Introduction of Absenteeism Absenteeism is a habitual pattern of absence from a duty or obligation....
Transcript of Introduction of Absenteeism Absenteeism is a habitual pattern of absence from a duty or obligation....
Introduction of AbsenteeismAbsenteeism is a habitual pattern of absence from a duty or
obligation.
Absenteeism occurs when an employee of a company does not
come to work due to scheduled time off, illness, injury, or any
other reason. The cost of absenteeism to business, usually
expressed in terms of lost productivity, is difficult to
determine.
Traditionally, absenteeism has been viewed as an indicator of
rich individual performance, as well as a breach of an implicit
contract between employee and employer; it was seen as a
management problem, and framed in economic terms.
Absenteeism is the term generally used to refer to
unscheduled employee absences from the
workplace.
Many causes of absenteeism are legitimate—
personal illness or family issues, for example—but
absenteeism also can often be traced to other
factors such as a poor work environment or
workers who are not committed to their jobs.
If such absences become excessive, they can have
a seriously adverse impact on a business's
operations and, ultimately, its profitability.
The Causes of Absenteeism
Serious accidents and illness
low morale
poor working conditions
boredom on the job
lack of job satisfaction
inadequate leadership and poor supervision
personal problems (financial, marital, substance abuse, child care etc.)
poor physical fitness transportation problems the existence of income protection plans
(collective agreement )benefits which continue income during
periods of illness or accident.) stress workload employee discontent with the work
environment
Costs of Absenteeism
Lost productivity of the absent employee
Overtime for other employees to fill in
Decreased overall productivity of those employees
Any temporary help costs incurred
Possible loss of business or dissatisfied customers
Problems with employee morale
Establishing a System for Tracking Absences
Absenteeism policies are useless if the business does not also implement and maintain an effective system for tracking employee attendance. Some companies are able to track absenteeism through existing payroll systems (Clock In or out), but for those who do not have this option, they need to make certain that they put together a system that can:
1) keep an accurate count of individual employee absences;
2) tabulate company wide absenteeism totals;
3) calculate the financial impact that these
absences have on the business;
4) detect periods when absences are
particularly high; and
5) differentiate between various types of
absences.
Types of absenteeismThere are two types of absenteeism, each of which
requires a different type of approach. 1. Innocent Absenteeism Innocent absenteeism refers to employees who are
absent for reasons beyond their control; like sickness and injury. Innocent absenteeism is not culpable which means that it is blameless.
2. Culpable Absenteeism Culpable absenteeism refers to employees who are
absent without authorization for reasons which are within their control. For instance, an employee who is on sick leave even though he/she is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism.
Steps to deal with AbsenteeismIndividual Communication :
After all available information has been gathered, the administrator or supervisor should individually meet with each employee whom has been identified as having higher than average or questionable (or pattern) absences.
This first meeting should be used to bring concerns regarding attendance to the employee's attention.
It is also an opportunity to discuss with the employee, in some depth, the causes of his or her attendance problem and possible steps he or she can take to remedy or control the absences.
Listen carefully to the employee's responses.
Proof of Illness
Sometimes it is helpful in counseling employees with
excessive innocent or culpable absenteeism to inquire
or verify the nature and reasons of their absence.
After the Initial Interview
If after the initial interview, enough time and
counselling efforts, as appropriate, have passed and
the employee's absenteeism has not improved, it may
be necessary to take further action. Further action
must be handled with extreme caution - a mistake in
approach, timing
Counseling Innocent Absenteeism:Innocent absenteeism is not blameworthy and
therefore disciplinary action is not justified. It is obviously unfair to punish someone for conduct which is beyond his/her control.
The procedure an employer may take for innocent absenteeism is as follows: Initial counselling(s) Written counselling(s) Reduction(s) of hours and/or job reclassification Discharge
Initial Counseling Presuming you have communicated attendance expectations generally and have already identified an employee as a problem, you will have met with him or her as part of your attendance program and you should now continue to monitor the effect of these efforts on his or her attendance.
Written Counseling If the absences persist, you should meet with the employee formally and provide him/her with a letter of concern. If the absenteeism still continues to persist then the employee should be given a second letter of concern during another formal meeting. This letter would be stronger worded in that it would warn the employee that unless attendance improves, termination may be necessary.
Reduction(s) of hours and or job reclassification
In between the first and second letters the employee
may be given the option to reduce his/her hours to
better fit his/her personal circumstances. This option
must be voluntarily accepted by the employee and
cannot be offered as an ultimatum, as a reduction in
hours is a reduction in pay and therefore can be
looked upon as discipline.
