ABSTRACT

Employee absenteeism in CQ Breyers College, Gombak results in thousands of ringgit in

revenue losses and lost productivity annually. Employee absences trend has been
increasing steadily for over two years (2018-2020) and had caused cost and disruptive for
business. The loss of company's profit exceed 15% yearly in order to pay for the lost
productivity and missed deadlines, high costs for staff replacement and overtime pay for
the replaced workers. Given the consequences those organizations could face resulting
from high levels of work absences, managements had develop strategies to manage
absenteeism to support organizational growth and sustainability. Subsequently, the
company had decided to introduce an Employee Assistance Programme basically to curb,
overcome and to manage absenteeism among the CQ Breyer's employee. An employee
assistance programme is a work-based intervention programme planned by the HR
Management of CQ Breyer College, Gombak to assist employees who has high
absenteeism, in determining personal problems that may be adversely affecting their
performance. The interval of the project is by March 2021 as to introduce the employees
to the new employee assistance programme. The purpose of this project is to examine the
impact of the programme to CQ Breyer's employees. It is also to recommend strategies
that can be used to reduce staff absenteeism and stabilise performance. The population
targeted is 45 employees from CQ Breyer College Gombak who had consistently absent
since 2018. Absenteeism in organisations globally is a costly problem which is being
neglected by management. Not only it cause loss of profits annually but it also can bring a
company to close. In order for a programme to be an effective tool to reduce absenteeism,
it needs to be formulated according to a unique model that will suit the organisation’s
unique values, beliefs and needs. Grounded in the theory of planned behaviour, the goal
of this paper is to show that the utilisation of an Employee Assistance Programme in CQ
Breyers College Gombak will effectively manage and reduce absenteeism for the
organisation.

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 CHAPTER 1

INTRODUCTION

Absenteeism is one of the eldest and most researched phenomena in the

history of human resource (HR) management and organisational behavior
(Patton & Johns, 2012). From as early as the1950s, academic researchers
observed employee absenteeism in an attempt to understand the reasons and
factors of such behavior to minimise its effects on organisations' productivity
and profitability (Gosselin, Lemyre, & Corneil, 2013.

Absenteeism is defined as a failure to report and stay at work as programmed,

in spite of any cause (Cascio W, 2010). In relation to Human Resources
management absenteeism is the proportion of work days missing through
member of staff illness or absence in the place of work (Boxall, Purcell, &
Wright, 2007).

In general, absenteeism can be defined as a consistent failure to appear,

particularly for work or other usual duty. Workers may take a leave or not report
to work for a diversity of reasons, some of these may be unmanageable factors
like illness, urgent situation, accidents and other reasons; on the other hand
also employees may also take leave while they are able to be present at
work.For that reason when recruits are absent in the workplace with any cause
whether legally or not all these kinds of absence from work are termed as
absenteeism of workers in the workplaces.

Although all employers are aware that sometimes absences are inevitable,
reduced attendance by employees can affect the bottom line by harmfully
impacting output, work excellence, self-confidence and customer service and
satisfaction. There are numerous contributing reasons that impact on an
organization’s objectives but one of the most costly is absenteeism. Employers
need to handle all forms of non-attendance in a fair and transparent way to
reduce disharmony in the workplaces.

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Managing workplace absenteeism is one of the difficult human management
issues facing employers and employees for years and even today. This study
tried to identify the causes of absenteeism in the workplace as well as its
impacts; the findings of this study will be useful to the management of human
resources and reduce employee’s absenteeism at work places. In his article
Munro (2007) suggests that the issue of absenteeism should be researched to
assess the extent of such perceptions and actual loss of working hours in a
given productivity.

According to Kutzmits and Adams (2009:280), employee absenteeism ranks

among the nation‟s most widespread and costly human resource problems.
Given this, it is surprising how many organisations are still grappling with the
true cost of employee absence (Navarro & Bass, 2006:32). Pillay (2009:1)
maintains that absenteeism occurs when employees are absent from work
when they are scheduled to be there. Such occasions can be classified as
voluntary and involuntary absence.

Involuntary absence is considered to be beyond the individual‟s control, such as

when someone is ill or has an emergency to deal with (Pillay, 2009:1). Voluntary
absence, on the other hand, is under the employee‟s direct control and can be
traced back to factors like a poor working environment, job dissatisfaction and
difficulties with line management (Pillay,2009:1).

For Sheika and Younis (2006:65), absence from work is one of the everyday
managerial realities that have a far-reaching impact on organisational
operations. They describe absenteeism as one of the most pervasive, persistent
and challenging problems confronting organisations. Absenteeism is a real
irritant for managers, forcing them to make alternative arrangements to cover for
employees who do not come to work.

When considering the implications of absenteeism for the company, Sheika and
Younis (2006:65) indicate that from the economic perspective absenteeism is
perceived as a factor that increases the overhead costs of production. The
economic impact of employee absenteeism derives mainly from the costs of
decreased productivity because of absence from work, less experienced
replacement staff and the additional expense of hiring substitute labour.

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Breyer Group Of Colleges based in Gombak offers vocational training in a
number of fields including Culinary Arts, Food & Beverage Management,
Computer Systems, Office Administration (Business) and Electric. Currently in
two years back (2018-2020) this college faced increasing absenteeism among
employees resulting to the loss of company's profit exceed 15% yearly, lost
productivity and missed deadlines, high costs for staff replacement and
overtime pay for the replaced workers.

The effects of absenteeism from an operational perspective may potentially lead

to decreased organisational productivity and growth (Livanos & Zangelidis,
2013). The effects of high absenteeism levels could negatively impact
companies because of the high costs associated with finding temporary
replacements for an organisation trying to maintain and achieve its strategic
objectives (Kocakülâh, Kelley, Mitchell, & Ruggieri, 2016). Consequently,
company leaders might experience challenges in implementing effective
strategies to reduce employee absenteeism (Kocakülâh et al., 2016).

McIntosh and Jansen (2007:135) and Beira (2008:29) concur on the usefulness
and impact of absenteeism management programmes. The authors agree that
absenteeism management programmes are beneficial in that they reward good
attendance through initiatives like promotion and incentives, which in turn
discourages non-attendance at work.

Furthermore, the effective management of absenteeism provides insight into

genuine medical needs that can be supported through well-structured employee
wellness programmes (Beira, 2008:29). Hargrave, Hiatt, Alexander and Shaffer
(2008:283) recommend an Employee Assistance Programme (EAP) to save
costs when dealing with absenteeism. This relates mostly to the number of days
saved per employee through consistent attendance at work.

Hence, this project paper is written to determine how the Employee Assistance
Programme had played an important role to reduce absenteeism in CQ
BREYER College,Gombak.

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1.2 PROBLEM STATEMENT

Absenteeism in the organisation can be managed through a systematic, planned

intervention programme that focuses on unique individual difficulties within the
workplace, with the aim of correcting the negative behaviour, viz. absenteeism.
The introduction of an Employee Assistance Programme can reduce organisational
absenteeism by utilising strategies that focus on individual patterns.

1.2.1 DEFINITIONS

•Absenteeism
According to Griffin et al (1998), absenteeism is any failure to report for, or remain
at, work as scheduled, regardless of the reason. Involuntary absence is caused by
factors beyond the control of the employee. Voluntary absence is the employee’s
deliberate choice which can be measured by the frequency index – the number of
absences in a specified period (Porteous, 1997). Thus one must differentiate
between the two types of absence, i.e. involuntary and voluntary absence.

There is an increasing acknowledgment in developing nations that health and

socioeconomic factors are critical in influencing workplace productivity. According
to Zhang W, Bansback N, Anis AH. (1998), suboptimal productivity arises from
absenteeism, or being away from scheduled work.

Private organisations with the primary purpose of maximising profit have generally
depended on austerity measures such as downsizing, restructuring and other cost-
cutting measures, which suffers added physical and mental burden on existing
employees. However, existing literature indicated that these measures could
unexpectedly result in losses caused by increased absenteeism among employees.

The cost of absenteeism to the business is well known, but now research carried
out by Institute for Health and Productivity Studies at Cornel University (USA) has
discovered that employees who turn up for work when sick have reduced
productivity levels (Softwork Erzine Archives, 2004).

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According to Johns (1994) an absence refers to the time an employee is not on the
job during scheduled working hours, or is granted a leave of absence, or holiday or
vacation time. The aggregated impact of absenteeism on the North America
economy alone, is at least $40 billion.

1.2.2 CAUSES OF ABSENTEEISM

(i) Job satisfaction

The idea that attitudes towards the job might affect attendance perhaps constitutes
the older scientific model of absence causation, and it is still dominant among
industrial organisational psychologists. The essence of this model is that
absenteeism is assumed to be a manifestation of withdrawal from, or dissatisfaction
with, aspects of the job. Job satisfaction is considered to be influenced by
situational factors such as compensation, job design, and human relations
practices.

However, in recent years, increasing attention has been directed towards a

possible dispositional substrate to satisfaction. Research has shown that a broad
personality construct called core-self-evaluation is reliably related to job satisfaction
(Judge & Bono, 2001).

The tendency for satisfaction with the work itself to predict absenteeism is probably
responsible for the well-documented tendency for people who hold a higher
occupational status to have better attendance records.

However, there are growing indicators that a more specific focus on organisational
fairness and support sheds light on withdrawal via absenteeism. Fairness and
justice connote support for the dignity and rights of employees. This raises the
question as to whether broader forms of organisational support can counter
absenteeism. Such support involves employee perceptions that the organisation is
concerned with their well-being and is willing to help them.

To summarise, unfavourable attitudes toward the job, and especially towards the

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content of the work, are predictive of absenteeism. However, there is growing
evidence that issues of work, such as fairness and support, may be especially
critical determinants of attendance patterns (Thomas & Hersen, 2002). Beyond job
satisfaction there is growing evidence that moods at work, indexed by affectivity,
are associated with absenteeism. Studies report lower absences amongst those
who react positively in the workplace (George, 1989; Iverson & Deery, 2001).

Unmet expectations

This affects new employees entering an organisation with certain expectations

relating to the opportunities of applying their skills and abilities, receiving respect
and satisfactory working conditions.

Job-person match

If an employee’s personality, abilities, and skills do not match the job requirements,
the person becomes bored or stressed, and therefore withdraws from the situation
by being absent.

Organisational culture

When there is a permissive culture within an organisation regarding absenteeism,

other employees will consider sick leave as a benefit to be utilised.

(ii) Personality

To an extent, absenteeism is under the individual’s control. Event history analyses

of individuals’ attendance records discount random or habitual models of
attendance and point to the strategic scheduling of absence. Thus it can be
concluded that a good proportion of absenteeism from work is potentially avoidable.

