Employee Absenteeism – Meaning

Employee Absenteeism, in simple terms, refers to failure of an

employee to report for duty when he is scheduled to work. It is an
unauthorized absence from the workplace

Employee Absenteeism refers to unauthorised absence of the

employee from his job.
In India the problem of absenteeism is greater than other countries.
When the employee takes time off, on a scheduled working day with
permission, it is authorised absence. When he remains absent without
permission or informing, it is wilful absence without leave.
In these days when the needs of the country require greater emphasis
upon increase of productivity and the economic and rational
utilisation of time and materials at our disposal, it is necessary to
minimise absenteeism to the maximum possible extent.
Absenteeism is higher among women workers and among workers
who live away from the place of work.

Employee Absenteeism – Defined by Indian Factories Act, 1948

and Webster’s Dictionary
The regularity and stability of the labour force plays an important role
in the prosperity and development of an industrial unit. But an
unfortunate feature in the industrial life of our country is the high rate
of labour turnover and absenteeism. Statistical data have proved that
the loss on account of absenteeism is more than of industrial disputes
or any other problem. Thus, the problem of absenteeism is more
serious threat than any other industrial problem.
Absenteeism means a condition where a employee keeps himself away
from the work without any notice. Statistical data of absenteeism in
our country are compiled and submitted on the basis of definition of
absenteeism as given in Indian Factories Act, 1948. According to this
Act, “Absence is the failure of an employee to report for work on duty
when he is scheduled to work on his duty. An employee is to be
considered as scheduled to work when the employer has work
available” for him and the employee is aware of it.
Absenteeism at the operative level is a crucial problem in some
industries. Absenteeism is unauthorized absence from workplace.
According to Webster’s Dictionary, “absenteeism is the practice or
habit of being an absentee and an absentee is one who habitually stays
away.”
Absenteeism is universal phenomenon. The rate of absenteeism varies
from month to month, from shift to shift, and from day to day.
An employee is to be treated as absent for purpose of these
absenteeism statistics even when he does not turn-up for work after
obtaining prior permission. Any employee who reports for duty even
for a part of the day or shift should not be counted among absentees.
The statistics relate to only voluntary absenteeism defined as absence
due to reasons which are personal to the individuals concerned. As
such, absence of an employee on account of strike or lockout or lay off,
that is involuntary absence, is not considered as absence for purpose
of these absenteeism statistics.
ADVERTISEMENTS:

Absenteeism is measured in the form of rate of absenteeism. The rate

of absenteeism is a percentage of mandays lost due to Absenteeism
during a particular period to the total of corresponding mandays.

Employee Absenteeism – 4 Peculiar Features

On the basis of micro studies undertaken in different parts of the
country these are some of the peculiar features of employee
absenteeism:
(a) The rate of absenteeism is the lowest on pay day; it increases
considerably on the days following the payment of wages to bonus.
The level of absenteeism is comparatively high immediately after pay
day; when workers either feels like having a good time or in some
other cases return home to their village to make purchases for the
family or to meet them.
ADVERTISEMENTS:
The incidence of absenteeism, both before and after a Holiday, has
also been found to be higher than that on normal days.
(b) The per cent of absenteeism is generally higher in the night shifts
than in the day shifts. This is so because workers in the night shift
experience greater discomfort to uneasiness in the course of their work
then they do during day time.
(c) The percentage of absenteeism is much higher in coal and mining
industries than in organized industries. This high percentage of
absenteeism is due to the engagement of labourers in the fields,
marriages or festivals, which together are estimated to account for
about 75 per cent of the cases of withdrawals, drunkenness, relaxation
or sickness.
(d) Absenteeism in India is seasonal in character. It is the highest
during March-April-May, when land has to be prepared for monsoon
sowing and also in the harvest season (Sept.-Oct.) when the rate goes
as high as 40 per cent.

