Monitoring and Coordinating Attendance at the Workplace - Essay Example

? Critically analysis of three strategies Used by organisations to curtail absenteeism Introduction According to Don Schakne, absenteeism has evolved into the top most workplace problem in recent times (cited in Perry,1996,p.78).It is considered as non-attendance, when a worker is scheduled for certain task and he( or she) does not appear on work(Van der Merwe and Sylvia,1988,p.3).Vacation, study, or maternity leaves are not included in non-attendance. Pre-planned leaves are incorporated when absenteeism is measured. Pre-planned absence refers to the absence with prior notification of intended absence to the supervisor; for instance, need to go to the hospital for regular appointment or operation (Van der Merwe and Sylvia, 1998, p.4). The paper critically analyses three strategies including policy framework, monitoring and coordinating attendance, and reward system in order to curtail absenteeism. Contrary to common belief, compromising working conditions, low job satisfaction, and ill-treatment are identified to be the main reasons of absenteeism. If left unaddressed, absenteeism leads to loss of money, productivity, stress amongst co-workers and organization as a whole. The paper analyses the way a detailed, updated, and consistent policy framework prevent absenteeism before it develops. However, written policy is the first step which must be preceded with proper communication and consistent policy implementation. Policy framework is further enhanced by monitoring and coordinating attendance. Attendance tracking is identified to be more effective when linked with payroll and HRIS. Keeping and maintaining records is sufficient to keep the employees alert and absenteeism under controlled. Third strategy of reward and incentive is proactive in nature. Offering attractive reward for regular employees and incentive for potential employees who can be regular attendee seems a practical solution. However, some experts are apprehensive of its negative consequences, such as, unproductive attendance. The research and analysis of these strategies and reasons of absenteeism leads to a balanced approach. The paper suggests adopting the combination of different strategies designed in accordance to the specific needs of an organization’s absenteeism problem. 2. Causes of Absenteeism Generally perceived reasons for absenteeism include: sickness, workloads, low compensation, and family issues. However, research shows a different side of the picture. While studying employee opinion about absenteeism issue, several anonymous studies identified that neither low pay, high workloads, less compensation, and poor benefits, nor actual sickness are the causes of absenteeism. In fact, absenteeism is identified to be a symptom of bad working conditions, low job satisfaction, and ill-treatment of supervisors. An effective method to determine the reasons of employees’ absence is to inquire the supervisor for the reasons of absenteeism and the ways to curtail it. Suggestions for possible solutions will be provided by only those supervisors who have actually put some efforts in dealing with the issue (cited in Levine, 1999). It is critical to understand that reasons for absenteeism vary in different organizations. In order to implement any strategy to curtail absenteeism, employers’ must identify the underlying reasons which are leading to absenteeism in their organization. 3. Consequences of Absenteeism Absenteeism at workplace is a troublesome and costly issue, the most perturbing is the fact that approximately 50 percent of absenteeism stems from unacceptable reasons (Gwaltney, 1994, p.24).Major consequences of absenteeism are lost productivity, unreasonable overtime pay, and paid sick leave (Tyler, 1997, p.57).In addition, absenteeism at workplace leads to: lower productivity, compromising work quality, loss of team work, and increased payroll cost in the form of overtime (Miller et al. cited in  Lockhart,2001,p.8). Absenteeism frequently cause last-minute struggle for supervisor to look for replacements (Markowich et al. cited in Lockhart, 2001, p.8).According to experts estimate, absenteeism in United States causes the loss of more than 400 million workdays per year which amounts to nearly 5.1 days per employee (cited in Buschak et al. 1996, p.26).One day absence equates the expense of one and half to three times the daily rate of pay according to the estimates (Van der Merwe and Sylvia,, 1988, p.3). In recent years, number of absent employees is increasing on any day, in particular, before and after weekends. This trend has assumed distressful proportions (Allen, 1983, p.3).In addition to causing trouble and unnecessary burden for employers, absenteeism cause problems for the employees who attend work regularly. Perry (1997) states that, “Employees who do loyally come to work eventually realize they are being conned by the chronic absentees, and no one likes to be conned…once the staff come to that conclusion, that’s it. They feel… management doesn't care when the problem is not addressed” (p.89). Due to increasing pressures on companies to be profitable, it is critical for them to pay attention to the aspects of organizational life which can affect its performance. Absenteeism is an expensive burden on organization which reveals deep-rooted issues in organization’s health (McHugh, 2001, p.2).Following this realization and curbing this culture in organizations, employers are devising and adopting strategies to deal with this surge of absenteeism (Boyd cited in Lockhart, 2001, p.11). 