Discharge: it is the last level of punishmentinnocent absenteeism dismissal case.
Has the employee done everything possible to regain their health and return to work?
Has the employer provided every assistance possible? (i.e. counseling, support, time off.)
Has the employer informed the employee of the unworkable situation resulting from their sickness?
Has the employer attempted to accommodate the employee by offering a more suitable position (if available) or a reduction of hours?
Has enough time elapsed to allow for every possible chance of recovery?
Has the employer treated the employee prejudicially in any way?
Corrective Action for Culpable Absenteeismculpable absenteeism consists of absences where
it can be demonstrated that the employee is not actually ill and is able to improve his/her attendance.
The general procedure is as follows:Initial Warning(s) Written Warning(s) Suspension(s) Discharge
Verbal Warning Formally meet with the employee and explain that income protection is to be used only when an employee is legitimately ill. Advise the employee that his/her attendance record must improve and be maintained at an improved level or further disciplinary action will result.
Written Warning Interview the employee again. Show him/her the statistics and point out that there has been no noticeable (or sufficient) improvement. Listen to the employee to see if there is a valid reason and offer any assistance you can. If no satisfactory explanation is given, advise the employee that he/she will be given a written warning.
Suspension (only after consultation with the
appropriate superiors)
If the problem of culpable absenteeism persists,
following the next interview period and
immediately following an absence, the employee
should be interviewed and advised that he/she is
to be suspended. The length of the suspension
will depend again on the severity of the problem,
the credibility of the employee's explanation, the
employee's general work performance and
length of service.
Dismissal (only after consultation with the
appropriate superiors)
Dismissals should only be considered when
all of the above conditions and procedures
have been met. The employee, upon
displaying no satisfactory improvement,
would be dismissed on the grounds of
his/her unwillingness to correct his/her
absence record.
How to Deal with Employee AbsenteeismPositive disciplinePunitive discipline.Change Management StyleChange Working ConditionsProvide IncentivesPAID TIME OFF SYSTEM :Some companies have
approached similar problems by eliminating sick leave altogether. Instead of vacation time and sick leave, the companies have developed "paid-leave banks
Develop an Attendance Policy Employee Assistance Program (EAP). American's with Disability Act (ADA) or the Family and Medical Leave Act (FMLA
Absentee Management MetricsMany approaches exist to measuring and gathering
statistics related to absentee management & employee attendance tracking. A quick online search will reveal a multitude of Absentee Management System(AMS) software: such as employee attendance tracking software, timekeeping software, employee time clock software, and employee time and attendance software. All these attendance tracking software will help to automate most employee attendance metrics & chart the absenteeism progression accordingly. However, regardless of what tracking software is selected or even what employee attendance metrics are ultimately chosen, vital to all absentee management programs are that those metrics be:
properly communicated;systematically reviewed with all employees; and,applied consistently across the employee base.To give you sense of the ‘types’ of employee
attendance policy measures utilized in the field of absenteeism management, below are a few example employee attendance metrics a typical company might employ.
Employee Attendance RecordThere are three important statistics relative to
any employee absenteeism calendar or employee attendance record system: Number of days absentNumber of incidentsPattern of absences
few steps of keeping absenteeism to a minimum.Communicate your attendance policy across
all levels in the organization clearly Measure and thereby monitor the rate of
absenteeism in your company on a regular basis
Initiate periodic health checkups to avoid absences resulting out of illness
Implement reward schemes for those employees who are regular
Create a favorable and peaceful work environment where relationship between workers and supervisors are professional and devoid of conflict.
Provide adequate training to managers
particularly authoritative ones to curb
absenteeism
Engage supervisors to speak to employees
who were absent and have returned to work
Educate and engage your employees
actively in the organization. Disciplinary action
to correct absentees should mostly be avoided.
However counseling sessions can prove useful.
Keep your employees motivated and try
making the organization a fun place to work
TurnoverIn a human resources context, turnover or labor
turnover is the rate at which an employer gains and loses employees.
Simple ways to describe it are "how long employees tend to stay“
Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry.
High turnover can be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers
Definition:“According to Pigors and Myer’s
labour turnover costs not only human values but also in money.” It includes,Costs incurred in hiring and training
each new employees.Cost of overtime, work required from
regular workers in order to maintain the requited level of production until the new employee can do his share.
Loss of production in the interval between
separation of the former employee and time
when his replacement is fully broken.
Expense in equipment or facilitates not being
fully utilized during the training period
Costs
There are two types of cost:
Direct costs relate to the leaving costs,
replacement costs and transitions costs.