Integrity is a rather vague construct centred around honesty in the workplace and
the proclivity of individuals to engage in organisationally counter-productive
behaviours such as theft and absenteeism. Over the years, psychologists have
developed selection tests to tap the integrity construct. Overt integrity tests

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measure attitudes towards honesty and generally have been validated against theft.
Personality-based tests tend to centre around sub-traits of the Big Five dimensions
of conscientiousness, and they have been used successfully to predict broader
composites of counter productivity (Ones, Viswesvaran & Schmidt, 1993).

In a meta-analysis focusing specifically on absenteeism, Ones, Viswesvaran &

Schimidt (1992) reported a corrected correlation of .33 between personality-based
integrity and absence; i.e. higher integrity results in lower absenteeism.

More recently, conventional personality measures of conscientiousness have also

been shown to exhibit significant negative correlations with absenteeism (Conte &
Jacobs, 1999; Hattrup, O’Connell, & Wingate, 1998; Judge, Martocchio, &
Thoreson, 1997).

Researchers have suggested for decades that enduring personality traits account
for the moderate stability of absenteeism over time and situations. Absence
proneness emerged as the term describing the idea (Harrison and Price, 1993). For
example, Porter and Steers (1974) proposed that employees with extreme levels of
emotional instability, anxiety, low achievement orientation, aggression,
independence, and sociability were likely to be the most frequency absentees.
Assert that those who have fairly high levels of hostility, impulsiveness, social
insensitivity and alienation are more prone to engage in delinquent work behaviour
such as absenteeism.

(iii) Cognition

It is possible that certain personality characteristics influence attendance via their

impact on cognition about one’s capacity to obtain work. For example Martocchio
and Judge (1996) determined that people with a low work ethic, external locus of
control, and excuse-making tendencies were more likely to attribute absenteeism to
external, environmental causes.

Other research mirrored these finding that an external academic locus of control
prompts absenteeism from college classes (Trice and Hackburt, 1998). Johns
(1994) reported that an external health locus of control was associated with work
absenteeism. All these findings correspond with evidence that self-efficacy for

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attendance is associated with reduced absenteeism (Frayne and Latham, 1987;
Johns, 1994c; Salgo and Moscoso, 2000).

Absenteeism is actually a complex set of behaviours masquerading as a unitary

phenomenon. In effect, this means that absenteeism has different meanings for
different individuals; a fact that has been confirmed by both daily studies and
experimental policy-capturing studies revealing substantial differences in absence
causation profiles between people.

Some indirect proof of the multiple causes of absence can be inferred from the wide
variety of disciplines that have studied absence, including psychology, sociology,
economics, medicine, management, nursing, law, public health and industrial
relations.

Although absenteeism has a wide variety of causes, many of these causes are
mediated or moderated by more proximal psychological influence. For example,
economists have often demonstrated a negative relationship between wages and
absenteeism. However, such associations can be tempered by individual
differences in the value of non-work time or equity motives. Similarly, as detailed
below, there are strong indications of a psychological basis for many ostensible
medical causes of absence.

However, it is also a fact that for various reasons, people do abuse the sick leave
that is granted by organisations.

(iv) Ill health

Ill health and absenteeism is extremely costly to employees, employers and the
organisation. It has a direct impact on national economies, given the medical and
social security costs and the loss of output resulting from a reduced labour force. It
is only relatively recently, however, that absenteeism has begun to be seriously
addressed. Employers’ efforts to reduce absenteeism tend to concentrate on
tightening up procedures and implementing checks on absent workers.

Preventive activities are not common, and are generally limited to training and

9
information, and the use of proactive equipment and stress management
techniques, rather than targeting work-related causes of ill health and accidents
(Elf, 2005).

There is a relationship between lower-back pain and absenteeism. The most

striking finding is that back pain is related more often to the frequency of
absenteeism than to total time lost. Migraine is also a cause of absenteeism.
Women are more likely to experience migraines than men, and more likely to be
absent due to its symptoms.

The well-established connection between chronic pain and depression, and the
tendency for women to suffer more from depression than men, suggests that
migraine pain and resulting depression are partly responsible for elevated
absenteeism amongst women (Thomas & Hersen, 2002).

In a call centre, agents are often ill due to sick building syndrome. Other illnesses
are headaches due to glaring monitor screens, or incorrect eyeglass prescription.
Stiffness of necks or wrists and backache are common, and are caused by
repetitive movements (Sikorki, 2001). The absenteeism rate for people living with
HIV/AIDS is three times higher than for those who are not HIV positive, according
to a study conducted by AIC Insurance (Johnson, fanews.co.za).

(v) Depression

Affective disorders, including depression and neurosis, have been implicated

consistently in the occurrence of absenteeism. Furthermore, it is possible that some
reports of common minor illness, which are the most usual self-reported cause of
absenteeism, do, in fact, disguise depression. Amongst a host of illness-related and
environmental-constraints attendance, the employees were least likely to endorse
the legitimacy of depression.

The spectre of depression also runs through the other health-related causes of

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absence, such as smoking, and alcohol abuse.

(vi) Substance abuse

A large number of studies have reported an elevated absence from work among
smokers. A wealth of research shows that approximately 10% of the working
population suffers from alcohol dependency. According to Thomas & Hersen
(2002), every employee who is dependent on alcohol costs the company an extra
quarter of the employee’s salary per year due to absenteeism, occupational
accidents and loss of productivity.

Steinman et al (2003) interviewed a sample of male alcoholics of which 67% were

in employment. He found that each lost 86 working days a year due to absence.
Sixty six percent of the sample was often late for work, 61% reported Monday
morning absenteeism, and 62% sometimes took alcohol at work, with 12% doing so
regularly.

(vii) Stress

Work stress is the perceived failure to cope with job demands; a perception that is
often expressed as anxiety or tension. Stressors are environmental characteristics
that may stimulate feelings of stress. Regarding the medical model, stress is
implicated in infectious disease. The infectious disease connection is associated
with depressed immune system functioning as well as related diseases such as
upper respiratory problems. However, there is a paucity of research that explicitly
and independently measures stress, physical illness, and absenteeism (Johns,
1994).

In the escape model, absenteeism is framed as a means of simply removing

oneself from stressful organisational conditions. The off-job model posits that non-
work demands can cause stressful role conflict that results in absenteeism.

The research also shows that family/work conflicts mediate the relationship
between elder care responsibilities and self-reported absenteeism (Gignac et al,
1996). Finally, the restorative model advances the idea that absenteeism may be a

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more positive, proactive way to deal with stress, rather than a passive escape or
medical surrender (Hackett and Bycio, 1996).

(viii) Social influence

Historically, absenteeism has been viewed as an index of the adjustment of

individuals to their workplace, with little attention paid to the social context in which
such adjustments occurred. However, in the past 20 years there has been a
growing awareness of the impact of the social context on absenteeism behaviour
(Johns, 1997).

Interest in the social approach to absenteeism began with a simple but compelling
observation; absence cultures consist of shared understandings about absence
legitimacy and established customs and practices of employee absence behaviour
and its control. A key dimension of absence cultures concerns norms.
Nevertheless, there is substantial evidence that perceived expectations about how
much absenteeism is normal or typical influences individual and group attendance
behaviour (Gellatly and Luchak, 1998).

Most people are seldom absent, and a few people are often absent. Absenteeism is
a low base-rate behaviour. Thus the aggregate costs of absenteeism are often
unappreciated, and the behaviour often receives little attention until some dramatic
event occurs, such as disrupted production.

Absenteeism is often ad hoc, not well considered, and disconnected from other
human resources initiatives.

In addition, because a high rate of absenteeism is unusual, its occurrence invites

negative dispositional attributions concerning its cause. In the process, the absence
behaviour of the average employee is often ignored or untouched by the
attendance management system in place.

There are known demographic correlations of absenteeism. Meta-analytic studies

have firmly established demographic correlations with absenteeism, although the
exact reasons for these associations are poorly understood. Women tend to be
absent more than men due to stress, and physical and mental health concerns.

12
Older employees tend to be absent less than younger employees, particularly with
regard to frequency of absence. This affects men more than women, as women
tend not to exhibit an age-absence association (Thomas and Hersen, 2002).

People are self-serving regarding their own attendance records. The popular view
of absenteeism as mildly deviant behaviour motivates people to view their own
attendance records and those of others in a self-serving manner. Specifically,
people have a marked tendency to under-report their own actual absenteeism. In
addition to under-estimating their own absenteeism, people have a decided
tendency to see their own attendance records as superior to those of their work
group and occupational peers. A lack of accurate awareness of one’s own
absenteeism record is not conducive to self-regulation of attendance.

Furthermore, it is frequently argued that absenteeism levels within organisations

are subject to cultural influence. For example, Gellatly and Luchak (1998) report a
common research finding to be that an individual’s absence is affected in varying
degrees by the collective behaviour of others – through the process of employee
socialisation individuals learn how much absenteeism is expected by co-workers
and management.

Thus, individuals may experience social pressure to raise or lower their personal
absenteeism to a norm that has been established in the work group or
organisational culture.

Furthermore, there is reason to believe that absenteeism is becoming even more of

a concern to organisations. This is because global competitiveness and the pace of
environmental change have put an increased premium on speed, quality, service,
and teamwork factors that are especially vulnerable to the lack of co-ordination
prompted by elevated absenteeism. However, research also shows that
absenteeism is associated with, or predictive of, other counter-productive
behaviours, including lateness, reduced personal productivity and turnover.

According to Prater T, Smith K, the United States, absenteeism results in a total of

13
$118 billion in losses , while in the UK, the cost of absenteeism from mental ill
health annually was £8.4 billion and £15.1 billion respectively .

In Malaysia, the cost of absenteeism associated to 4.5% of the GDP in 2015

(Rasmussen B, Sweeny K, Sheehan P. Health and Economy: The impact of
wellness on workforce productivity in global markets. Report to the U.S. Chamber
of Commerce's Global Initiative on Health and Economy, VISES. Melbourne:
Victoria University; 2016).

In Asia, the work culture is largely characterised by a trend of high productivity loss
compared to Western countries in spite of the higher number of hours spent at
work. While Malaysian employees worked for about 44 h a week, there was a
reported loss of 66 days annually on average to absenteeism, compared to UK
employees who worked 35 h a week but lost only 30 days cited from The price of
success for Asia's workers. Financial Times 2017. Available from:
https://www.ft.com/content/3e27eae2-3fa9-11e7-82b6-896b95f30f58. Accessed 29
Jan 2021.

Thus, higher rates of absenteeism involve not only organisational financial loss, but
also a lower personal and work-related quality of life among Asian employees,
characterised by long working hours and ill-health.

In CQ Breyer College, Gombak, employee absences trend has been increasing

steadily for over two years (2018-2020) and had caused cost and disruptive for
business. The loss of company's profit exceed 15% yearly in order to pay for the
lost productivity and missed deadlines, high costs for staff replacement and
overtime pay for the replaced workers.

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Figure 1: Absenteeism in CQ Breyer College, Gombak 2018-2020 according to
gender

There were various reasons which can lead to absenteeism and among the causes
has been evaluated in a SWOT analysis. There were also few meetings had been

15
carried out among management and employees to resolved this issue.