Employee Absenteeism – 3 Major Factors Affecting:

Organizational Factors, Social Factors and Personal Factors
ADVERTISEMENTS:

The three major factors affecting employees and workers absenteeism

are discussed as below:
I. Organizational Factors:
1. Dullness, monotony and mundaneness of work cause an employee
to lose interest in work. It makes him physically and mentally tired.
2. Leniency towards absenteeism causes high rate of absenteeism.
3. Appointment of temporary or causal worker leads to high
absenteeism.
ADVERTISEMENTS:

4. Militant attitudes of trade unions also cause high absenteeism as

workers become frustrated because of their attitude.
5. Ineffective and defective selection and placement procedure fuel
absenteeism.
6. Heavy workload leads to excessive fatigue and industrial accidents.
7. Poor illumination, ventilation, lack of housing, canteen refreshment,
dangerous work methods, lack of safety devices cause low morale
among employees. Dissatisfaction leads to dislike of work.
Absenteeism and turnover become obvious consequences.
8. Poor and bossy supervisors cause discontentment, unrest, conflict
and tension causing absenteeism.
9. Overstaffing, irregular flow of production, ineffective use of skills,
inadequate training, inadequate incentive system, ineffective
grievance procedure, low morale and lack of job satisfaction trigger
absenteeism.
10. Lower pay is one of the reasons for absenteeism since workers
absent themselves to supplement their income by working elsewhere.
II. Social Factors:
1. Migratory nature of labour force in India does not engender a sense
of belonging to the workplace. Hence there is frequent absence.
2. Inadequate housing and transport facilities keep workers away from
work.
3. Lack of hospital facilities for treatment also leads to absenteeism.
4. Seasonal causes like cultivation season, marriage season,
amusement, religious festivals, lead to absenteeism.
III. Personal Factors:
1. The rate of absence is high in the case of unskilled and young
workers because of their personal problems.
2. Women workers are more prone to absenteeism because of their
personal and family problems.
3. Alcoholic and drug addicts show higher tendency of absenteeism.
4. Indebtedness of workers causes absenteeism.
5. Inferiority complex, maladjustment, job dissatisfaction, neglect by
family members, etc., cause workers to lose interest in the job. This
triggers absenteeism.

Employee Absenteeism – Top 4 Types: Authorised

and Unauthorised Absenteeism, Willful Absenteeism &
Absenteeism Caused by Circumstances Beyond One’s Control
Absenteeism is of four types viz.:
(i) Authorised absenteeism,
(ii) Unauthorised absenteeism,
(iii) Willful absenteeism, and
(iv) Caused by circumstances beyond one’s control.
Type # 1. Authorised Absenteeism:
If an employee absents himself/ herself from work by taking
permission from his superior and applying for leave, such absenteeism
is called authorised absenteeism.
Type # 2. Unauthorised Absenteeism:
If an employee absents himself from work without informing or taking
permission and without applying for leave, such absenteeism is called
unauthorised absenteeism.
Type # 3. Willful Absenteeism:
If an employee absents himself from duty willfully, such absenteeism
is called willful absenteeism.
Type # 4. Absenteeism Caused by Circumstances Beyond One’s
Control:
If an employee absents himself from duty owing to the circumstances
beyond his control like involvement in accidents or sudden sickness,
such absenteeism is called absenteeism caused by circumstances
beyond one’s control.

Employee Absenteeism – 5 Main Categories of Absentees

Classified by K.N. Vaid: Entrepreneurs, Status Seekers,
Epicureans, Family-Oriented and Sick and Old
K.N. Vaid classifies chronic absentees into five categories viz.:
(i) Entrepreneurs
(ii) Status seekers
(iii) Epicureans
(iv) Family-oriented, and
(v) The Sick and die Old.
(i) Entrepreneurs – This class of absentees considers that their jobs
are very small for their total interest and personal goals. They engage
themselves in other social and economic activities to fulfill their goals.
(ii) The Status Seekers – This type of absentees enjoys or perceives a
higher ascribed social status and is keen on maintaining it.
(iii) The Epicureans – This class of absentees does not like to take up
the jobs which demand initiative, responsibility, discipline and
discomfort. They wish to have money, power, and status but are
unwilling to work for their achievement.
(iv) Family-Oriented – This type of absentees is often identified with
the family activities.
(v) The Sick and Old – This category of absentees is mostly unhealthy,
with a weak constitution or old people.

