivate them to feel that they are a vital part of the team,” says Flewelling. “This type of camaraderie will help reduce unnecessary absences.” An easy way to impact employee happiness? Offer flex time and time off for family activities.
• Track absences: Managing absenteeism means understanding who is missing work, and when. “Companies should have an organized and consistent way to track employee time off,” says Flewelling. “Many companies have transitioned to paid-time-off plans, which provide a specific number of days that traditionally include vacation time, sick days, and personal time that can be used at the employee’s discretion.” Software solutions from Advance Systems, Kronos, and various other providers can help you create a detailed picture of each employee and identify trouble spots.
• Use discipline when necessary: If you suspect an employee is abusing the system (calling in sick too often or leaving early all the time without a legitimate excuse), be prepared to impose real consequences. “Clear communication and discipline are vital, starting with feedback or coaching, then written counseling, and potentially suspension or even termination, if necessary,” says Flewelling. “Poor attendance not only impacts the absent employee’s performance but can also lead to lower morale of an entire team if the issue is not addressed fairly and consistently.” Document everything and create a paper trail. Make sure you understand your obligations under the Family and Medical Leave Act or the Americans with Disabilities Act; if in doubt, obtain legal counsel.
• Work with a temp agency: When long-term absences can’t be avoided, a temporary agency can provide you with a qualified replacement, fast. While training someone new isn’t ideal, the right fit should be up to speed in no time.