Absenteeism costing U.S. businesses over $225 billion

In recent years, employees in the U.S. are most likely to call in sick to work on August 24th. A close second is February 13th, which is just around the corner!

While employers need to encourage and support employees who stay home from work when they’re genuinely sick, absenteeism can be a huge problem for you as a business owner.

According to the Centers for Disease Control, absenteeism cost U.S. businesses a staggering $225 billion in 2023, approximately $1,685 per employee.

That’s why it’s important to look at absenteeism in your business and invest in preventative measures.

In this article, we’ll cover:

  • Why managing and reducing absence is important
  • How to track absence effectively
  • Understanding the root causes of absence
  • Taking proactive action to reduce it

Why managing and reducing absence is important

If left unchecked, employee absence can have a ripple effect on your business, affecting everything from productivity to morale.

Here’s why it’s crucial to address this:

Financial impact: With U.S. businesses losing over $225 billion to absence, it clearly comes with a significant cost. Lost revenue, overtime expenses and the need for temporary replacements can quickly add up.

Operational efficiency: Absences disrupt workflows, delay projects and increase workloads for other employees, which can lead to stress and burnout in your team.

Employee morale: Persistent absenteeism creates an uneven distribution of work, harming team dynamics and lowering employee engagement.

How you can track absenteeism

One of the most effective ways to monitor absence is by leveraging HR software. This type of software allows you to:

• Automatically record and monitor employee absence
• Identify patterns and trends
• Generate reports to quantify the impact

Having this data at your fingertips helps you to make informed decisions and address issues proactively.

Top reasons for absence in the US

Some of the leading causes of employee absenteeism include:

• Mental health challenges, such as stress, anxiety and depression
• Illness or medical appointments, especially during cold and flu season
• Stomach bugs
• Long-term health conditions or disabilities
• Childcare or eldercare needs, such as unexpected illnesses

Understanding these reasons helps you to address the root causes and prevent unnecessary absences.

How to take action to reduce absence

The right actions depend on the specific causes of absence in your workplace.
However, here are some effective strategies:

• Cultivate a culture of well-being: Support physical and mental health through wellness programs and a positive work environment.
• Promote flexibility: Offer flexible working arrangements to help employees to manage their work-life balance.
• Encourage open communication: Create a culture where employees feel comfortable discussing issues without fear of reprisal.
• Address mental health proactively: Train managers to recognize stress and provide resources like employee assistance programs (EAP) and other mental health support programs.
• Use data to guide your actions: Tracking absenteeism data helps to identify absenteeism patterns and areas for improvement. Companies can then tailor their wellness strategies based on the specific reasons behind employee absences.

Implementing these initiatives reduces absenteeism and creates a more engaged, motivated workforce.

Need help managing absence in your business?

If you’d like tailored advice on managing and reducing absence in your business, contact us today.

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