Indirect costs relate to the loss of production,
reduced performance levels, unnecessary overtime
and low morale
HR Supply Forecast It is process of estimating future quantity and
quality of manpower available internally &
externally to an organization.
Supply Analysis
Existing Human Resources
Internal Sources of Supply
External Sources of Supply
Existing Human Resources Capability / Skills Inventory using HR Information
System Internal Supply
Inflows & Outflows - The number of losses & gains of staff is estimated.
Turnover Rate - refers to rate of employees leaving.
= ( No. of separations in a year / Avg no. of employees during the year ) x 100
Absenteeism - unauthorized absence from work. = ( total absentees in a year / Avg no. of employees x No.
of working days) x 100 Productivity Level - = Output / Input. Change in productivity affects no. of persons per unit of output.
External Supply External recruitment, selection & placement -
Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals
Measurement of labour turnoverTurnover can be computed for each type of
movement in and out of the company.
Following formulas are generally used to
measure the extent of labour turnover:
1.Accession Formula
2.Separation Formula
3.Replacement formula
4.Comprise formula
Accession FormulaLabour turnover ratio according to this
formula is arrived at by dividing the total accessories unit during a specified period by the average labour force that until during the same period.
Total accessories are all permanent and temporary additions to the employment roll whether new or retired employee.
Transfer from other establishment of the company are also counted
The average labour force of a specified period may be calculating by dividing the total no. of employees on the payroll at the beginning & at the period under consideration by 2.
Another measure which is occasionally used to calculate this average is the no. of employees on the payroll on the middle day of the specified period given month is 600 (585 at the beginning + 615 at the end/2) and if during the same period it has taken on 50 employees then,
585+615/2 = 600Turnover arte = 50/600*100 = 8.33 %
Separation Formula
In this formula total separation during a
specified period are taken in to account.
Total separation means all the terminations of
the employment of the persons who have quit or
have been taken off the rolls for reasons such as
lay off,discharge,retirement,death,physical
disabilities etc..
Transfer of employee to the other
establishment of the same company are also
included.
If 20 employee were separated from the
payroll during the same period in the above
example, then the turnover ration rate
according to this formula will be, See as follow
585+615/2 = 600
Turnover arte = 20/600*100 = 3.33 %
Replacement formula & Comprise formulaReplacement formula: It also known as the net
turnover rate or wastage rat e.This formula uses for the total separation which
ever is lower.(No. of employees joined/ Number of
employees).100
Comprise Formula: To minimizing the cyclical
effects upon turnover calculations some companies
average the separation & succession figure and then
divided by the average working force based upon
both separation and succession figure. See as follow
((50+20) /2/600*100 = 5.83%
Practical questionIn 2010,The Mc-Grown company have 20
workers who leave the company and 20
people are newly recruited. The number of
replacements are 10. The company
employees an average number of 200
workers in the year. Find the labour turnover
ratio for the year 2010?
SolutionNo of separation + no of replacements + no of
recruitments X 100
Average no of workers
= 20 + 10 + 20 x 100
200
= 20%
How to reduce Labour turnoverPay problem:
1.Increasing pay levels to meet competition.
2.Improving pay structure to remove inequities.
3.Altering the pay system to reduce excessive
fluctuation.
4.Introducing procedure for relating rewards
more performance
Employees learning for further their career
Providing better career opportunities and ensuring
that employees are aware of them.
Extending the opportunities for training.
Adopting and implementing promotion from within
policies and introducing more systematic and
equitable promotion procedure.
Deliberately selecting employees who are not likely
to wait move much higher than their initial jobs.
Employees leave due to conflict:Introducing more effective procedures for
consultations, participation and handling the grievance.
Improving communication by such means as briefing groups.
Using the conflict resolution and teambuilding techniques of organization development.
Reorganizing work and arrangement of offices or workshops to increase group cohesiveness
Educating 7 training management in approaches to improving their relationship with employees.
The Induction crises:
Improving the recruitment and selection
procedures to ensure that job requirements
are specified accurately and that the people
who are selected fit the specification.
Ensuring that candidates are given a realistic
picture of the job, pay and working conditions.
Developing better induction & initial training
programmes
Shortage of labour:
Improving recruitment, selection & training
for the people required
Introducing better methods of planning and
scheduling work to smooth out peack loads.
Changes in working requirements:
Ensuring the selection and promotion
procedures match the capacities of individuals
to the demand of the work.
They have to do
Provide adequate training & adjustments
period when working condition change.
Adopting payment by result systems to ensure
that unindividuals are not unduly penalized
when they are engaged in short runs