Understanding and Addressing Chronic Workplace Absenteeism

The issue of chronic absenteeism looms over today’s workforce and impacts productivity, morale, and ultimately, every business’s bottom line across industries. Absenteeism disrupts the day-to-day at work and costs millions of dollars of productivity losses annually. 

In 2015, the Centers for Disease Control and Prevention (CDC) reported that absenteeism costs $225.8 billion each year. Clearly, this is an expensive issue, but it’s also preventable. 

In this blog, we delve into the various causes of chronic absenteeism and share proven solutions. We'll unravel the complexities of absenteeism and discover strategies to build a more resilient workforce!

What are chronic employee absenteeism and presenteeism?

Absenteeism is the frequent unplanned absence of an employee.

Presenteeism, another form of absence, refers to when employees come to work, but aren’t productive. They may also be arriving late, leaving early or taking extra-long breaks.

How prevalent Is absenteeism at your organization? You can calculate your absent rate to find out. 

Calculating absence rates

To calculate an absence rate, divide an employee’s absences with their total time period, then multiply by 100.

An absence rate over 1.5 percent is typically considered cause for concern. An average of 3.6 percent of the workforce is absent on regular workdays.

The American industry with the highest absence rate in 2023 was the service industry. Healthcare support, food preparation, and groundskeeping/maintenance positions had an average absence rate of 4 percent. 

The cost of absenteeism

Chronic employee absenteeism costs employers billions in lost productivity annually. In 2015, the CDC reported that absenteeism costs $225.8 billion each year in the U.S. 

As mentioned, absenteeism is expensive. Aside from the cost of replacing an absent employee, these high costs also stem from the ripple effects caused by unplanned workplace absences. 

When a team member is absent, others may need to take on additional tasks. This can lead to a decrease in productivity for both coworkers and supervisors. Unwanted overtime and conflicts with an often absent employee can decrease workplace morale, leading to more absences. 

But it doesn’t have to be this way. Chronic absenteeism is an avoidable problem. To better understand the solutions, let’s dig into the most common causes of chronic absenteeism in the workplace. 

Causes of chronic absenteeism in the workplace 

Mental health leaves  

Mental health leave is already the biggest cause of chronic absenteeism in the workplace, and unplanned absences for mental health reasons are surging. ComPsych reported that the mental health absenteeism rate was up 33 percent from 2022 to 2023. 

The Gallup 2022 Well-Being Index found that missed work due to unplanned mental health leave cost the economy $47.6 billion each year.

Despite these staggering numbers, most workplaces don’t provide enough mental health support. 

Only 15 percent of American workers said that their company offers mental health days. 

No wonder, then, why so many people are taking unplanned time off–they don’t have many other options. 

Workplace harassment, poor management and working conditions

Another common cause of absenteeism is the employee’s working conditions, which can be negatively impacted by harassment or poor management. 

A 2021 survey found that 30 percent of workers are bullied in the workplace, while another 19 percent report witnessing bullying. 65 percent of all cases are “downward bullying” – that’s repeated mistreatment inflicted on workers by their superiors.  

It only takes one incident of harassment or bullying to breach an employee’s psychological contract. Bullying could be the reason that employees aren’t fully present in the workplace–or avoiding the workplace altogether. 

Childcare challenges  

Childcare sometimes requires employees to take unplanned days of. This translates to over $28 billion in lost wages for families without access to paid leave or affordable childcare. 

Childcare leaves affect women disproportionately. According to the Census Bureau, women took 85 percent of all childcare-related absences reported by parents between January 2000 and November 2022. Women are over four times more likely to miss work than men because of childcare responsibilities, especially if their children are under five years old. 

Low-income workers with fluctuating schedules are also affected by childcare breakdowns. 51 percent of Americans live in “childcare deserts”–areas where there is no or not enough access to childcare facilities.

When only 12 percent of American workers can access childcare benefits through work, it means that 88 percent of Americans may be resorting to absenteeism. 

Lack of motivation and job hunting 

Employees prefer positive workplaces that provide tangible recognition for their efforts, along with opportunities for learning, improvement, and promotion. 

Those feeling a lack of job satisfaction will inevitably start quiet-quitting and looking elsewhere for work, leading to some employees taking unplanned absences to work on job applications or attend interviews. 

According to the 2023 Work in America Survey, 57 percent of workers who are unhappy with their workplace well-being benefits say they plan to look for a new job within the next year. 

Combine the lack of mental health support in most American workplaces with a sense of dissatisfaction and you get a serious threat to retention. 

Addressing chronic workplace absenteeism 

While there are many causes for employee absenteeism, there are also many solutions.  

Provide mental health days and a thoughtful PTO policy 

Poor mental health is often not actually an individual problem, but an environmental one. And, employee mental health directly impacts your work environment. Only 29 percent of workers feel encouraged by their managers to take care of their mental health. 

While individual workplaces cannot solve the mental health crisis, they can help their employees feel well supported through a number of thoughtful measures–starting with mental health days and a holistic PTO policy. 

The winning-est retail and healthcare companies are the ones who create emotionally healthy workplaces. Providing mental health days or personal days helps employees take care of themselves. Employees at these workplaces have doubled their productivity. 

