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Impact of Employee Absence on Business and Solution

September 8, 2017
Business, Employee, Absence, Absenteeism, HR, Strategy

Business is built by the employees who work for it. When these employees start getting unsatisfied for what they work for they take some action. These actions are like not supporting business or organization they are working for. Because of these action number of non-corporation from the employee increases. Employees start taking absences.

As per a report, number of absenteeism employees have taken is increased by 29% from 2015. Organizations are not taking these absences seriously. They do not understand the magnitude of it. Instead of quantifying the impact they think of it as “the cost of business”.  Because of this Organizations are facing bad impact on finance structure. Organizations must find a solution to reduce the cost and lost time in these absences.

Need of tracking the cost of absenteeism is been supported the evidences. These evidences have detected that it causes hard dollar and soft dollar impact on the business. Hard Dollar impacts are related to time, money or profit. Soft dollar impacts are about morals, values and productivity of employees.

Organizations must plan and design policies regarding tracking the cause. These numbers are increasing and affecting health of business. These policies will help in reducing the impact on the business. HR professional need data on these costs of absence then gain management support to eliminate this.

HR vs. Employee Absenteeism:

HR department is, directly or indirectly, a part of each absenteeism. HR is the one that grant leaves to the employee. It is their responsibilities that these absences will not affect the business. HR is the one who administer the policies and procedure of leave. Any type leave like sick leave, paid leave, federal leave and any proof regarding these. All are the thing that undergoes HR administration.

HR can take help of these three things in collecting data of these absences.

  1. Spread Sheet about Absenteeism
  2. Weekly Report of all Absences
  3. Attendance Policies
Cast Absenteeism:

SHRM have made a report, commissioned by Kronos Incorp, about the financial impact of employee absences. This survey has data of over 1000 SHRM employees. Survey targeted Australia, America, China, India and Mexico. Purpose of targeting different countries was to make unbiased report. These four leaves were part of the report:

  • Vacation and Personal Time Off
  • Sick Leaves
  • Paid Time Off
  • Other Paid Leaves (Civic, Parental or etc.)

This report excluded unpaid leaves. Also leaves associated with the family & Medical Leave Act (FMLA) were not part of it.


A well prepared strategy must be there from HR side. The strategy must justify the data of report or spread sheet generated. These strategy must be friendly that must not suppress productivity of employee. Moral and values of employees must be part of the new policies administering absenteeism.

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