Absence Management and Absenteeism Policy 

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What Is Absence Management in HR?

When employees are absent from work, whether due to illness, injury, or for another reason, Human Resources teams use absence management policies, procedures, and software in order to track and control the impact of absences on the organization.

The main goals of absence management are to minimize the negative impact of employee absences on the organization, to ensure that employees receive the support they need to return to work, and to keep the organization compliant with federal and state leave guidelines.

Absence management can include a range of strategies and interventions, such as training and educating employees, providing flexible work arrangements, offering health and wellness programs, and establishing compliant disciplinary policies for excessive or unauthorized absences.

Effective absence management improves employee engagement, productivity, and overall organizational performance while preventing the organization from behaving improperly or inconsistently towards its employees with regard to time off.

» Related Terms: Absence Management Policy, Absenteeism Policy

What Is Absence Management Software?

Absence management software is designed to streamline the process of tracking and approving employee absences, reducing the administrative burden on your HR team. Common features include:

  • Employee self-service portals where employees can request time off and view their available vacation and sick leave balances.
  • Automated workflows that route time-off requests to managers for approval.
  • Dashboards and reporting tools that provide HR departments and managers with insights into employee absence trends and patterns.
  • Integration with HRIS (Human Resources Information System) or payroll systems to ensure accurate tracking of employee time and attendance.

By automating the process of managing employee absences, businesses can reduce errors, ensure compliance with labor laws, and improve overall productivity.

For example, the BambooHR platform includes an important element of absence management in the form of time-off tracking–employees can enter the BambooHR self-service portal, view their time off balances, and request time off from their employer. Their manager is automatically notified of their request, and can approve or deny it with the click of a button.

 

How to Use Absence Tracking Data

Absence tracking data is a valuable tool for HR professionals. In addition to the need for accurate hourly data as part of payroll, having and understanding data on employee absences helps HR professionals make smarter decisions about the absence management policies they create.

Absence tracking data can be used to identify trends, develop strategies to manage employee coverage, improve productivity, and reduce costs associated with absenteeism.

Absence tracking data can also help HR professionals identify when employees may need support. For example, if an employee has been increasingly or consistently absent due to a medical condition, HR can offer resources or accommodations to help the employee remain productive while addressing their health needs.

Similarly, if an employee has frequent absences due to a family member's medical condition, HR can provide information about FMLA and other leave options to help the employee balance their work and caregiving responsibilities.

4 Tips for Creating an Absence Management Policy

1. Explain Why You Need a Policy

Absence management policy is a rule or set of rules designed to reduce employee absences through company-wide guidelines and programs. Missed days at work can be costly, leading to losses in both productivity and profits. Absences due to illness and injury are inevitable, but policies that discourage unnecessary absenteeism reduce costs and prevent workplace disruption or overburdening colleagues who make up the lost work.

Absence policy should be fair, consistent, and take into account sickness and other unforeseen circumstances that prompt employees to miss work. They strike a careful balance between offering sufficient time off to account for sickness, and being strict enough to discourage unnecessary absence and lost productivity.

2. Tell Employees What to Expect

An effective absence management policy will include a communication strategy outlining the procedures an employee is expected to follow when they must miss work. This may include details such as who to inform, how, and by when.

In addition, employees should know how their time-off policy works, how time off is accrued, how absence data is recorded and measured, and what will happen when they return back to work following a long absence. This might include an interview and discussions for how to make up the missed work and integrate into current team projects, or it might involve a clear-cut return-to-work process of retraining or gradual reintegration into a schedule or role.

Absence policy should also include a statement regarding compensation for missed days of work. It would outline how many sick or personal days an employee can take before they are no longer eligible for paid time off. If work absences become an ongoing problem for an employee, there should be a plan for Employee benefits

3. Include All Potential Reasons for Absenteeism

A comprehensive absence management policy takes into account the various reasons why an employee might miss work. These reasons might include:

  • Short-term health leave due to illness
  • Long-term health-related leave due to serious illness, injury, or surgery
  • Persistent lateness or early departure
  • Long- or short-term unauthorized leave
  • Parental or caregiver leave
  • Bereavement or mental health leave

An HR team should consider these and any other reasons why an employee might miss work when developing an absence management policy. Specific policies and relevant disciplinary action should be outlined for each type of absence.

4. Encourage Attendance

Beyond focusing only on helping employees avoid missing days of work, absence policy may include programs to encourage attendance, such as offering flexible schedules and worktimes, or allowing employees to work remotely part-time or full-time. This way, if they need to be out of the office for medical appointments, family obligations, or other personal reasons, they have a means to make up for the lost productivity on their own.

Another way to encourage attendance is to put a positive message behind absence management policy. Instead of fearing the consequences of missing too much work, employees should understand how the policy will help them balance personal issues with work, remain highly valued and on track for advancement, and other benefits.

