Engaged Workforces Experience Less Absenteeism
The Relationship Between Employ Engagement and Absenteeism
Friday, March 28, 2025
Chronic absenteeism is more than just an occasional missed day—it’s a silent productivity killer that affects an organization’s morale, efficiency, and bottom line. It can be caused by many reasons: illness, injuries – both chronic and acute, childcare and eldercare, burnout, and depression.
And, it costs organizations billions of dollars each year in productivity.
What are the direct and indirect costs of absenteeism?
Where do they get their numbers? There are direct and indirect costs of absenteeism.
Direct costs are the costs an organization sustains.They include:
- Paid time off (sick leave, vacation leave, personal leave)
- Overtime pay
- Temporary workers’ pay
- Administrative costs to manage absenteeism
Indirect costs silently eat away at an organization’s bottom line. They include:
- Inadequate quality of goods and/or services.
- Increased managerial hours spent hiring and supervising replacement workers.
- Possible increased insurance premiums
- Lowered morale and productivity
Disengagement & Absenteeism:
Behind the numbers lies a deeper issue: disengagement. Employees who feel valued, connected, and engaged are far less likely to miss work. They are likely to feel less stress and more support. This increases attention (reducing the chance of accidents at work), improves employees’ immune systems (because they have reduced stress), and improves your staff’s mental health.
The connection between chronic absenteeism and employee engagement is irrefutable. By building a supportive, inclusive workplace, you can reduce absenteeism and foster a culture of accountability and motivation. Gallup reports that engaged workforces experience 41% less absenteeism.
What Employers Can Do to Reduce Absenteeism:
Conduct an Employee Engagement Survey:
Identify factors that motivate and demotivate your employees. Identify high performing teams and managers and teams and/or managers that need more support. Take meaningful actions based on staff feedback. Be responsive and committed to building a better workplace.
Offer Meaningful Healthcare Benefits:
A comprehensive healthcare plan should include access to mental health professionals, women’s health (including reproductive health, annual pap smears and mammograms), and family health. Provide workplace health education. Consider hiring a corporate nutritionist to revamp the snack area and cafeteria. Promote preventative screenings for diabetes, high blood pressure, colon cancer, breast cancer, and lung cancer.
Offer Fair Pay and Meaningful Benefits:
What do your employees want? Every workplace is its own world, and providing benefits that matter to your employees is key to reducing absenteeism. Benefits can include on-site childcare services, paid vacation time, student loan assistance, mentoring, continued education opportunities and more. Your benefits package should reflect the unique needs of your work community.
Workplace Safety:
This includes everything from environmental safety to creating appropriate work spaces. Good lighting and temperature, appropriate gear, compliance with OSHA guidelines, updated technology, and ongoing skills support and training are part of workplace safety.
Flexibility:
Flexible scheduling doesn’t mean anarchy and mayhem. It’s simply human. Allowing caregivers to leave early for a sick parent, parents to attend a school meeting without having to take a personal day, or providing remote work opportunities can make work better and more human. People do well when they’re given the space to work well and live their lives without fear of repercussions.
Reducing absenteeism isn’t just about improving attendance—it’s about fostering a healthier, more engaged workforce. When employees are present and motivated, productivity rises, morale improves, and teams work better. Organizations save time, reduce costs, and create a positive work culture where everyone feels supported and valued.
With an engagement survey, you can address the root causes of absenteeism. Implement meaningful changes and actions to improve engagement, develop your teams, and succeed.
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