1.2.3 How Are Organisations Affected By Absenteeism?

It is useful to distinguish between absence frequency and time lost. Absence

scholars have come to rely on measures of time lost and frequency to express
absence. Time lost is simply the total number of days missed due to absence over
some time period, such as a month or a year. Organisations tend to be interested in
time lost because of its direct financial impact. However, a joint consideration of
both time lost and frequency can have great diagnostic value because there is
evidence suggesting that frequency may be more likely to reflect voluntary
absenteeism.

One indirect effect of absenteeism is that it results in extra work for other healthy
employees who have to stand in for absent colleagues. In some companies,
healthy employees are increasingly working extra hours to compensate for the time
lost by their absent, or sick, colleagues. In so doing, not only do companies pay
more in terms of overtime, but workers interviewed also pointed out that they were
overworked and exhausted.

According to an engineering manager, working longer hours produced stress

amongst employees and was responsible for a decline in both the quantity and
quality of the final product. The spread of the epidemic can also contribute to
worsening labour relations. If employees do not feel that their employers are
providing adequate prevention or care services, the relationship may degenerate. In
some cases, workers demand the dismissal of their colleagues when learning of
their colleagues’ illness.

Despite the fact that absenteeism has a wide variety of causes, it tends to be
viewed by observers as mildly deviant behaviour. That is, it tends to be seen as
violating implicit workplace norms concerning regularity of attendance in exchange
for wages or salary, and is also seen as unfairly damaging the financial interests of
the employing organisation.

A loss in revenues attributable to HIV/ AIDS can occur when infected workers take
leave due to illness, need to care for other infected family members, or need to

16
attend the funerals of co-workers or loved ones.

An employer has to determine what acceptable and unacceptable levels of

absenteeism are. A simple guide is to look for patterns, including three main pieces
of information: nature, length, and frequency of absence. Decisions also need to be
reached about how many days are too much, and how many episodes are allowed
in one year before the employer decides to investigate further or start disciplinary
proceedings.

An absenteeism study conducted by Weiss (1994) in the Eastern Cape

manufacturing sector concluded that organisations that used disciplinary action as
a method to control absenteeism failed because organisations ended up dismissing
the employees.

In another strategy to combat absenteeism in the workplace, committees were

formed consisting a combination of management and employee representatives
who generally meet formally on a monthly basis to review the absence statistics,
and then informally to counsel those with poor attendance records when necessary.

These committee members were responsible for highlighting, investigating and

counselling any employees who were potential abusers of sick leave.

Incentives were used to motivate and reward employees, as unused sick leave
allowance days were paid out to employees in the form of attendance awards. The
result was that absenteeism dropped by 40%.

Subsequently, the company had decided to introduce an Employee Assistance

Programme basically to curb, overcome and to manage absenteeism among the
CQ Breyer's employee.

1.3 PROPOSED SOLUTION

Absenteeism is one of the thorniest issues in the workplace. Organisations often

17
find themselves battling with a large number of employees who do not report to
work as expected. This type of absence is not anticipated, because employees
absent themselves for duty without having been giving the necessary permission to
do so beforehand. Absenteeism is determined by conditions pertaining to
personality, attitude and sometimes gender.

Reasons for absenteeism can vary and include, inter alia, financial, social,
economic, health and personal factors. Absenteeism disrupts operations and is
often costly to the organisation (Beira, 2008:29).

While employee absence can be shown to be rooted in various sources, the

literature is reasonably consistent in the view that more stringent absence
management policies can mitigate against high levels of absenteeism. Dalton and
Todor (1993) argued that organisations can drastically reduce the extent of
employee absenteeism by adopting policies which deter, not encourage
absenteeism.

Furthermore that it should be noted that these policies do not include punishing an
employee for being absent or direct discipline of any kind; rather, the reductions in
absenteeism may merely reflect the existence of some reasonable policy which
does not encourage employee absenteeism. Leigh (1981) found liberal sick leave
policies lead to higher rates of absenteeism, and Winkler (1980) noted a
requirement to report absence directly to line management and provide certified
evidence of the reason for the absence to be associated with lower absenteeism
levels.

According to Navarro and Bass (2006:32), proper absenteeism management

involves developing programmes with guidelines that are clear and consistent,
incorporating legal requirements so they can be established across the entire
organisation.

Paton (2006:9) points out that the message to be communicated has to be

responsibility, intervention and rehabilitation when it comes to managing and
reducing absenteeism in the workplace. Therefore it concurs, because it means

18
that the employer must be accountable when managing absenteeism by consulting
with relevant stakeholders in the workplace. This is in order to come up with actions
to remedy the situation among those found to be abusing their sick leave.

Paton (2006:9) further asserts that good absentee management is about cutting
down on absenteeism while offering support to those who are genuinely ill.
Essentially, this means that a programme should not be seen as insensitive at the
expense of those who are genuinely sick. In truth, employers believe that only 10%
of cases are not related to real illness (Paton, 2006:9).

Among other conditions leading to absenteeism, HIV related incapacity is one

situation in which employers can exercise increased empathy so as to reduce
prolonged exposure to harsh office conditions that could potentially exacerbate the
symptoms leading to absenteeism (Pillay, 2009:7).

Organisations such as CQ Breyer's College have a plethora of projects on their

radar that need to be accomplished within time and budget. If the company critical
resources who are working on a high-priority project take unplanned absences, it
will restrict the project's progress, and in worse cases, bring it to a standstill.
Moreover, a team's overall output and efficiency are declined due to a lack of effort
and productivity even from one of the members.

In addition, from the managerial perspective, absenteeism leads to last-minute

hiring and increased overhead and resource costs. When an important employee
is on leave indeterminately and it's restricting the project's course, employers will
indulge in last-minute hiring that will incur extra costs to the firm. In addition to that,
it may also deteriorate the project's quality because the new recruit will not be
aware of the functionalities and client's demands and cause unintentional errors.

In a nutshell, workplace absenteeism has a major influence on a company's top

and bottom line and substantially declines organisational efficiency.

Therefore, any company like CQ Breyer's College Gombak needs to find a solid
solutions for the problem and that is the main reason why the college had take one
step closer to introduce the "Employee Assistance Programme".

19
An employee assistance programme is a work-based intervention programme
planned by the HR Management of CQ Breyer College, Gombak to assist
employees who has high absenteeism, in determining personal problems that may
be adversely affecting their performance.

In many countries, employee assistance programme traditionally have assisted

workers with issues like alcohol or substance abuse; however, most now cover a
broad range of issues such as child or elder care, relationship challenges, financial
or legal problems, wellness matters and traumatic events like workplace violence.

Realising the importance of employee assistance programme to curb absenteeism,

Breyer's College Gombak has decided to implement the programme among the
employees.

An Employee Assistance Programme may be used as a strategic tool, which is an

essential business driver, and may be used in the development and retention of
staff, thus reducing absenteeism in the workplace (Volpe, 2002). In addition, the
Employee Assistance Programme is recognised as a valuable asset to business
and industry in reducing absenteeism, workplace accidents, alcohol and substance
abuse and lost productivity. An Employee Assistance Programme is a cost-
effective way to promote productivity, increase morale, decrease medical
expenses, and most of all, to promote employee health and well-being.

Among the features that are been introduced to the programme are :

1. Improved attendance policy.

The current attendance policy for CQ Breyer has been fully renewed under The
Employee Assistance Programme. The new attendance policy includes all
guidelines regarding taking leave, tardiness, early outs and no shows. The policy is
also very details compared to the previous one and list all the repercussions for
poor attendance.

The new attendance policy is being introduced in a meeting and even flyers were
printed and emailed to all staffs to notify them the newly improved attendance

20
policy. It is well perceived as the current attendance policy had been practically
used since the early establishment of the company.

Record-keeping can be done by noting the duration of absence, trends in terms of

the most popular days for people taking sick leave and the type of illness. This can
be done by the line manager checking attendance registers and sick leave
absenteeism records (Essential tips to manage absenteeism [sa]). With proper
record-keeping, the number of absences that will be accommodated within a given
period can be determined and even brought to the attention of the employee
(Absenteeism: negative impact on bottom line…, 2006/2007).

There are numerous benefits to proper record-keeping in terms of absence

behaviour. First, this includes giving a rough estimate of the cost of sick leave
absences by noting their duration. Secondly, it offers employers an opportunity to
identify the size and cost of the absenteeism problem in a particular environment
(Essential tips to manage absenteeism [sa]). Thirdly, this careful monitoring can
lead to benchmarking of an employee‟s sick absenteeism against the company and
national trends, which can serve as an indicator of whether sickness is genuine or
is just an abuse of the system.

Records of absences will help identify whether there is a trend developing amongst
absent employees. In conclusion, both Pierce (2009) and Pillay (2009:6) emphasise
the importance of also having an attendance or absenteeism policy whereby to
monitor the extent of the problem in the organisation.

2. Re-visit disciplinary actions policy for the management.

Absenteeism policy is a set of guidelines and procedures with the purpose of

reducing the number of work days employees miss. Employee attendance policy
and procedure may outline the acceptable reasons why an employee might miss
work, such as illness, injury, or scheduled time off, as well as any disciplinary action
that might be taken for excessive absenteeism or tardiness. Because missed days
of work cut down on employee productivity, an excessive absenteeism policy is
financially beneficial to any company.

In CQ Breyer's College, Gombak, the current practice is that, management only

21
issue warning letters to employees who do not come to work for few days but have
not do anything for those who have recurrent absent. To improve that warning
letters also should be issue for those who have not come two weeks three times
per month. Management should also take actions by cutting down their pays. The
enforcement of the new rule will be able to help the employee to understand the
risks that they have to confront if they decided to take a leave from work.

The new attendance policy in CQ Breyer's College Gombak is essential to boost

productivity and minimise financial losses. It generally determined and enforced by
human resources professionals. HR staff at the college train new employees from
day one on what is expected in the workplace in terms of attendance and tardiness,
as well as the correct procedures to follow when employees need to miss work or
will be arriving late. This includes who to contact, how to clock in, and how to track
missed days. Human Resources at the company may conduct regular attendance
trainings to keep employees up to date on the new absenteeism policy and
procedure, as well as to motivate them to improve their attendance.

A programme should have rules and standards to which employees must adhere
when they are absent from work. It is important to note that there should be some
level of fairness and consistency in the application of these rules by management
(Chauke,2007:37).

According to Falcone (2009:99), it is beneficial in the long run to avoid

inconsistencies in the application of rules to avoid accusations of wrongful
termination,discrimination or retaliation from a terminated worker. For example, one
such rule that could be introduced could be that medical certificates must comply
with standards before the employer accepts them. The employer could even ask for
a second opinion from an alternative medical practitioner should the medical
certificate appear not to be authentic (Absenteeism: negative impact on bottom
line…, 2006/2007:162).