4. Strategies to Improve Attendance Klein (1986, p.27) study identifies that the absenteeism rate is highest amongst educational and medical service providers when it comes to the professional service sector. Van der Merwe and Sylvia (1988) states, “An absence rate of 10% is serious by any standards: in general, any absence rate of over 5% should be regarded as an indicator of a situation needing further investigation… below 3% can be seen as satisfactory, although capable of further improvement” (p.25). Perry (1997, p.90) suggests that it is critical to change the status-quo as soon as the problem of absenteeism is identified. If managers let the situation prevail, they experience it worsening in no time. McHugh (2001, p.6) agrees with Perry and explains that if the problem of absenteeism is left unaddressed, its negative impacts will appear as spiral amongst other workers. Strategies to deal with absenteeism can be broadly classified as reactive and proactive. 4.1 Reactive Strategies Reactive responses towards absenteeism are based on correcting and controlling. Corrective methods include strategic approaches, such as, termination and counseling. During 1990s, traditional ways to deal with absenteeism are replaced with warnings and non-disciplinary approaches. Research proves employee assistance programs (EAPs) are far more successful when it comes to deal with employees issues which lead to absenteeism (Booth, 1993, p.3). 4.2 Proactive Strategies Proactive measures involve the strategies which prevent the absenteeism issues before they develop in the organization (Patricia, 1993, p.4).According to Laurence Kelly, employee health and wellness programs have huge potential to deal with the underlying causes of absenteeism. Kelly stresses a widespread use of these strategies in future. Proactive approaches is a general category which incorporates some critical aspects, such as, general working conditions, working hours, schedules, work pace, shifts, safety training, and ergonomics(cited in Booth,1993,p.4). Three primary and proactive strategies to curtail absenteeism may include: devising and implementing a consistent policy framework; recording, managing, and co-coordinating attendance; and establishing a reward and incentive based program in organization. 5. Policy Framework First and foremost strategy to curtail absenteeism is to ensure that the organization has a well written, properly communicated, and consistently implemented absence policy that supports organization’s objectives and culture. According to Charted Institute of Personal Development, effective absence policy must specify employees’ rights and duties in case of absence (cited in Paul, 2008, p.67). For dealing with sick leave issues and keep the company updated with the changing law, managers must connect with the employees on leave on sickness base, in addition to consistently review sick absence policy(Laurie,2008).Policy plays a critical role in drawing lines for what is acceptable for organization and what is not. In order to curtail absenteeism, it is crucial for organization to work towards understanding the reasons behind employee absence. Employers must develop programs that assist their employees to strike work-life balance which leads to reduced absenteeism(Managing Office Technology, cited in Lockhart,2001,p.10).According to Deborah (1998,p.9) most of the business organization work without an efficient and coordinated employee absence management system. Realizing this weak link, companies are re-evaluating their policies and administrative measures in order to facilitate employees through compensation and benefit programs. According to Booth (1993, p.3) the most effective strategy to tackle absenteeism and improve attendance covers a wide array of steps ranging from reactive in nature to preventive in focus. Levy (2006) suggests that organizations’ attendance policies must be reviewed and updated in order to align the organization with any revised legislation. The practice keeps the absence issue current in the organization. Policy review is critical when changes are supported by training and communication through correct channels. Several organizations have detailed policy which clarifies the organization’s principles and rationale for dealing with absence management, in addition, notification processes, documentation requirements(as cited in Paul, 2008, p.78). However, Levy (2006) cautions that absence procedures should be carefully designed and must not be too prescriptive that leave some discretion within the policy guidelines (as cited in Paul, 2008, p.78). A detailed and well-written policy is not sufficient without proper communication and consistent implementation. There are evidences which imply that written policy is nothing without implementation. McHugh (2001) identified evident inconsistency in the implementation of absence management policy while reporting absenteeism in local government in the UK. She also reports striking differences in implementing strategies within different