Common Causes of Employee Absenteeism and Presenteeism (And What to Do About It)

Mar 3

Written By Editor

Indirect costs alone, employee absenteeism leads to a loss in excess of $44 billion per annum to the Australian economy.

Unscheduled absenteeism costs roughly $3,600 per year for each hourly worker, and roughly $2,650 each year for salaried employees. In addition to the financial cost, there are other costs such as workplace morale and productivity. The cost of presenteeism to businesses is almost 10 times higher than that of absenteeism. Employee absenteeism and presenteeism can be a major challenge for businesses of all sizes, and it’s not always easy to pinpoint the underlying causes.

Main Cause of Employee Absenteeism and Presenteeism

There are three main causes of absenteeism and presenteeism in the workplace.

1. Sick Leave and Employee Wellness

One of the most common causes of absenteeism is sickness. When employees get sick, they may need to take time off to recover. However, frequent sick leave can be a sign of larger issues with employee wellness. Employees who are not taking care of their physical and mental health may be more likely to get sick and take time off.

2. Work-Related Stress

Another common cause of absenteeism is work-related stress. When employees are stressed, they may experience physical and mental health problems. High levels of stress can lead to:

Absences
Decreased productivity
Increased errors

3. Lack of Engagement

A lack of engagement with work is another common cause of absenteeism. When employees are not engaged in their work, they may be more likely to take time off. Additionally, a lack of engagement can lead to:

Decreased productivity
Decreased quality of work
Increased turnover

Reducing Absenteeism and Presenteeism in the Workplace

The average absenteeism rate for Australian companies is 4.25%, in comparison to the 2022 Best Places to Work companies which experience a rate of 2.26%. To address sick leave and employee wellness, the 2022 Best Places to Work focus on employee wellness by providing resources such as:

Wellness programs
Mental health support
Healthy lifestyle education

Encouraging sick employees to stay home and take the time they need to recover also prevents the spread of illness in the workplace. Additionally, tracking employee absenteeism to identify patterns or trends leads to a better understanding of the cause of absences.

To combat work-related stress, the 2022 Best Places to Work take steps to create a positive work environment. Stress management training and counselling / support options through the Employee Assistance Program (EAP) can encourage open communication and provide support. Promoting work-life balance through flexible scheduling and remote work options can play a role in alleviating stress for your team members.

To combat a lack of engagement, the 2022 Best Places to Work take steps to increase employee engagement by:

Providing opportunities for growth and development
Recognising and rewarding employee contributions
Fostering a positive work culture
Facilitating regular feedback and communication to help employees feel more engaged and invested in their work.

Employee absenteeism is a common issue that can impact any organisation. Whether it’s due to sickness, work-related stress or a lack of engagement, absenteeism can lead to decreased productivity and increased costs. The good news is that there are many strategies that organisations can take to reduce absenteeism.

Reach out to WRK+ if you’re looking for more information on reducing employee absenteeism and presenteeism.