Another strategy could be to „put the ball back in the employee‟s court‟ should the
manager doubt the authenticity of a medical certificate. Levy (2003:6.6) suggests
that the employee could be asked to go back and get written answers from the
doctor to questions on, for example, the employee‟s current condition, the extent to
which it may change and whether it is necessary for him/her to seek alternative

22
employment in the meantime.

Scrutinising medical certificates in respect of unscheduled sick leave absenteeism

could assist in the early identification of occupational and social risks that could be
supported and minimized before becoming problematic. This could also lead to
timely access to appropriate health care and further reduce the risk of a medical
condition deteriorating into absenteeism owing to incapacity or disability (Beira,
2008:29).

Early action against employees who contravene set rules.This includes introducing
a rule that requires employees to contact their immediate line manager to report
their absence from work, or to provide a satisfactory explanation should they fail to
do that (Levy, 2003:5.6). Even if an employee were to produce a medical certificate
to justify his absence, failure to report is a disciplinary transgression and
progressive sanctions such as a verbal, written and final warning and then finally
dismissal could be implemented (Essential tips to manage absenteeism, [sa]).

Falcone (2009:99) maintains that, if employees are given advance notice of the
organisation‟s expectations, they should be held accountable should they not meet
the set standard going forward. Chauke (2007:40) concurs that once a supervisor
identifies an individual with higher than average patterns of unauthorised absences,
then this should be brought to that employee‟s attention, thus providing an
opportunity to rectify the behaviour before disciplinary measures are instituted or
sanctions imposed. It is therefore important for transgressors to be identified early
and dealt with properly,whether supportively or correctively.

3. Recognition for performing employees.

Recognition helps employees see that their company values them and their

contributions to the success of their team and the company overall. This is
particularly key when organisations grow or change. It helps employees build a
sense of security in their value to the company, motivating them to continue great
work.

Recognising an employee's efforts demonstrates that the job they are doing is
valuable to the business. It sends the message that their hard work is worth

23
rewarding and therefore must be important. This, in turn, makes the individual feel
that they are making a difference.

One of the main features of the Employee Assistance Programme is to recognise

the performing employees. It is called the Open Performance Appraisal. It is one of
the ways to reward the employees with good attendance. They will be given certain
award or some amount of money to motivate others as well.

Pillay (2009:6) emphasises that maintaining a consistent attendance record is one

of the good behaviours that should be rewarded scrupulously. Incentives could be
offered (Pierce, 2009) in the form of an attendance bonus (Paton, 2006:9) and
additional annual leave (Absenteeism: negative impact on bottom line…,
2006/2007). This indicates that the rewards need not always be monetary;
employees with a good attendance record are looking for some form of
acknowledgement to motivate them to keep up their good behaviour. Attendance
bonuses may also be seen as giving positive recognition to employees making an
extra effort by rewarding them (Levy, 2003:5.7).

4. Create a training pool for trainers.

Proper management training teaches much more vital skills needed to

keep employees motivated, productive and committed to the company.
A manager who knows how to properly communicate direction and assign tasks
helps employees to be more productive, with less need for overbearing micro
management.

Positive interactions increase good feelings, increase morale and improve work

satisfaction. Negative interactions create confusion, anxiety, tension and
uncertainty, which adversely affect work efficiency and company productivity. There
are many benefits to having effective working relationships.

All supervisors and managers in all departments in CQ Breyers especially for the
new appointment should be train on how to manage the employees. They should
have good rapport with the employees in order for them to work as a team.

One of the identified reasons why many employees were absent was because they

24
have bad relationship with their supervisor/managers. When employees get
a sense of belonging and feel connected to the team, they will know they are
valued in the organisation. If a team is working cohesively, every member is aware
of the task interdependencies and how their work can impact the other's
assignments.

Moreover, team collaboration allows active brainstorming where everyone's

opinions and perspective is given due importance.Thus, bringing a team
together and respecting every employee regardless of their role, race, etc. inspires
them to work and contribute better. Managers can organise various team-building
activities to enhance cooperation between their team and help them to know each
other beyond the work boundaries. A team worker will account for
his/her responsibilities better as he/she will be aware of how unplanned absence
can affect the entire team.

Thus, adequate training for the managers and employers is vital in order to create a
good and conducive working environment and senses of belonging. When
employees get a sense of belonging and feel connected to the team, they will know
they are valued in the organisation. If a team is working cohesively, every member
is aware of the task interdependencies and how their work can impact the other's
assignments. Moreover, team collaboration allows active brainstorming where
everyone's opinions and perspective is given due importance.

Consequently, bringing a team together and respecting every employee regardless

of their role, race, etc. inspires them to work and contribute better. Managers can
organise various team-building activities to coalesce their team and help them know
each other beyond the work boundaries. A team worker will account for his/her
responsibilities better as he/she will be aware of how unplanned absence can affect
the entire team.

1.4 OBJECTIVES AND SCOPES.

1.4.1 OBJECTIVES

25
1. To set clear attendance policies with incentives for all employees by March
2021.
2. To Implement an Employee Assistance Programme by March 2021.

1.4.2 SCOPE

The interval of the project is by March 2021 as to introduce the employees to the
new employee assistance programme. The purpose of this project is to examine
the impact of the programme to CQ Breyer's employees. It is also to recommend
strategies that can be used to reduce staff absenteeism and stabilise performance.
The population targeted is 45 employees from CQ Breyer College Gombak who
had consistently absent since 2018.

1.5 LIMITATIONS & CONSTRAINTS

Managing employee attendance deals with a company's strategic actions to

reduce employee absences so that workers are consistently present to do their
jobs, working productively for the organisation's benefit. A comprehensive
employee attendance programme such as the one that the CQ Breyer's College
can play a strategic role in keeping employees at work and reducing healthcare
and workers' compensation costs, thereby increasing a company's productivity and
overall business performance.

Morse (2015a) and Yilmaz (2013) noted that having a small sample process
limits the possibility of generalising the research findings to other situations and
settings. Another limitation observation included the limited scope of
information gathered; since it is based in CQ Breyer College, it did not represent
other employees in other company as well, generally.

One of the many challenges that the company will face when executing the project
is that the management or the authority may not fully agree with the policy. In
addition, the employee of CQ Breyer's College themselves may not be happy with
the new changes in the attendance policy. As for time, more time also is needed to

26
 train the manager and the employee.

While it is understood that the benefits of the Employee Assistance Programme

are important, they can also be complicated. Employees might sometimes
procrastinate on the new attendance policy. Therefore, communication is the key
to understanding what the Employee Assistance Programme can do for an
employee.

The management of CQ Breyer's College should speak directly to them about the
benefit. Let them know what it will do for them. Prepare a pamphlet spelling out
what the Employee Assistance Programme covers and the services that it covers.
Business cards with a summarisation of the benefit also should be delivered to
everybody in the company. After using these in presentations to employees, they
can be left on break room tables, at the front desk, or anywhere else employees
gather and can be casually picked up by interested employees.

Other than that, one of the constraints that might be faced by the company is the
cost of the programme. The expense involved with providing the programme might
outweigh the benefit. This might made the management/boss will not agree with
the programme.

In order to reduce the limitations and the constraints that might be facing, a
meeting should be held to help the employer as well as the employee to
understand thoroughly about the programme.

Limitation/constraint Mitigation

the management or the authority may not Management should be well informed of
fully agree with the policy the programme

employee of CQ Breyer's College Information should fully be delivered to

27
 themselves may not be happy with the new employee
changes

more time also is needed to train the Training will be carry out per fortnight so
manager and the employee. the managers will understand their tasks

Table 1: Risk Assessment (before Implementation)

Table 2:Risk Assessment (During Implementation)

Limitation/constraint Mitigation

Employees might sometimes The management of CQ Breyer's College

procrastinate on the new attendance policy.
should speak directly to them about the
benefit. Let them know what it will do for
them. Prepare a pamphlet spelling out
what the Employee Assistance Programme
covers and the services that it covers.
Business cards with a summarisation of
the benefit also should be delivered to
everybody in the company.

The expense involved with providing the Revisit the cost estimation fortnightly to
programme might outweigh the benefit. ensure the budget will not over run

Table 3:Risk Assessment (After Implementation)

Limitation/constraint Mitigation

tedious disciplinary process, A well built structure of how to carry out the

28
 disciplinary process should be develop to
ensure the process will not be complicated
and employee-friendly

resistance from employees Management should instill understanding

to employees to familiarize them with the
process and procedure in the
implementation of the Employee
Assistance Programme

lack of awareness More courses and in-house should be held

in order to create awareness among
employees

lack of management empowerment Management should set up proper

empowerment to carry out the programme

CHAPTER 2

LITERATURE REVIEW

29
2.1 Company Background

In January 2001, a group of experienced, dedicated, dynamic and committed educators

led by Group Managing Director. Mr Tankaraju had a vision of creating the workforce that
would complement the goal of Malaysia, which is to become a highly industrialised and
developed nation.

They realized the need for a skilled national workforce and thus CQ-Tec Private Limited
was established and led to the setting up of various Breyer Group of Colleges (formerly
known as CQ Breyer Group of Colleges) since 2002.

With a humble beginning of a 1400 sq ft premise, 8 computers and 2 employees at Seri

Gombak, Batu Caves, North of Kuala Lumpur, it now has flourished and grown to become
a leading provider of vocational skills training throughout Malaysia.

Apart from the Batu Caves campus, it now has a city campus in also Kuala Lumpur. The
group now has campuses at two locations, more than 70 dedicated employees, numerous
specialized laboratories, and extensive technical facilities to provide hands on training to
its students.

Breyer Group Of Colleges currently offers vocational training in a number of fields

including Culinary Arts, Food & Beverage Management, Computer Systems, Office
Administration (Business) and Electric.

Breyer is also an approved City and Guilds and CompTIA centre. At Breyer, quality is
assured through the various quality assurance systems in place.

With that Breyer have succeeded to be one of the premier skills training centres in
Malaysia. Breyer Group of Colleges constantly strive to create a positive thinking
workforce that not only posses specialised skills to build a career but essential
employability soft skills that makes them successful immediately after graduation.

2.1.1 Mission Statement of CQ Breyer’s College Gombak.

To create, develop and continuously train a thinking workforce that is positive, innovative,

30
creative and dynamic and evolves with the ever changing industrial needs to enable
graduates to be current and to command a high income and social standing at both local
and international level.

2.1.2 Vision of CQ Breyer’s College Gombak.

● A curriculum that is both national and international

● A learning environment that is both conducive and student friendly
● Hands on practical learning experience at industries
● The essential thinking skills that differentiates a positive thinking workforce from a
mere knowledge workforce
● Immediate employment opportunities
● Knowledge with appropriate work attitudes and living skillsPlease describe your
company overall with its Vision, Mission, Objectives, and
● organisation structure.

2.2 Current System / Process

Breyer College has it owns system to handle absenteeism among employees. The current
attendance policy is as below :

Attendance Policy For Breyer’s College

Objective
The purpose of this policy is to set forth Breyer’s College policy and procedures for
handling employee absences and tardiness to promote the efficient operation of the
company and minimize unscheduled absences. 