Employee Absenteeism – Investigation Procedure

A regular investigation procedure for absence without leave must be
instituted. Each individual case must be handled with firmness and
caution. Personnel Department can play a great part in reducing ab-
senteeism.
1. When an employee who was absent without leave on a working day,
returns to work, the time office must mark the time of his arrival in his
time card or register and send him to the Personnel Office.
2. Personnel Assistant must take his statement and take him to the
Personnel Manager, along with his personal file, for further investi-
gation.
3. Personnel Manager will question him about the reasons for his
absence. If the reasons are satisfactory, leave can be granted and time
card must be marked accordingly and initialled.
4. If absence is without sufficient or satisfactory reasons, the worker
must be orally warned and sent to work. Written warning can be given
for repeated absence without leave. Habitual absenteeism may lead to
charge sheet. It is important, therefore, for the Personnel Office to
keep proper records of each case.
5. When sickness is pleaded as an excuse for the absence, the
employee must be asked to produce medical certificate, or the com-
pany’s medical officer’s opinion must be taken.
6. After investigation and taking statements, the Personnel Office
must initial the time card and send the worker to his department for
work.
7. The employee must not be penalised for the time taken for
investigation at the Personnel Office.
8. Foreman and Department Head concerned must be informed at all
stages of such enquiry.
9. When an employee absents himself without leave for over a week, a
registered acknowledgement due letter must be sent to his last known
address, calling for an explanation and informing him that if he does
not report for work within a reasonable period from the date of the
letter, his absence will be treated as resignation.
There must be such a provision in the Standing Orders also. His reply
or the letter which returns undelivered must be filed in the employee’s
folder.
10. If he does not return within the specified period or produce a
medical certificate or satisfactory evidence for absence, his services
can be terminated after an ex-party enquiry and a letter of termination
must be sent to him indicating that his services are terminated for
absence without leave under provisions of the Standing Orders.

Employee Absenteeism – How to Calculate Employee

Absenteeism Rate?
Absenteeism can be calculated with the help of the following formula-

Absenteeism Rate = Number of Mandays lost / Number of Mandays

Scheduled to Work x 100

Absenteeism rate can be calculated for different employees and for

different time periods like month and year.

The frequency rate reflects the incidence of absence and is usually

expressed as the number of separate absence in a given period,
irrespective of length of absences. The frequency rate represents the
average number of absences per worker in a given period.
Frequency Rate = Total number of times in which the leave was
availed / Total number of Mondays scheduled to work x 100

Severity Rate:
Severity rate is the average length of time lost per absence and is
calculated by using the following formula-

Severity Rate = Total number of days absent during a period / Total

number of times absent during that period x 100

A high severity rate indicates that the employee is absent for longer
durations each time. High frequency and severity rates indicate that
the employee is absent more frequently and for longer durations each
time resulting in high absenteeism even in absolute terms.