departments. Consistent implementation is identified to be the key of lower absenteeism in some departments. These departments attribute low absenteeism with policy awareness; training provided to support employees; and coordination between human resource and other departments. It is evident from research studies discussed above that reducing absenteeism is only possible with the consistently reviewed policy, training, and implementation. The policies must be clearly communicated to the employees and managers for better understanding. Attendance standards and violation consequences must be stipulated in absenteeism policy of the organization (Paul, 2008, p.79). We can infer that devising a clear cut strategy is certainly not enough for curtailing absenteeism; it must be combined with policy communication, training, and its consistent implementation for positive results. 6. Monitoring and Co-coordinating Attendance Attendance tracking system proved to be very effective in identifying trends and patterns of employees’ absence and individual issues that lead to absence. According to survey results, it is particularly true when tracking system is associated with payroll and human resource information system (HRIS) (Booth, 1993, p.6).Booth (1993) identified that most of the surveyed organizations have applied a formalized absence tracking system. In some cases, individual employee attendance is compared with others in the same departments. In addition, built-in report assists in corporate monitoring of attendance throughout departments. Managers are often informed for the arising need of personal follow-up with a particular absentee through built-in triggers. It also provides updated, easily accessible data for costing needs. Furthermore, bimonthly automated attendance records keep the manager updated with the information required to take right decisions at the right time (p.6).Keeping record of attendance keeps the employees alert and taken care of. In addition, regular employees find it satisfactory that the absenteeism issue is being addressed. According to Booth (1993, p.6) controlling and monitoring sickness related absences emerged as a key issues during the survey. Solution used by an organization is switching insurance coverage provided by carrier to the self-administered short-term coverage. Moreover, implementing a rigorous follow-up system for illness and accidents is considered to be effective when it comes to keep the lost work time rate down. Another small financial organization keeps record of casual sick leave on not only on a unit, but also on division and corporate-wide basis. Explanations are requested when unit’s results are discovered to be above division or corporate totals. Survey respondents confirmed that keeping record is sufficiently effective for keeping ratios and usage under control. Booth’s survey (1993, p.6) results suggest the need of a comprehensive and co-ordinate approach. Separate units, however, deal with particular mandates and duties. Respondents highlighted that it should be dealt by one individual as central co-ordination system can ensure timely information exchange for better decision making. Similarly, the need for people who can take responsibility is another option. Management turnover translates into people unaware of the processes and numerous handling claims, such as, workman's compensation, STD, or long-term disability. In this way, the whole process results into lack of ownership at the end. 7. Rewards, Punishment and Incentives Recognition is the third strategy that can promote attendance and curb absenteeism. In order to promote attendance oriented culture in organization, it is crucial to motivate and keep employees satisfied. Levy (2000) suggests a balanced approach for dealing with absenteeism. He suggests rewards for the employee with ideal attendance. Incentive may include a personalized letter of appreciation from senior manager, cash bonus, and extra paid leave. On the other hand, there should be penalties for those who abuse the system. This strategy works two ways; firstly, it motivates and triggers job satisfaction amongst ideal employees. Secondly, it works as incentive for other employees to follow the ideal attendee. As a result, an attendance oriented corporate culture prevails and organization wins more satisfied and productive employees in a controlled cost. Levine (2000) agrees with Levy and suggests that, positive recognition is an effective technique to reduce absenteeism when implemented properly. The reason behind reduced absenteeism through recognition is job satisfaction (cited in Paul, 2008, p.79). Laurie (2008) also finds rewards as appealing for employees and affirms that special bonuses and non-cash incentives improve attendance. She further suggests big reward schemes, such as, a lucky draw for car or prize money that incorporates all the exceptional attendees. However, some doubt that rewarding strategy has to offer much when it comes to deal with the negative impacts of absenteeism. This strategy may curtail absenteeism; however, it may lead to ‘presenteeism’ which is far more destructive. Napsha (2008) finds rewarding regular attendees is a good idea, in particular, when rewarding cost is less than absenteeism cost. However, employers must be aware of “presenteeism” phenomenon