31
Policy
Punctual and regular attendance is an essential responsibility of each employee at
Breyer’s College. Employees are expected to report to work as scheduled, on time and
prepared to start working. Employees also are expected to remain at work for their entire
work schedule. Late arrival, early departure or other absences from scheduled hours are
disruptive and must be avoided.

Absence
“Absence” is defined as the failure of an employee to report for work when he or she is
scheduled to work. The two types of absences are defined below:
● Excused absence occurs when all the following conditions are met:
▪ The employee provides to his or her supervisor sufficient notice at least
48 hours in advance of the absence.
▪ The absence request is approved in advance by the employee’s
supervisor.
▪ The employee has sufficient accrued paid time off (PTO) to cover the
absence.

● Unexcused absence occurs when any of the above conditions are not met. If it is
necessary for an employee to be absent or late for work because of an illness or
an emergency, the employee must notify his or her supervisor no later than the
employee’s scheduled starting time on that same day. If the employee is unable to
call, he or she must have someone make the call.

An unexcused absence counts as one occurrence for the purposes of discipline under this
policy.
Employees with three or more consecutive days of excused absences because of illness
or injury must give Breyer’s College proof of physician’s care and a fitness for duty release
prior to returning to work.
Employees must take earned MC for every absence unless otherwise allowed by
company policy (e.g., leave of absence, bereavement, jury duty).

Tardiness and Early Departures

Employees are expected to report to work and return from scheduled breaks on time. If

32
employees cannot report to work as scheduled, they must notify their supervisor no later
than their regular starting time. This notification does not excuse the tardiness but simply
notifies the supervisor that a schedule change may be necessary.
Employees who must leave work before the end of their scheduled shift must notify a
supervisor immediately.
Tardiness and early departures are each one-half an occurrence for the purpose of
discipline under this policy.

Disciplinary Action

Excessive absenteeism is defined as two or more occurrences of unexcused absence in a

30-day period and will result in disciplinary action. Eight occurrences of unexcused
absence in a 12-month period are considered grounds for termination.

Job Abandonment
Any employee who fails to report to work for a period of three days or more without
notifying his or her supervisor will be considered to have abandoned the job and
voluntarily terminated the employment relationship. 

Nevertheless, since 2018 to 2020 the trend of absenteeism increased as follows:

33
Figure 2: Absenteeism in CQ Breyer College 2018-2020

There are various aspects of organisational and managerial practice which may contribute
to employee absenteeism, whether through inducing illness or injury or through
contributing to low levels of employee motivation. These include the way in which tasks or
the work context are organised; the structure of the organisation and the nature of the
management hierarchy; and low levels of employee responsibility, autonomy, job
satisfaction and organisational commitment.

This view is further supported by Saratoga (1998) who argues that from a management
perspective, high employee absenteeism is a very clear indicator of some form of

34
organisational misbehaviour, often indicating dissatisfaction with the organisation which
requires analysis and action.

For over two decades researchers have persistently and gradually refined the meaning of
organisational commitment. It has evolved into a complex concept that can serve as a
summary index of work-related experiences and as predictor of work behaviour intentions
(Cotton and Tuttle, 1986; Dalton and Mesch, 1990; Rentsch and Steel, 1998).

Porter et al (1974) defined commitment as the strength of an individual’s identification

with, and involvement in, a particular organisation, having based this assessment on
measures of motivation, identification with the values of the organisation, and the
employee’s intentions of remaining as members.

Buchanan (1974) took this definition one stage further and described commitment as
being a partisan affective attachment to the goals and values of an organisation, to one’s
roles in relation to the goals and values, and to the organisation for its own sake, apart
from its purely instrumental worth. Commitment to the organisation has been found to be
positively related to such organisational outcomes as job satisfaction, motivation and
attendance (i.e. low rates of absenteeism). At the same time, commitment has been found
to be negatively related to outcomes such as absenteeism and labour turnover (Cotton &
Tuttle, 1986; Clegg, 1983).

2.2 SWOT ANALYSIS ON CURRENT STRATEGY

SWOT analysis is a strategic planning technique used to help a person or organization

identify strengths, weaknesses, opportunities, and threats related to business competition
or project planning.

STRENGTH WEAKNESSES
● Well written ● Not too strict

35
 ● Very clear policy ● Some employees take the
● Easy to understand advantage of the system
● No human factors
● Working environment is not
conducive enough

OPPORTUNITY THREAT

● Policy is editable ● Management/boss may not agree

● Some employee are good and with the new solution
ready to oblige with anything that is
been proposed by the company

Figure 3 : SWOT analysis on current strategies

Among the problems that had been found from the SWOT analysis is that the college has
not implemented the ‘human’ factors in the policy. The working environment was not very
conducive and there are employees who felt demotivated to come to work. Therefore,
Breyer’s College has come out with a solution model i.e Employee Assistance
Programme to complement the existence Attendance Policy.

2.3 Solution Model

Beira (2008:28-29) noted some of the many benefits associated with managing
absenteeism in organisations, as listed below:

 Provides insight into genuine medical needs that could be supported with well
structured
 employee health, lifestyle and wellness programmes;

36
  Provides support for employees who genuinely need assistance;
 Saves existing paid sick leave costs by preventing abuse of the system;
 Reduces the risk of human capital loss through burnout, exhaustion and fatigue;
 Good attendance record signals reliability and suitability for promotion (Beira,
 2008:28-29);
 Net benefits of not attending work are outweighed by those of working (McIntosh
 & Jansen, 2007:135).

From the above list, it was convinced that the importance of having a programme geared
specifically towards addressing absenteeism. If organisations could introduce a
programme based on convictions similar to those of Beira (2008) and McIntosh and
Jansen (2007), it could potentially be a win-win situation for all. Without
argument, an institution could reap many rewards from a sound programme for
managing absenteeism, demonstrating genuine care for seriously-ill employees,
preventing the abuse of sick leave and promoting and maintaining good attendance
records.

First, employees who are genuinely ill would have the opportunity to receive support
from the employer by means of various health and wellness initiatives. Further, the
employer would not be seen to be encouraging productivity at the expense of those with
real health concerns. Secondly, misuse of the system could be prevented, as all actions
pertaining to attendance records and absence behaviour would be openly monitored.
Thirdly, taking note of trends and patterns would also ensure that those with a good
record of attendance were noted. Often, line managers put all their energy and
resources into culprits at the expense of good employees.

When employees become aware that management rewards good attendance, more
would want to be in line to reap the rewards. Human beings thrive on receiving positive
reinforcement and being acknowledged for good behaviour. Lastly, measures could be
put in place to proactively address stress before it escalated into burnout, because
everyone would be involved in managing absenteeism in some way.

37
2.3.1 The Employee Assistance Programme.

The modern day Employee Assistance Programme has developed into a sophisticated
management resource that may be utilised not only for the reduction of absenteeism, but
also for the development of skills, improved productivity and profitability. It may even
provide an organisation with the opportunity to become an employer of choice on the
basis of being an organisation that nurtures and cares for the well-being of its employees
(Moodley, 2003).

According to Hopkins (2003), an Employee Assistance Programme is a work-based

programme to improve organisational performance through the provision of structured
management and employee support services.

An Employee Assistance Programme may also be defined as a professional assessment

and referral and/or short- term counselling service offered to employees with alcohol,
drugs, or mental health problems that may be affecting their work. It may include
managerial-supervisory consultations, training, and employee education. Employees are
either self-referred to the company’s EAP or referred by supervisors (Masi, 1992).

The current definition refers to an Employee Assistance Programme as a programme of

intervention associated with the work context, usually at the level of the individual
employee, using behavioural science knowledge and methods for the control of certain
work-related problems that adversely affect job performance, with the objective of then
enabling an individual to return to making her or his job contribution and regaining full
functioning in personal life (Berridge et al, 1997).

An Employee Assistance Programme may be used as a tactical instrument, which is an

essential business driver, and may be used in the development and retention of staff, thus
reducing absenteeism in the workplace (Volpe, 2002). In addition, the Employee
Assistance Programme is recognised as a valuable asset to business and industry in
reducing absenteeism, workplace accidents, alcohol and substance abuse and lost
productivity. An Employee Assistance Programme is a cost-effective way to promote
productivity, increase morale, decrease medical expenses, and most of all, to promote
employee health and well-being.

38
The Employee assistance program (EAP) is a work-based intervention program in CQ
Breyer College that is designed to assist employees in resolving attendance problems that
had been adversely affecting the employee's performance. It is not designed to replace
the existence attendance policy but to complement it.

In Breyer’s College, the current practice is that, management only issue warning letters to
employees who do not come to work for few days but have not do anything for those who
have recurrent absent. To improve that warning letters also should be issue for those who
have not come two weeks three times per month. Management should also take actions
by cutting down their pays.

In addition, all supervisors and managers in all departments in CQ Breyers especially for
the new appointment should be train on how to manage the employees. They should have
good rapport with the employees in order for them to work as a team. One of the identified
reasons why many employees were absent was because they have bad relationship with
their supervisor/managers.

Under Employee Assistance Programme also Open Performance Appraisal had been
introduced. It is one of the ways to reward the employees. All the employees with good
attendance will be give certain award or some amount of money to motivate others as
well.

As one of the result from the SWOT that had been carried out, it is obvious that good
relationship should be strengthened between the managers and the workers. A condusive
environment is helping the employees to work better. In order to achieve this, both
managers and worker should strengthened their relationship. Under Employee Assistance
Programme, CQ Breyer College plan many activities that will help to foster good
relationship such as birthday celebrations, exchanging of gifts,festival celebrations etc.

The current attendance policy for CQ Breyer has been fully renewed under The
Employee Assistance Programme. The new attendance policy includes all guidelines
regarding taking leave, tardiness, early outs and no shows. The policy is also very detail
compared to the previous one and list all the repercussions for poor attendance.

Table 3

39
Old Process New Process Business Improvement

Current attendance policy Improve attendance policy. By the end of 2021, the
had been used since 1996. numbers of employee

There is no disciplinary Re visit disciplinary actions absenteeism will reduce and

actions –only warning letter policy for the management. the total revenue will
increase to 30%
No current open appraisal Recognition for performing
programme for employee employees.

