Addressing Employee Absenteeism in Organisation X

According to Benefits Interface (Edited 2010: 1 of 4), absenteeism is defined as the failure of employees to report for work when they are scheduled to work. It refers to the unauthorised absence of the worker from his job. It is important to note that employees who are away from work on recognized holidays, vacations, or approved leaves of absence allowed under collective agreement provisions are not included in this definition. In South Africa, managers consider absenteeism their most serious discipline problem (Nadlangisa, 2003).

Absenteeism is a major concern for organizations worldwide, exacerbated by downsizing and efficiency measures that shrink workforce sizes (Grobler, Warnich, et al, 2006: 123).

According to a study conducted by AIC Insurance, absenteeism in South Africa is causing companies and the economy to lose over R12 billion every year. The number of absent workers rose dramatically from 0.7 million in 2000 to a staggering 397% increase by 2012 (Goldberg, 2012).

According to Hamilton-Atwell (2003: 56-61), employees are a company's most valuable asset and improving profitability hinges on enhancing returns on this asset.

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Goldberg (2012) suggests that reducing absenteeism is an effective cost-cutting measure. Managing absenteeism is vital for organizations as it affects efficiency, operations, and cost-effectiveness, posing significant costs for both the country and businesses.

Employers frequently overlook workplace issues that may be causing decreased performance and absenteeism, but addressing these problems can lead to financial benefits and improved employee performance. This study focuses on Organisation X, a medium-sized local organization, where identifying the problem is crucial when employees miss work, creating difficulties for managers and administrators.

Excessive employee absenteeism can decrease productivity and profits significantly, creating numerous problems for supervisors and the employees who work regularly (Carrell & Kuzmits, 1992: 735).

Problem Statement: The motivation for this research will be discussed by highlighting problems related to employee absenteeism as experienced within Organisation X. Main Problem: Unauthorized employee absenteeism from Organisation X and the actions that might be implemented to reduce this due to the fact that absenteeism causes a liability to the company. Sub-Problems

The unauthorized employee absenteeism is causing a decrease in various areas such as cost-effectiveness (profitability), operations (production), and efficiency (competitiveness). The problems include financial costs like overtime and agency costs for replacing workers, administrative costs such as staff time needed to secure replacement employees and re-assign remaining employees, as well as maintenance and control of absenteeism. This results in a decrease in productivity, with daily employees carrying an extra workload to support new or replacement staff.

Also, training and orienting new or replacement workers is a requirement for supervisors, leading them to neglect their own work. Absenteeism within a work group can have a significant impact on morale, as people are sensitive to fairness. If one member of the group takes excessive and perceived inappropriate absences without facing any consequences, other members may retaliate by also being absent or reducing the productivity of the entire group (Furham, 2000: 377).

The absenteeism rate in Organisation X may be attributed to various factors such as lack of commitment from employees, possibly stemming from issues like low wages, poor treatment by management, or an unpleasant working environment. Another contributing factor is the length of service within the company, which can impact employees' dedication to their job and workplace. Furthermore, the absence of consequences like incentives for good attendance or penalties for poor attendance can also lead to higher rates of absenteeism among employees.

Offering generous employee benefits, such as ample time off, may lead to employees exploiting the system. Poor working conditions can involve feeling mistreated by managers, working in a stressful environment with long hours and no breaks, handling excessive workloads, or facing strict supervision. Absenteeism can also be impacted by personal factors like family responsibilities.

The main factors leading to absenteeism at work include issues such as bad housing conditions, family problems, social and religious causes, transportation issues, accidents, and illnesses (Hamilton-Atwell, 2003: 82-95). Research questions include the causes of employee absenteeism, any patterns in absenteeism among specific groups (e.g. gender, age), the disciplinary measures in place within Organisation X's Human Resource Department, and employee attitudes towards these measures.

Possible solutions for the absenteeism problem in Organisation X may include implementing consequences, such as rewards and incentives for strong attendance, and punishments for poor attendance. Examples of consequences could include monetary bonuses, raises, and recognition (e.g. Employee of the month) for strong attendance, while employees with poor attendance records and unexcused absences may face disciplinary actions (Gitman & McDaniel, 2008: 248).

According to Chick (2004: 67), managers should enable employees to establish a work-life balance to decrease their stress levels. With the rise in dual income households and the expectation of longer work hours, managers must assist employees in navigating various demands. Gitman & McDaniel (2008: 251) emphasize the importance for employees to find a balance between their work obligations and personal life.

Follow-ups The Supervisors need to have a discussion with employees upon their return from an absence, addressing the cause of absence, potential prevention measures, and the impact of absenteeism on the company (especially if it is a recurring issue for a particular employee). Hypotheses include: I. Females demonstrate higher rates of absenteeism compared to males II. Individuals in relationships exhibit higher absentee rates than singles III. Employees with children tend to be more absent than those without children IV. Employees under 40 are more likely to be absent from work V. Current disciplinary actions do not seem to deter employees from reducing absenteeism VI.

Implementing stricter disciplinary actions can reduce employee absenteeism rates. The project aims to investigate and analyze the following:

1. The primary causes of absenteeism in Organisation X.
2. The existing disciplinary measures implemented by the HR department to combat absenteeism.
3. The employees' perceptions of these disciplinary measures.
4. The key factors that must be addressed to decrease absenteeism.
5. Recommendations for management to enhance employee attendance levels within the company.