The Cost of Absenteeism

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The Cost of Absenteeism

Any company’s successful operation depends in large part on the attendance of its employees. Unnecessary or unexcused absences affect company operations. Some absences are unavoidable. Others are worth taking steps to control.

Absenteeism costs companies more money every year. Can you figure out what absenteeism costs your company in any given month? Can you multiply that by 12 to see what it costs in a year? Remember, this isn't taking into account the cost of replacing the worker, lost productivity, and the impact on morale.

What are the reasons for an increase in absenteeism?
• A work force that is less loyal and committed
• Two-career families with nobody to look after a sick child • A more mobile workforce with greater distances to travel • Older, aging parents
• Weather
• Stress

If absenteeism is a problem in your business, it pays to take some time and discover the cause of the problem. For example, if 25% of all absenteeism is caused by sick children, perhaps your company can subsidize a day care for employees.

The Case of Gretchen Washington

Case Study

Gretchen Washington has been doing routine clerical work in the accounting department of the City of Balderdash for eight months. Her tardiness record is very poor. She has been late for work on the average of six to eight times a month. Shirley Simms, her supervisor, has talked to her repeatedly. Gretchen always responds by saying she is very sorry and will try to do better. For several days she is on time, and then again she arrives late. She has a variety of unusual excuses that demonstrate a very creative mind. Her work is unusually good and would warrant a sizeable merit increase except for her tardiness.

The last time Shirley talked to Gretchen, she warned her that something more drastic would happen if she didn't get to work on time consistently. Now, just a week later, Gretchen walks in, obviously distressed, about 15...
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