Managers are not well Create a training pool for

trained to supervise trainers
employee

40
 PENGURUS PUSAT BERTAULIAH
MURNI BINTI YUSRIZAL

FINANCE & HR ADMINISTRATIVE GRAPHIC DESIGNER

KALARANI SUBRAMANIAM NUR HAFIZAH BINTI AZIZ ACADEMIC STAFF NURUL AIMAN NADIA MARKETING STAFF
AZIZAH BINTI ARIFFIN BINTI AZAHAR SITI MAS AYU BINTI MOHD
BARATI LAUREEN A/P NOR
RAYAPPAN CASHIER CUM ADMIN PRIYA A/P
JEEVITA A/P GUNA HASJIAH BINTI HASSAN CHANDRASEKARAN
NUR DANIA ARMISHA BINTI
SAHROL NIZAM
GENERAL STAFF NUR ALIA SUHAILA BINTI
AZMI BIN AZIZ AZMAN
SANIYAH BT SAINI
RAGUAN A/L SINNATHAMBY
ROZIN BIN MOHD SHUKOR
SHAMSUL KAMAL

INFORMATION SYSTEM COMPUTER SYSTEM ELECTRICAL DEPARTMENT FOOD & BEVERAGES

CULINARY ART
DEPARTMENT DEPARTMENT PPD DEPARTMENT
DEPARTMENT
PPD PPD L.THEEBAN RAO PPD
PPD
ANTHONY AMMH A/P NUR BAZILAH BINTI IBRAHIM PP SANIZA ASMA BINTI
SITI NADHIRAH BINTI
KOLANDASAMY PP NURUL AMIRAH BINTI ABU BAKAR
LIZHARLI
PP FARAH IZZATI BINTI MOHD FAUZI HAMIDI PP
PP
K. HEMALATHA SHANTHINEE A/P GOPAL NUR SYAFIQAH BT ZAKI NURIN HAZWA BINTI
NANCY NAIS HASHIM HASHIM
NOR ASMIRA BINTI ABIDIN MUHAMMAD FARIS BIN NUR HAFFIZA BINTI
JAFRI VIANISH
MOHD TAUFEK BIN JOHARI
PUTERI BALKIS BINTI
YUSOF
ANIS SOLEHAH BINTI

41
 CHAPTER 3

IMPLEMENTATION STRATEGY

In order for an employee assistance programme to be effective in reducing absenteeism

in the workplace it must be a strategic intervention designed to produce organisational
benefits quantifiable by outcomes measurement, through a system-led approach to
people management. It must include a mechanism for providing counselling and other
forms of assistance to employees on a systematic and uniform basis, in accordance with
recognised standards.

Implementation of an employee assistance programme calls for a systematic approach to

the provision of workplace support in general, and counselling in particular. It requires an
overall strategy, based on an organisation’s current and future needs; design,
implementation and promotion; manager and employee training; and professional
delivery, monitoring and evaluation.

The following figure illustrates the various facets of an employee assistance programme.

Figure 4 - Facets of an EAP (Hopkins, 2003b)

42
3.1 Essential Requirements For The Employee Assistance Programme In CQ
Breyer College

According to Masi (1992), a successful Employee Assistance Programme rests on the

following essential requirements:

3.1.1 Policy statement

The written policy statement should clearly define the purpose of the programme, the
organisational and legal mandates, the employee’s eligibility, the roles and responsibility
of various personnel in the organisation, and the procedures. This statement should be
endorsed by the highest level of management and should have the formal support of
unions (if applicable).

The statement should set out important parameters for the entire operation of the
Employee Assistance Programme. It may indicate, for example, who can use the
Employee Assistance Programme service, how confidential information will be handled,
methods for programme evaluation, whether an employee should receive time off from
work for appointments, and how client records should be kept and for how long.

Further, it may state how to ensure the principles and direction of the Employee
Assistance Programme are fair, consistent and balanced with regard to the interests of all
the different stakeholders. The objective of the policy statement should be to describe
referral procedures, ensure uniformity of referrals, and specify those social problems
impacting negatively on job performance and social functioning.

Nowadays, the Employee Assistance Programme is under pressure from managers who
are critical of Employee Assistance Programme’s and want continued proof that an
Employee Assistance Programme produces a significant return on their investment
(Maiden, 1997). This, according to Moema (1996), leads to the “emergence and
proliferation of managed care and its demands for patient outcome data and information
supporting the efficacy of the services rendered”.

43
3.1.2 Professional staff / team member

Staff responsible for an Employee Assistance Programme must be educated and

recognised as professionally trained in specific areas and should have appropriate
credentials and/or a license. In addition, these professionals should have the ability and
flexibility to work with managers, supervisors and employees.

3.1.3 Staffing levels

The number and qualifications of the programme professionals should match programme
needs, irrespective of whether the programme is internal and/or delivered by external
contractors. Thus in order to employ sufficient staff to achieve the goals and objectives of
the programme it is essential to assign to the programme an appropriate level of
administrative support staff who are sensitive to the confidential and ethical issues of the
programme.

3.1.4 Staffing criteria

Depending upon the type of service, various levels of experience, education, and
registration may be required. The function of appropriately staffing of this programme is to
ensure recognition of limitations of their competence and to make certain that all work is
performed within the scope of experience. A person who is qualified should supervise
those individuals who are called upon to provide services which cannot be provided in-
house.

3.1.5 Costing/funding

There are two options; the organisation maintains an in-house staff, or it contracts out all
functions on a per capita basis. The cost is usually based on the total number of
employees in the company, regardless of how many use of the programme and how they
use the programme.

44
3.1.6 Management training

Supervisors or managers, especially if they make referrals to the assistance programmes,

must be properly trained. Managers should understand the programme policies,
procedures and the services, and be clear about their role in relation to the plan.

Managers should identify the performance problem, and not make clinical diagnoses, and
should encourage employees to use the Employee Assistance Programme services.

Managers need to understand that this service is voluntary and must not be used as a
punitive measure. Rather, this programme can be used as an opportunity to obtain
assistance before dismissal. Therefore it is important that the manager is trained to view
the referral as a service that helps to curb absenteeism among CQ Breyers employee,
rather than one that will embarrass or humiliate the employee.

3.1.7 Marketing the Employee Assitance Programme among employees

This programme needs to be effectively promoted in order to inform the entire employee
population in the organisation about the available services. Memos, e-mails, posters and
presentations including slides, films and brochures should be within the reach of all
employees. The use of familiar language will easily educate the CQ Breyers College
employees about the programme. Promotional material can be handed out during tea and
lunch breaks in canteens or cafeterias.

According to (Maiden, 1992) if employees feel that their problems are not safe within the
Employee Assistance Programme department they will stop utilising the services.

It is therefore important that, as management needs proof of the programme’s benefits for
the organisation, they should not jeopardise the confidentiality code.

45
3.2 Success Criteria For Employee Assistance Programme In Cq Breyers
College,Gombak

3.2.1 Review

It is the responsibility of management to track the trends in their own and other
organisations, and to offer suggestions for their programme’s ongoing success.

3.2.2 Professional ethics

Appointed committee member should always maintain professional ethics. They

should determine strategies to maintain confidentiality in order to avoid possible
lawsuits that might ensue and cause delays in rendering the service, and ensure
ethical behaviour and eliminate unethical practices.

3.2.3 Supervisory application

is the responsibility of the committee member to guide the supervisors and inform
them about any discrepancies.

3.2.4 Communication

There should be a mutual interaction between the selected committee member

and the employee that they are serving. They should also encourage the same
interaction amongst employees and their supervisors/managers.

3.2.5 Capacity

The appointed committee member should hold workshops with members on how
to accommodate diversity at the workplace. Diversity also involves language and
culture differences. Disability in the workplace should also be considered, and
employees should be treated with respect.

46
3.2.6 Design and consultation

CQ Breyers College should an Employee Assistance Programme that will be in

line with their policies. Employees should be consulted and their inputs must be
considered.

3.2.7 Positioning

Management should be well informed about the trends that are being followed.
It must be noted that there has been a great deal of mistrust between employees
and employers, and a programme that is provided by the employers will surely be
viewed with suspicion and the attitudes of employees towards the programme will
be cautious.

Creative new programming ideas in supervisory/union training and employee

education should be explored as devices to keep the programme in demand and
the programmes properly maintained at individual work sites.

Two basic principles apply; first, all employees should be exposed to conditions that
encourage reasonable attendance, not just high absenteeism. Next, the wide range of
meanings or causes of absenteeism should be dealt with, suggesting a multi- pronged
approach. During the recruitment process the reference check needs to include an inquiry
regarding absenteeism.

47
3.3 Team

An employee assistance program in CQ Breyers College, Gombak is designed to address

reasons for reducing absenteeism. It aids employees to solve whatever problems that
they have and promote conducive environment and later help them to improve focus and
performance. Setting up an Employee Assistance Programme includes drafting and
implementing a policy. Assembling a team or committee including members of human
resources is the first step to be taken into account before launching the employee
assistance programme in Breyers College.

This team is set up to decide on an operational model for the program. The team or
committee must decide whether to implement an internal programme, where basic
assistance is provided by a designated department within the organization, or an external
programme where an independent coordinator is contracted to direct employees to the
specific professional services needed.

After a meeting with the management, the team was built among the Human Resources
Department employee and managers. It is a full internal programme so there is no
external coordinator or team members involved.

Employee Assistance Programme CQ Breyers College 2021

Team Member

No NAME POST RESPONSIBILITY

.

Project Manager ● help to address productivity

1 AZIZAH ARIFFIN
Employee issues by providing
Assistance employees
Programme Plan with programmes and
Manager services that address
personal issues that may
affect job performance.
● administer these programs,
intervene when necessary,
and to enhance the health

48
 and wellbeing of all
employees.
2. KALARANI Committee 1 ● Setting up the new improved
SUBRAMANIAM
attendance policy

3. BHARATI LAUREEN Committee 2 ● Re visit disciplinary actions

JAYAPPAN policy for the management.
● Distributing disciplinary
letters

4. JEEVITA A/P GUNA Committee 3 ● Recognition for performing

employees.
● Conducting team building
programme

5. NURHAFIZAH AZIZ Committee 4 ● Create a training pool for

trainers
● Do in house course for
managers

Table 5- Committee Member

49
 3.4 Timeline
CQ BREYERS GANTT CHART
EMPLOYEE ASSISTANCE PROGRAMME 2021

ACTIVITIES JAN FEB MAC APR MEI JUN JUL OGOS SEPT OKT

1. Meeting (Coordinator and

committee)

2. Setting up the new policy

3. Briefing to employee.
Publish the policy within the
organization and publicize the
implementation of the program via
internal newsletters, the business's
internal website and any other
means of communication that
reaches employees in every sector
of the organization. List the various
services available through the
program and stress that
confidentiality is assured.

4. Recognition for performing

50
 employees.

5. Team building

6. Appointment times within the

human resources department to
speak individually with employees.

Table 6 – Gantt Chart Implementation of Employee Assesment Programme in CQ Breyers College

51
3.5 Implementation Framework

Figure 5 – Implementation Framework

52
Organisations use different ways of resolving absenteeism in the workplace.
Organisations, however, should at least implement an absenteeism monitoring system,
where appropriate, that allows for the employer to effectively monitor and record
attendance and late arrivals. They should adopt a consistent approach when dealing with
individual employees in keeping with company policy; alternatively organisations may
reward employees for attendance. Policies implemented must be effectively
communicated to all employees and should be consistent (Hewitt, 2002).