Employee Absenteeism – 10 Major Causes: Maladjustment with

Factory Conditions, Social and Religious Ceremonies,
Unsatisfactory Housing Condition and a Few Others
The employee absenteeism is caused due to the following reasons:
Cause # 1. Maladjustment with Factory Conditions:
As employee continues to live in the city, urban life becomes
distasteful to him because of the insanitary conditions prevailing
there. He finds himself caught within great factory walls. He is by
heavy traffic, by stranger’s speaking, different languages, he is
confused by different religions to cases, he is subject to strict discipline
and is ordered by complete strangers to do the things which he cannot
understand. As a result he is under constant strain which causes him
serious strain to impair his efficiency. All these factors tend to
persuade him to maintain his contacts with his village.
Cause # 2. Social and Religious Ceremonies:
Social and religious functions divert employee from work to social
activities.
In large number of cases, the proportion of absenteeism due to
sickness, accident or maternity is not a high as it is due to other
causes, including social and religious causes.
Absenteeism is high during local festivals, irrespective of whether the
employees are from rural areas or not.
Cause # 3. Unsatisfactory Housing Condition:
The employees who come to towns usually find that they are not
wanted and they swell the number of unemployed and casual workers.
They also experience housing difficulties. Health conditions are natu-
rally bad leading to high morbidity and consequent ill-health. They,
therefore, make frequent visits to their village homes to get relief from
such insanitary and unhealthy surroundings.
Cause # 4. Industrial Fatigue:
Low wages compel a worker to seek some part time job to earn some
side income. But this often results in constant Fatigue, which compels
him to remain absent for the next day and if fatigue affects him
seriously, his absence may continue for a quite some time.
Cause # 5. Unhealthy Working Conditions:
Intolerable working conditions exist in factories, heat or moisture;
noise and vibrations in the factory, bad lighting condition dust, fumes
and ever crowding and all there affect the workers’ health causing him
to remain absent for a long time.
Cause # 6. Absence of Adequate Welfare Facilities:
The National Commission on Labour observes “The statutory welfare
amenities have not been properly and adequately provided. In several
cases, particularly in medium and small sized units, the standards are
distinctly poor.”
The studies made by some State in respect of the different components
of welfare include sanitation, washing and bathing facilities, first aid
application ambulance room, drinking water, canteen, rest room and
creches which serene the general impression that compliance with
statutory welfare provision is half-hearted to inadequate. Fed up with
the absence of basic facilities the worker often migrates to his rural
frame.
Cause # 7. Alcoholism:
The habit of alcoholism among workers is a significant cause of
absenteeism which is high in the first week of each month. When
workers, receive their wages. They rush to liquor shops and drink to
forget their immediate worries. Once indulged in drink, the habit
continues. Hangover the next day leads to absenteeism.
Cause # 8. Indebtedness:
Most of the workers suffer from a high degree of indebtedness. Such
workers absent themselves or even resign to escape the money
lenders. As a result absenteeism is high.
Cause # 9. Improper to Unrealistic Personnel Policies:
In most cases unskilled, untrained and inexperience workers are
rejected who fail to cope with and adapt themselves to their jobs and
to their industrial environment to nepotism are rampant. These
factors generate a frustration in the minds of works which results in
low efficiency, low productivity and un-formable employee-employer
relationship, which in turn lead to long periods of absenteeism.
Cause # 10. Inadequate Leave Facilities:
Negligence on the part of the employer to provide adequate leave
facilities compels, the workers fall back on E.S.I. Leave.
Under E.S.I. return they are entitled to 56 days leave in a year on half-
pay. Instead of going without pay the workers avail themselves of this
E.S.I. facility.

Employee Absenteeism – 10 Adverse Effects

Absenteeism is a serious problem of the industrial world of today. It
affects both the employees and the employers adversely.
Important effects of absenteeism may be summarised as follows:
1. Absenteeism stops the entire process of production. It stops the
machines and hampers smooth flow of work.
2. As a result of loss of production, the cost of production increases. It
results in the reduced margin of profits of the industry.
3. The rate of production and the productivity remains low. The
production targets are upset.
4. As a result of increase in the cost of production, the selling price of
the commodity is to be increased. So the customers have to pay more
for the commodity.
5. Frequent absenteeism of the workers decreases their working
efficiency also. It also reduces their interest in the work.
6. Due to absenteeism of regular workers, the industry has to depend
upon casual or sub-standard employees, it causes many problems in
itself such as-breakdown of machinery, low quality of production,
wastages of raw materials etc.
7. As a result of all these factors, the enterprise gets itself unable to
meet the demand of market in full and it causes delay in the supply to
the valuable customers.
8. Frequent absenteeism of workers effects the economy of the
workers also. It reduces their incomes.
9. High rate of absenteeism upsets personnel planning policy of an
enterprise.
10. High rate of absenteeism is also a reason of indiscipline among the
workers.
Thus it may concluded that the effects of absenteeism are multifarious.
It affects all the workers, the employees, the government, the
shareholders and the economy of the nation.

