Absenteeism is expensive. Some estimates put the direct costs of unscheduled
absences at $2600 - $3600 per year, per
employee, and those are just the potential direct costs. Indirect
costs of high employee absenteeism can range from low productivity of the
frustrated employees who have to make up the slack to a lowered respect for
management for putting up with it.
If you periodically experience a
spate of absenteeism try taking a positive approach to it in the form of well-planned
incentives. It can be a good strategic
decision that can save a great deal of bottom line profit and add to a positive
and engaged employee base.
Most company attendance policies
focus only on the consequences and penalties associated with poor
attendance. While it is important to
have this "stick-side" as a policy, consider the alternative of using
the “carrot-side” as well. Simple
behavior science knows that reinforcing good behaviors has more lasting value
to you than punishing bad ones. Including
incentives for employees who exemplify good attendance can be just as effective
for improving absenteeism as penalizing them for noncompliance.
A Presenteeism Program
Things to consider when planning
your incentive program:
- Set the timing for the program to include seasons where you have the most absences,
- Have a clear start and stop date
- Set clear goals for the program that
are based on realistic expectations and use past performance as the measurement
to start. Unrealistic goal setting will
guarantee that you program will fail.
- Communicate the program measurement and improvements before, during and after program completion
- Start awarding minor awards at achieving an improvement to the base, with escalating awards for incremental improvement. Think inspirational yet achievable when setting attendance rewards.
- At program conclusion make sure you recognize those employees with perfect attendance.
- The logic of the program should be as transparent as possible to avoid disputes.
- Finally, make sure the program isn't penalizing employees for allowable absences.