Because of a wide and complex of range causes of absenteeism, quick fix strategies,
which tend to be punitive by nature, will not have the required affect. Rather, absenteeism
should be managed by sound policies and the introduction of adequate employee
assistance programmes.

3.5.1 Management Of The Employee Assistance Programme

Advisory committee

The role of the advisory committee is to ensure that all relevant to players in the
organisation, such as top management, employees, supervisors and union members
contribute to the effective design and operation of the programme. The advisory
committee should be responsible for policy and strategy formulations, including advice on
the implementation of procedures.

Needs assessment

A needs assessment has to be made to ensure that programme planning and

development includes an assessment of the needs of the employee population and the
organisation for which they work. This assessment is intended to help the organisation
determine the most appropriate methods of providing Employee Assistance Programme
services.

53
This function will ensure that the right approach is followed in the design of the Employee
Assistance Programme in order to match those individuals with identified problems with a
cost-effective and appropriate level of care. Accurate assessment and appropriate
referrals should increase the likelihood of increased job performance and employee well
being. Competently conducted assessments and referrals will enhance the credibility of
the Employee Assistance Programme in the organisation.

Service delivery systems

A service delivery model should be selected that is consistent with organisational and
employee needs. The design and development of a service delivery system should
include the following: identification of resources, documentation regarding resources,
assessment and referral model, and a therapeutic approach.

Implementation plan

The programme implementation plan should establish the Employee Assistance

Programme as a distinct service within the organisation and describe fully the
responsibilities of the organisation and the Employee Assistance Programme committee
members.

Programme procedures

A clear-cut description of the programme’s scope of activity, combined with standardised

procedures for programme administration, operation, direct service, linkages and
evaluation, provides significant advantages for the programme and the organisation in
which it operates.

Record keeping

To protect the Employee Assistance Programme committee members, the organisation

must take the precautions necessary to answer legal challenges concerning the delivery
of services and maintain financial resources sufficient to ensure continuation of the
programme during and following litigation. Effective documentation is part of an effective
tool of managing absenteeism and general management. Effective documentation can

54
alert a manager in recognising a pattern of behaviour that becomes a problem over time
and the potential underlying factors that may be at play. It protects both the employee
and the manager, and allows for a solid base of objectives information.

Documentation should focus on voluntary and involuntary absenteeism, job performance

and observable behaviours, and not personal opinions. The documentation should not be
hearsay or speculation, i.e. incorporate subjective judgment or opinions. Documentation is
used primarily to detect patterns over time versus significant single events, hence most
documentation should remain with the manager/supervisor and not necessarily be part of
the personal records.

This is likely to occur with significant events, or if a pattern is detected. Documentation

should be specific and observable, and facts and behaviours should be verifiable (Mkhize,
Harper & Ass., 2003).

Crisis intervention

In order to maintain relevance and credibility, it is essential that the Employee Assistance
Programme responds effectively to crises and emergency situations. Timely intervention
may lessen or prevent long-term difficulties or dysfunction, both at an individual and
organisational level.

Short-term interventions

The nature of the workplace context offers the ideal opportunity for time-limited
intervention. In accordance with programme policy, there are occasions when it may be
more efficient and effective for the Employee Assistance Programme committee members
to provide short-term intervention services than to refer the employee to an outside
resource. Larger numbers of clients can be assisted if the Employee Assistance
Programme confines itself to short-term interventions, and this is also more cost-effective.
Short-term interventions reduce the potential risk of boundary violations between the
practitioner and the employee.

55
Monitoring

The Employee Assistance Programme is in a unique position to monitor and review the
progress of referrals and ensure quality and cost-effective treatment. Good monitoring will
assist in improving the image and credibility of the Employee Assistance Programme
amongst potential employees and management.

Follow-up

By providing ongoing follow-up services, the Employee Assistance Programme

demonstrates a commitment to the well being of the organisation and its employees.
Documentation of follow-up activities assists in evaluating the effectiveness of the
Employee Assistance Programme service.

Training of managers and supervisors

Ongoing training will develop the supervisors' ability to make appropriate referrals, and it
is important that supervisors understand that their role is to focus on employee job
performance, not the diagnoses of personal problems.

Promotion and marketing

An Employee Assistance Programme that is highly visible and presented in a positive light
should encourage members of the organisation to fully utilise the programme services.
Appropriate marketing and promotions of the programme will encourage utilisation of its
services, which ultimately impacts on the healthy functioning of the organisation.

Evaluation

Proper evaluation should ensure a cost-effective and relevant service to employers and
employees and their dependants. Measurable objectives allow the organisation to judge
the programme’s progress and usefulness and to identify the need for programme
modifications.

56
3.6 Change Management

Change management addresses the people side of change during the implementation of
the new employee assistance programme in CQ Breyer’s College. Creating a new
organization, designing new work processes, and implementing new technologies may
never see the employees full potential if the management did not bring the employee
along. That is because financial success depends on how thoroughly individuals in the
organization embrace the change. Similarly in applying the employee assistance
programme in order to reduce absenteeism,management had to take into consideration
the employees participation.

Change management comprises the processes, tools and techniques used to manage the
people side of change and achieve desired business outcomes. Ultimately, change
management focuses on how to help employees embrace, adopt and utilize a change in
their day-to-day work.

From a process perspective, change management is a set of steps a team member

follows on the programme—the strategy and plans focused on moving people through the
change.

According to Prosci’s research-based methodology includes three main phases:

● Preparing for change (where readiness assessments help guide the formulation of
a strategy)
● Managing change (where five change management plans integrate into the project
plan)
● Reinforcing change (where compliance audits and mechanisms deploy to solidify
the change)

On the other hand,change competency is a leader or manager’s ability to effectively lead

people through change. The notion of a leadership competency is universal, but what that
competency entails depends on a person’s relationship to change.

57
Change management is not just communication and training. It's not just managing
resistance. Effective change management follows a structured process and employs a
holistic set of tools to drive successful individual and organizational change.

Organizations do not change. People within the organizations change. It is the cumulative
impact of successful individual change that results in successful organizational change
being successful. If individuals do not make changes to their day-to-day work, an
organizational transformation effort will not deliver results.

In applying the employee assistance programme in this college, most probably there are
certain consequences if the management poorly managing the changes. Ignoring the
people side of change has a list of consequences such as:

● Productivity declines on a larger scale for a longer duration than necessary

● Managers are unwilling to devote time or resources needed to support the change
● The targeted employee do not show up to meetings
● Employee morale suffers and divisions between “us” and “them” begin to emerge
● Stress, confusion and fatigue increase
● Valued employees leave the organization
● Projects may also suffer from missed deadlines, budget overruns, rework and
even abandonment.

58
 CHAPTER 4

PROJECT BUDGET AND COSTING

4.1 Forecasting Expenses

Managing the costs of a project requires careful planning to avoid shortfalls that
can adversely affect payment schedules and damage stakeholder reputation. Cost
forecasting is a useful exercise in determining required expenditures at the various
payment stages of a project. Efficient management of project income is crucial in
making timely payments to the various stakeholders involved in the project.

An important aspect of cost forecasting is to understand the payment system for

the project based on the contractual provisions, and accordingly retrieve
information from the project schedule that will help map out the funds required
during the course of the project.

Cost estimating is the practice of forecasting the cost of completing a project with a
defined scope. It is the primary element of project cost management. The
approximate total project cost, called the cost estimate, is used to authorize a
project’s budget and manage its costs. In Breyers College,Gombak, before
implementing the employee assistance programme the management had
proposed an estimated cost of RM40 thousands. This is about 10 % from the total
decreased of amount loss due to absenteeism for two years. If this programme
can be implement successfully, the total annual revenue will increase estimated for
about 30%.

An accurate cost estimate like this is critical for deciding whether to take on a
project, for determining a project’s eventual scope, and for ensuring that projects
remain financially feasible and avoid cost overruns. These cost estimates are
typically revised and updated as the employee assistance programme’s scope
becomes more precise and as project risks are realized.

59
 The RM40 thousands cost estimation is a summation of all the costs involved in
successfully finishing the programme, from inception to completion that is from
April to October. These project costs can be categorized in a number of ways and
levels of detail, but the simplest classification divides costs into two main
categories: direct costs and indirect costs.

Direct costs are broadly classified as those directly associated with the employee
assistance programme. It includes programme team allowance, the costs of
resources to produce physical products, fuel for equipment, and money spent to
address any project-specific risks.

The other cost is indirect costs, on the other hand, cannot be associated with a
specific cost centre and are instead incurred by a number of projects by CQ
Breyers simultaneously, sometimes in varying amounts.

Beyond the broad classifications of direct and indirect costs, the employee
assistance programme expenses fall into more specific categories. Common
types of expenses include:

● Labour: The cost of human effort expended towards the programme objectives.

● Materials: The cost of resources needed to aid to programme.

● Equipment: The cost of buying and maintaining equipment used in the

programme work

● Services: The cost of external work such as facilitators for team building
programme.

● Software: Non-physical computer resources.

● Hardware: Physical computer resources.

● Facilities: The cost of renting or using specialized equipment, services, or

locations.

60
 ● Contingency costs: Costs added to the project budget to address specific risks.

All these forecasting expenses were taking into consideration as it is vital to

ensure the programme to be implemented smoothly. The estimated costs can be
distributed as below:

NO. MATTER COST ESTIMATION(RM)

1. LABOUR (ALLOWANCE) 5,000

2. MATERIALS 5,000

3. EQUIPMENT 5,000

4. SOFTWARE & HARDWARE 4,000

5. FACILITIES 15,000

6. CONTIGENCY 6,000

TOTAL EXPENSES 40,000

Table 7 : Cost Estimation

61
 Cost – Based Analysis estimates and totals up the equivalent money value of
the benefits and costs to the community of programme to establish whether they
are worthwhile. By reducing the positive and negative impacts of employee
assistance programme to their equivalent money value Cost-Based Analysis
determines whether on balance the project is worthwhile.

Cost- Based Analysis addresses the question of whether an organization like CQ

Breyer can expect a reasonable return for its investment of resources in a
program in terms of identifiable cost reduction. The evaluation estimates a ringgit
value for the benefits the Employee Assistance Programme provides to the
organization. Cost- Based Analysis measures the direct and indirect costs,
including program operational expenses and costs attributable to
the employee’s problem(s), in order to determine the total money expenditure for
implementation of the program as compared to the costs that would be incurred
without the programme. These two amounts are weighed to evaluate whether the
program, given its estimated cost, can be justified economically.” (Masi)

Direct costs related to industry include absenteeism, disability payments, early

pension payments, and supervisory time required for discipline. Indirect costs are
more difficult to measure and reports on such costs include increased accidents,
inefficiency of alcoholic workers, inefficiency of fellow workers, deterioration of
morale, added sick-pay, and replacing trained workers.