while implementing reward strategy to curtail absenteeism. Reward system may lead to “presenteeism” which refers to the employees’ physical presence at work, but their productivity is zero because of sickness or unwillingness to work. Liford (2006) also cautions that reward strategy may lead to short-term benefit; it is because changed behavior of employees towards attendance is based on wrong reasons (cited in Paul, 2008, p.79).This situation leads to the double loss that includes productivity and reward money loss. Moreover, reward system may distract employers’ attention from actual areas of concern in some cases, for instance, identifying the exact cause of absenteeism. Experts attribute recognition as a “quick fix” to absenteeism issue as it improves attendance and promote motivational attitude. However, it does not address the root cause of the problem. Survey results identified absenteeism reduction from 13 to 7 per cent within the implementation period of eight months. Reward system has a positive impact on employees, however, not all programs are considered to be effective while dealing with absenteeism (Booth, 1993, p.6) Though reward approach works in some cases, Smanjak (2008) also discourage employing purely monetary reward incentives to reduce absenteeism. For some employees, financial gains are not the sole purpose for attending work. Employers must utilize a balanced approach that combines monetary incentives and focus on work environment (cited in Paul, 2008, p.79).Same is the case with punishment; employees may show up because of the fear of punishment, fines, or other loss. However, it can become far more difficult to keep them productive. In addition, it will have adverse impact on job satisfaction. By considering different aspects of reward and incentive based system to curtail absenteeism, it can be inferred that reward system may prove effective in some cases. Reward plans should be implemented in a discerning manner in order to avoid employees’ behavioral issues (Paul, 2008, p.79). 8. Conclusion The most critical point of emphasis in dealing with absenteeism is the identification of underlying reasons and problems. Employees’ position on absenteeism reveals that working conditions and environment are the major culprits. Considering the negative and expensive consequences of absenteeism, it is critical for the organization to address the problem before it’s too late. It is advisable to deal with the issue before it develops. Therefore, this research study critically analyses three strategies to curtail absenteeism. These strategies include: a well-written, well-communicated, updated, and consistently implemented policy framework to establish authority and rules; monitoring and coordinating attendance date to control; and reward system to motivate and encourage employees. Policy frame work is identified to be established as first and foremost strategy. Evidence revealed monitoring and coordinating as effective strategy. Rewarding strategy identified to be criticised for its impact, however, it is generally accepted as beneficial when negative aspects are controlled. Considering the varying reasons and multi-layered issues involved, it can be inferred that most balanced and effective strategy to curtail absenteeism is not a single one, but a combination of different strategies in accordance to the organization’s specific needs. References Allen, s.g.1983.How much does absenteeism cost? The Journal of Human Resources, [online] Available at [Accessed 22 July 2011]. Booth, P.L., 1993.Employee absenteeism: strategies for promoting an attendance oriented corporate culture. Ottawa: Conference Board of Canada. Buschak, M.Christa, C.and Robert, L.1996. Managing absenteeism for greater productivity.SAM advanced Management Journal, [online] Available at [Accessed 20 July 2011]. Deborah, K.S.1998.The emerging model of absence management.HR Focus, [online] Available at: [Accessed 21 July 2011]. Lockhart, J.2001. Managing absenteeism for improved productivity and cost-effectiveness. Cape Technikon Theses & Dissertations. Paper 24. [Online]Available at [Accessed 19 July 2011]. Levine, G.1999.Absenteeism: causes and sures. [Online]Available at: [Accessed 23 July 2011]. Laurie, M., 2008.Sickness absence: creating a policy. [Online]Available at :< http://www.personneltoday.com/articles/2008/02/15/44262/sickness-absence-creating-a-policy.html> [Accessed 23 July 2011]. Napsha, J., 2008.Companies offer prizes, programmes for good attendance. [Online] Tribune Review. Available at:  [Accessed 23 July 2011]. Perry, P.M.1996.Where’s Jones! It’s 9 A.M.; do you know where your employees are? Industrial Distribution, 85(6), pp.78-84. Paul, G.W., 2008. Absenteeism management at Willard Batteries.Magister Technologiae.Nelson Mandela Metropolitan University. Perry, P.M.1997.Confronting the no-show. American Nurseryman, 185(2), p.89-95. Tyler, K.1997.Dependability can be a rewarding experience.HR Magazine, [online] Available at [Accessed 21 July 2011]. McHugh, M.2001.Employee absence: an impediment to organizational health in local government. The International Journal of Public Sector Management [online] 14(1) Available at [Accessed 21 July 2011]. Van der Merwe, Sylvia, R.M.1988.Measuring absence and labor turnover. Johannesburg: Lexicon Publishers. Read More