Absenteeism in The Workplace Assignment 2 Report

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Absenteeism in the Workplace Assignment 2 Report

Challenges to The Organization

Absenteeism is the term used when an employee is not employed normally and frequently.

Excessive absences can result in lower productivity and can have a significant impact on

corporate finances, morale and other factors. Employers are looking for knowledge to better

understand how higher absenteeism costs can affect the company's performance and what

can be done to tackle this problem. There are two types of absenteeism. Approved

absenteeism is one of them. Some of the more common examples of absences excused

include vacation, holidays, grief, medical, worker’s compensation leave, some personal

obligations and sick leave. The other type is unapproved absenteeism. Unapproved

absenteeism includes time not covered by company policy, and taken without

management’s prior approval. In essence, any absence not covered by the employer's

policies and procedures may be classified as inexcusable. Since this type of activity disrupts

the business day-to-day function, up to and including termination, the employer may take

action.

The challenges that organization often faced with are divided into three different cases. The

first one is impact on individual productivity. An unplanned absence of one employee adds

to the workload of other employees who have to cover duties to keep the office or

production system running. Managers also become less productive when they have to take

time off their regular duties to find replacement employees, reorganize the workflow, and

possibly train an employee to handle the absent worker's role. If the problem continues,

added stress can lead to an increase in related health problems. If bad enough, these issues

can lead to further absenteeism, thus perpetuating the problem and also causing the
company an increase in financial stress. The second one is impact on team performance. As

the missed time of work increases, the employees in the office are left to compensate for

the work not performed by the absent employees. Even the productivity of supervisors is

affected. Supervisors spend over four hours a week dealing with absences and preparing for

or adjusting workflow to keep things moving, according to Society for Human Resource

Management (SHRM). In other words, one of the greatest negative effects of absenteeism

on the experience of the employee is the additional workload that colleagues have to take

on for the absent employees. The third one is impact on profits. Wage-earning employees

who have trouble showing up for work are still being paid without their side of the deal

being fulfilled. If firms keep spending more money on overtime pay and contract workers,

this can lead to direct costs increase and profit margins to decrease. Furthermore,

substituting workers can cost more than the wage costs of keeping the original employee. A

firm may also have to compensate current employees for overtime worked, or spend

additional hours and costs in training new employees. In addition, the administrative costs

of tracking hours, on-boarding temporary staff and finding solutions for staff are becoming

burdensome. Individuals, teams and the organization as a whole feel the impact of

absenteeism directly, putting pressure on productivity and profitability. HR leaders can have

a direct impact on organizational performance and the morale of employees by identifying

and addressing the root causes of absenteeism and taking steps to address these issues.

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