● Fixed Costs: RM40,000

● Material Costs: RM5,000
● Contingency Reserve: RM6,000
● Total Project Cost: RM51,000
● Management Reserve: RM60,000

62
 4.2 Cost savings for each initiative

Cost savings or reduction is the process used by companies to reduce their costs
and increase their profits. Depending on a company’s services or product, the
strategies can vary. Every decision in the product development process affects
cost. Companies typically launch a new product without focusing too much on
cost. For CQ Breyer College, in order to implement the Employee Assistance
Programme the cost savings is forecast as below :

NO MATTER COST COST

ESTIMATION(RM) SAVINGS(RM)

1. LABOUR (ALLOWANCE) 5,000 3,000 2,000

2. MATERIALS 5,000 2,000 3,000

3. EQUIPMENT 5,000 2,000 3,000

4. SOFTWARE & 4,000 - 4,000

HARDWARE

5. FACILITIES 15,000 10,000 5,000

6. CONTIGENCY 6,000 6,000 -

TOTAL EXPENSES 40,000 23,000 17,000

Table 8 : Cost Savings

63
 4.3 Other additional expenses

NO ITEM COST(RM)

1. TRAINER POOL RM3,000

Table 9 : Additional expenses

Companies can save money by implementing and maintaining an EAP program.

However, the respective fields are often challenged to prove their worth due to a
lack of data to substantiate this claim. The research studies discussed that more
“well-controlled longitudinal studies [are necessary] to investigate over time”
(Masi/Teems, 1983).

In addition, according to Gebhardt and Crump, the type and structure of programs
should be evaluated for their success and impact on different populations of
workers (olderyounger, male-female, blue collar-white collar, racial or ethnic group,
physically challenged)” (Ibid). If the systems are designed with forms to collect
demographic data necessary for future evaluations of this kind, the future of these
employee programs is assured, regardless of tempestuous economic climates.

64
4.4 Forecasted Business Improvement

A ‘forecast’ is a prediction of what is going to happen as a result of a given set of

circumstances. The dictionary meaning of ‘forecast’ is ‘prediction, provision against
future, calculation of probable events, foresight, provision’.

In business sense it is defined as ‘the calculation of probable events’. When

estimates of future conditions are made on a systematic basis the process is
referred to as forecasting and the figure or statement obtained is known as a
‘forecast’.

In CQ Breyers College case, employee absenteeism remains a challenging

problem that had been faced by the management, but it’s a normal cost of doing
business. Industry experts estimate that absenteeism can have an enormous cost,
with estimates ranging from 14.2 percent of total payroll to an annual RM3,600 per
hourly employee and RM2,650 per salaried employee.

That figure reflects the direct costs of paying employees, such as salary
continuation, benefits payout, and insurance premiums. The indirect costs of
absenteeism, which include paying overtime, hiring temporary help, or a reduction
in sales or profits due to lost productivity, can double or even triple that amount.

By implementing employee assistance programme, it is hopeful that the

absenteeism rates among employees in CQ Breyers College, Gombak will
decrease and the number of annual revenue increase in 30 %. According to Gallup
2020 latest meta-analysis shows that business units in the top one-fourth of
employee engagement are 21% more profitable, 17% more productive, have 10%
better customer ratings, experience 41% less absenteeism, and suffer 70% fewer
safety incidents compared with business units in the bottom fourth.

Employees who access employee assistance programme is hopefully by the end

of 2021 will report at least 52 percent fewer absences than these two years. It is

65
positively that this programme does not cost money instead it saves it.

The employee assistance programme can provide employees with the support
they need to come in every day, and also, to stay fully productive when they are at
work because their lives are more manageable and balanced. With the counseling
provided in the programme, employees can address and resolve their personal
issues that can affect their job performance and attendance – whether those
issues are related to the workplace or the employee’s personal life.

This programme has long be practiced in the United States and had been proven
to reduce absenteeism and other financial expenditures. For instance, Chestnut
Global Partners, LLC, conducted a study (“EAPs Can and DO Achieve Positive
Workplace Outcomes”) of more than 13,000 EAP users, and found that
absenteeism was 46% lower among people who participated in EAP services.
During the 30-day period before using EAP services, the participants missed an
average of 12.2 hours of work. During the 90 days after participating in EAP
services, the participants missed an average of 6.5 hours of work in 30 days.

Therefore, it is forecast that towards the end of 2021,by implementing this

programme, CQ Breyers College will at least can get back the increase of 30% in
their annual revenue.

66
 CHAPTER 5

CONCLUSION

Absence can be either planned (which includes study leave) or unplanned (as in
the case of sick leave). The law makes provision for employees to take a certain
number of day‟s sick leave per leave cycle, even though unscheduled leave
disrupts operational requirements.

Absenteeism was shown to be a behavioural episode caused by interpersonal,

intrapersonal and macro factors. As a result, the effects of absenteeism are felt on
both the micro and the macro levels, with disruptive and costly consequences. If
institutions want to address the scourge of absenteeism, it is imperative that they
have a programme for this, because the benefits will be felt byeveryone
concerned.

Absenteeism in organisations globally is a costly problem which is being neglected

by management. Not only it cause loss of profits annually but it also can bring a
company to close. In order for a programme to be an effective tool to reduce
absenteeism, it needs to be formulated according to a unique model that will suit
the organisation’s unique values, beliefs and needs.

Nevertheless, the employee assistance programme did fulfil the objectives of this
project as stated in Chapter 1 that is :
1. To set clear attendance policies with incentives for all employees by March
2021.
2. To Implement an Employee Assistance Programme by March 2021.
The most critical points in this project should be at the time to set up the team to
carry out the project. It is not easy to choose the team member to ensure that this
programme can be carry out successfully. Setting up a new attendance policy also
is not an easy task. The team has to work and had the management approval to

67
revisit the attendance policy to ensure that it is valid before publish it to the
employees.

Forecasting budget is also not a simple task when expenditure involved. Meetings
had to be carry out with the managements to ensure the budget is approved by the
college administrator.

The following have been identified by Beira (2008) and Anderson (2005) as being
impediments to the implementation of absenteeism management programmes:

 lack of tracking mechanisms (Beira, 2008:29);

 lack of support from management (Anderson, 2005:65);
 unfair absence management policies (Anderson, 2005:65) and
 inconsistency in tracking absence (Anderson, 2005:65).

From the above, it can be deduced that most programmes developed to manage
absenteeism fail not because of resistance by those whom they are intended
(employees) but mainly as a result of matters related to weaknesses within the
structures or systems of those who should benefit (employer) from such a
programme.

These issues could be related to favouritism in the application of rules and

policies, as well as the lack of systems to keep a record of attendance/absence.
Should the programme lack the support of management, it would undoubtedly not
succeed,because they would have to be its custodians.

In additional, the following conclusions were drawn from the findings of the
empirical study:

o Line managers have a clear understanding of the concept absenteeism

o Line managers will willingly assume responsibility for timeously identifying
o employees who tend to stay away from work without permission
o Absenteeism has a negative impact on the overall functioning of the
institution

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o Incentive programmes should be introduced to acknowledge good
attendance records
o Management training is an important factor in the management of
absenteeism
o Employees should be kept informed of trends and patterns in absenteeism
o A good absenteeism management programme should promote uniformity
and must be applied consistently
o A good absenteeism management programme is one that seeks to reduce
costs within the organization
o An absenteeism management programme could fail if proper policies and
procedures were not implemented

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5.2 RECOMMENDATIONS
The following recommendations are made to management as guidelines to
managing absenteeism at CQ Breyers College:

 There has to be a buy-in from the top management and an alignment of the
employee assistance programme to the organisational strategy. This will
encourage management to measure its effectiveness.

 An employee assistance programme must never be used as a punitive tool but to

be regarded as a resource.

 Managers will be assisted in coming up with a clear, agreed-upon and concise

definition of what constitutes absenteeism, in order to create uniformity.

 A specific programme aimed specifically at dealing with and addressing

absenteeism should be developed in consultation with all the relevant
stakeholders

 As part of the programme, a system should be put in place for identifying and
monitoring trends in absenteeism and patterns so as to flag them on a monthly
basis to the relevant management function.

 As part of the programme, there should be an absenteeism management policy

to give a specific indication of what line managers should do in addressing
absenteeism.
 Rules and standards that would form part of the programme should be
documented, disseminated within the institution and applied consistently and
fairly to avoid favoritism and inconsistency.

 A programme should include reward initiatives to boost staff morale and enhance
consistent attendance records.

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REFERENCES

Books
1. Berridge, J., Cooper, C.L. & Highley-Marchington, C. (1997). EAP and workplace
counseling. New York: John Wiley & Sons.

2. Cooper, D. et. al. (1997). Programmatic Intervention within the work context.
London: Prentice Hall.

3. Cunningham, G. (1994). Effective employee assistance programmes: a guide for

EAP counselors and managers. California: Sage Publications.

Journals

1. Absenteeism. [Sa]. [O]. Available: http://www.snap.in/search?query=Absenteeism

(Accessed 2021/01/08).

2. Absenteeism: Guidelines managing absenteeism. [SI:sn]. October 2007.

3. Absenteeism management. [Sa]. [O]. Available: www.knowledge resources.co.za

(Accessed 2021/01/03).

4. Absenteeism: negative impact on bottom line: employee wellness. 4th ed.

2006/2007[Sa] [O] : http://search.sabinet.co.za/WebZ/ (Accessed 2021/01/01).

5. Absenteeism trends in South African Companies. 2009. [O]. Available:

http://www.humancapitalreview.org/content/default.asp (Accessed 2021/02/22).

6. Anderson, B. 2009. The relationship between absenteeism and on-site

employersponsoredchildcare. Pretoria: University of South Africa. (MA
Dissertation).

7. Anderson, T. 2005. Employers lax on absence management. Employee Benefit

News.19(8):65-65.

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8. Babbie, E. 2005. The basics of social research. 3rd ed. Canada: Thomson
Wadsworth.

9. Babbie, E. 2001. The practice of social research. 9th ed. Belmont:

Wadsworth/ThomsonLearning.
10. Basic Conditions of Employment Act 75 of 1997 (Published in the Government
Gazette,(15999). Pretoria: (Government Printer).

11. Beira, B. 2008. Debunking Absenteeism. HR Highway, 2:29.

12. Avidan, I. S. (2003). International benchmarks for employee assistance

programmes (EAPs) South Africa to show the way. Services Seta, Vol 3 (1), 4-9.

13. Blum, D. & Kirchner, M. (1997). U.S. Customs Service Employee Assistance
Programme. Depression at work. Customs Today. USA.

14. Bridges, S. & Manford, K. (2001). Absenteeism in the UK: A comparison across
genders. The Manchester School, 69 (3), 276-284.

15. Buchanan, B. (1974). Building organisation commitment: the socialization of

managers in work organizations, Administrative Science Quarterly,19 (3),533-46.

16. CCH Human Resources Management Ideas &Trends. (www.ioma.com).

17. Clegg, C.W. (1983). Psychology of employee lateness, absence and turnover, a
methodological critique and an empirical study. Journal of Applied Psychology,
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