Employees should understand that while their presence and contribution is important, there are no penalties for legitimate absences and no rewards for being at work when they should be taking time off—for example, when they are sick and could spread their illness to coworkers.

A clear, comprehensive, and well-communicated absence management policy that makes employees feel supported, protected, and cared for is the most effective kind.

What Is an Absenteeism Policy?

An Employee benefits policy is a set of procedures and guidelines that aim to reduce the number of workdays employees miss. Many absenteeism policies specify suitable reasons an employee may miss work, such as illness, injury, or scheduled personal time off. Yours may also outline Employee benefits employees may face for excessive tardiness or absenteeism. Absenteeism policies are beneficial because when employees miss too many days of work, it contributes to a loss of productivity and cuts into a company’s bottom line.

 

What Does an Absenteeism Policy Include?

Generally, any workplace policy you enact should be tailored to your organization. However, including a few standard sections will help you create a comprehensive document explaining what employees need to know such as:

Policy Purpose

First, help your employees understand why an attendance policy is necessary. By clearly explaining consistent attendance is critical for the team’s and company’s success, you can get buy-in from employees and encourage them to show up each day.

Key Concepts

Define key terms to help everyone get on the same page. For instance, explain the differences between an excused absence, an unexcused absence, and a no-show/no-call. Also, note how absences are calculated for tardiness or leaving a shift early.

Laws and Regulations

Your office absenteeism policy should account for applicable laws and regulations, such as the Employee benefits (FMLA), the Employee benefits (FLSA), and laws regarding jury duty leave. Briefly explain these regulations and how they apply to each type of employee (e.g., Employee benefits) so everyone knows their rights and responsibilities under the law.

Tracking and Procedures

Outline the process employees should follow to request time off or notify the company when they’re running late or need to take an emergency sick day. This includes specifying whom employees should contact and how to notify them. Remember to address how absences are recorded and tracked in different scenarios, such as being late or taking half days vs. whole days off.

Documentation

Specify any required documents (e.g., a doctor’s note or jury duty notice) for requesting time off or calling in sick. If your employees must document their request using a specific form, website, or computer application, include the form in your policy or give step-by-step instructions for entering their absences in your Employee benefits

Consequences

Inform employees how many sick and vacation days they’re entitled to and what happens when they miss too many days. Consequences may include losing pay, incurring a verbal or written warning, being called in for a meeting with HR, or possible Employee benefits. Before making your policy official, ensure your consequences align with all applicable employment laws.

Why Is It Important to Have an Absentee Policy in the Workplace?

In addition to improving productivity, having an attendance policy in offices can help you get a pulse on Employee benefitsand morale. If an individual employee has a high absenteeism rate, it could be a sign they need additional support in their personal or professional life. If absenteeism rates are high across the board, it may indicate employees are burned out.

Moreover, an absenteeism policy and procedure will help protect the company from potential legal action. If an employee decides to sue for unlawful termination, a clear policy outlining expectations and consequences can help the company defend itself in legal proceedings. If your company is ever audited by the US Department of Labor, an absentee policy can serve as proof of compliance.

How to Use a PTO Policy to Reduce Absenteeism

In the United States, the average absenteeism rate is 3.1%. If your rate exceeds that, it may begin to affect the productivity of your team as well as your company’s bottom line. Fortunately, creating a paid time off (PTO) policy is one way to reduce absenteeism.

PTO is a determined and agreed-upon number of days per year that an employee can take off of work for various reasons, from sickness to vacations, while still receiving their full wage or salary. For example, a company may offer 10 days, or two work weeks, of PTO in addition to state and national holidays and qualifying parental leave.

Here are some factors to consider when crafting your PTO policy:

Set Parameters

Consult with management to determine how many days employees should be permitted to take off before their absences begin to affect productivity and engagement. It’s also important to decide how they’ll accrue time off and whether you’ll offer separate time banks for different types of employee absences, such as personal days, sick time, and bereavement leave.

Document the Policy

Once the framework has been set, clearly draft the PTO policy to ensure employees understand how much PTO they’re allotted, how to report absences, and their responsibility for ensuring they don’t exceed their PTO limit. Plus, explain what counts as abusing the policy and any possible consequences for excessive unexcused absenteeism.

As a bonus, consider implementing a system to reward employees with excellent attendance records.

Educate Your Supervisors

Train your supervisors on your absence management process to avoid mishaps when determining whether an employee is a no-call/no-show. Educating your supervisors also ensures your absentee policy is applied consistently throughout the organization.

Communicate with Employees

Communicate your new policy to your employees verbally and in writing. Outline your expectations for using it, and encourage them to come to your department with any questions they may have regarding PTO days and reporting procedures. The best workplace attendance policy can help you avoid the costs associated with a disengaged workforce and chronic absenteeism while still giving your people time off to deal with life’s surprises and recharge.