Investigate and address possible issues with workplace dynamics    

It might be difficult to find out that harassment or management issues are behind an employee’s unplanned absences. However, addressing the root cause saves time and resources in the long run. 

By keeping an open line of communication with employees and engaging in trauma-informed management practices, employers can address multiple absenteeism-related issues at once. 

Remember earlier when we said that women are over four times more likely to miss work than men because of childcare responsibilities? The retention rate for women increased by four times in workplaces that are psychologically safe.

Essentially, in an open and empathetic workplace culture, employees will disclose needing time off instead of taking unplanned absences. This allows for employers to plan for absences, which brings us to our next point… 

Proactively create processes that address unplanned absences  

Absenteeism puts pressure on absent employees’ coworkers and managers, and is one of the many things that can cause employee burnout. 57 percent of workers experience symptoms of burnout due to job-related stress such as emotional exhaustion, a lack of motivation, and low productivity. 

Cut down on confusion and wasted time by having backup plans.  

Proactively avoid silos and delineate new responsibilities in the event of unplanned absences. This is also another way to reduce presenteeism. Employees will feel less inclined to come to work when they’re unwell if they know that there’s a succession plan in place for their tasks and responsibilities.

Randstad suggests running a staff capacity audit to better predict which areas of your organization face the most significant setbacks when absenteeism occurs, then recruiting or upskilling employees in those areas.

Plans to upskill employees should include opportunities for two-way feedback and reflection so you can make adjustments as needed. 

Provide recognition and career development opportunities  

Some employees are chronically absent because they no longer feel motivated at work. This might be because they feel under-appreciated or stagnant. 

Recognition goes a long way toward motivating employees. Ensure that you’re providing vocal and tangible appreciation where possible to acknowledge good work. Workplaces that increase employee recognition can boost productivity and see a 22 percent decrease in absenteeism.

On top of recognition, employees also want career development opportunities. ZayZoon surveyed 3250 employees across industries to determine what drives employee engagement.

• 21 percent of respondents said career development opportunities are a top factor for their engagement and satisfaction at work. 

As we mentioned above, upskilling employees also gives them the confidence to follow new directions in the event of absences, so investing in employees’ development is a win-win.

Explore employee engagement programs 

Another way to significantly reduce employees’ stress is to invest in employee engagement programs. With the right support in place, employees can take control of their mental, physical, and financial health, which reduces absenteeism and increases performance value. 

Employee financial wellness

Businesses are catching up to the fact that a direct path to employee engagement is

employee financial wellness programs. These programs simply involve providing employees with resources and tools to manage their finances and financial stress. 

Financial stress has moved from a personal issue to a pervasive workplace challenge. Three out of four U.S. workers (75 percent) are financially stressed and 84 percent of employees worry about finances while at work. Forbes stated:

 “As leaders, we must recognize that financial stress is not just a personal problem but a critical business issue that affects productivity and engagement at work.”

Earned Wage Access: decreasing employee financial stress 

A popular employee financial wellness tool for employers is Earned Wage Access (EWA) or on-demand pay, which allows employees to access their earned wages ahead of payday.

ZayZoon offers Earned Wage Access at no cost to businesses. Instant access to on-demand pay fosters a sense of security, support and higher morale in employees. 

Employees who use ZayZoon report a 74 percent improvement in financial stress. 

Not only is EWA a tangible benefit for employees, it’s also a benefit to employers. When employees are less financially stressed, they are able to show up to work more. Businesses that offer ZayZoon Earned Wage Access saw absenteeism reduced by 8 hours–one full work day–per employee, per month. 

Businesses that offer ZayZoon also reduced their employee turnover by 29 percent.  

Over 90 percent of employers who offer Earned Wage Access through ZayZoon state it helps them attract twice as many applicants and retain talent.  

Employees who use ZayZoon report that on-demand pay eases stress so that they don’t have to miss work due to financial emergencies. As a ZayZoon customer put it: ”ZayZoon has been a lifesaver in more ways than one.” 

Is absenteeism really avoidable? 

If you’re wondering if absenteeism is really avoidable, the short answer is: yes! 

Life will always throw out unexpected curveballs that require a day off, but the long-term fixes for absenteeism sit with employers, not employees. 

It may seem daunting, but there are many cost-effective solutions that could help: implementing mental health days, addressing workplace culture, proactively planning and having a “Plan B,” providing recognition or career development opportunities, and investing in employees’ financial health. 

You may think that benefits like mental health days and Earned Wage Access could make employees complacent and more prone to absenteeism, but that’s a myth. Employees are proven to feel more motivated, take initiative, and stay longer in workplaces that provide these opportunities. 

When employees feel like their employers care about their financial wellness, they are motivated to show up to work and do their best. This is why 78 percent of employees who use ZayZoon Earned Wage Access state it increases their motivation to perform at work.  

These solutions are not only inexpensive to implement, like ZayZoon, which is free to businesses–they could save your organization millions of dollars in annual productivity costs. 

Want to talk to a real person to learn more about Earned Wage Access and how ZayZoon can help you cut down on absenteeism? Get in touch!