Employee Absenteeism – 10 Major Consequences of Higher

Degree of Employee Absenteeism
The higher employee absenteeism is caused due to:
1. Higher degree of absenteeism hinders the process of
implementation of HR planning.
2. When the nature of work is interdependent, absenteeism affects
regular flow of work.
3. Loss of man days results in loss of output.
4. Manpower shortage leads to failure in attaining production targets
which in turn causes failure in attaining sales targets which adversely
impact the bottom line.
5. Absence of workers causes the plant to remain idle. This results in
underutilization of machine capacity.
6. Manpower shortage triggered by absenteeism hinders the delivery
schedule of enterprises. This makes them vulnerable to face litigation,
penalty and loss of orders from clients.
7. Available workers need to be overloaded and overtime wages need
to be paid to complete the task. This leads to higher financial
commitment on the part of the enterprise.
8. Delayed delivery, delayed execution of orders lead to loss of
customers and thereby the company loses its reputation.
9. The precious time of the employer is wasted in initiating
disciplinary action on unauthorized absentees.
10. Absentee employees lose pay and get indebted to private money
lenders.

Employee Absenteeism – How to Minimize Employee

Absenteeism? (Measures for Control)
As regards measures to be adopted to remedy the situation.
The encyclopaedia of social sciences suggests the following measures
to reduce the rate of absenteeism:
1. Absenteeism is probably a natural human reaction to the routine of
modern factory life. There is a maladjustment between man’s instincts
and desires and the regular working habits that are imposed upon
him. The routine can be relaxed or modified by grant of leave with pay,
by shortening or redistributing scheduled hours, by having employees
living nearer to their places of work, and by adjusting the physical
condition of the plant, especially noise and ventilation.
2. The personnel management should encourage notification,
especially in cases of sickness when the duration of absences is likely
to belong.
3. In case of personnel and family circumstances, e.g., illness of
children in the case of married women employees which make
absences unavoidable, leave should be granted liberally.
4. Regularly in attendance can be encouraged to some extent by the
offer of a bonus and other pecuniary inducements.
5. To reduce unavoidable absence due to sickness and industrial
accidents, programmes of industrial hygiene and safety should by,
strengthened.
It should be noted no single measure can be effective in controlling
absenteeism; but a skillful combination of various measures would
definitely lead to the desired results.
These measures are:
1. Provision of Healthful and Hygienic Working Conditions:
In India, where the climate is warm and most of the works involves
manual labour, it is essential that workers should be provided with
proper and healthy working conditions. The facilities of drinking
water, canteens, lavatories, rest rooms, lighting and ventilation, need
to be improved. Where anyone of these facilities is not available, it
should be provided. All these help in keeping the employee cheerful
and increase productivity and the efficiency of operations throughout
the plant.
2. Provision of Reasonable Wages and Allowances and Job Security for
Workers:
Some of the wages of an employee determine his as well as his family’s
standard of living, this single factor is important for him than any
other. The management should, therefore, pay reasonable wages and
allowances, taking into account the capacity of the industry to pay, the
level of wages prevailing in different units of the same industry in the
same area in neighbouring areas, the productivity of labour and the
general effect of rising wages in neighbouring industries.
The allowances that may be paid to workers should include old age
allowance, length-of-service allowance, position allowance, special job
allowance, good attendance allowance, transportation allowance and
housing allowance, so that the worker may have and know security of
employment.
3. Adoption of a Well Defined Recruitment Procedure:
The selection of employees on the basis of communal, linguistic and
family consideration should be discouraged or avoided. The
management should look for aptitude and ability in the prospective
employees and should not easily yield to pressure or personal likes and
dislikes. Application blanks should invariably be used for a
preliminary selection and as tools for interviews.
The personnel officer should play a more effective role as a co-
ordinator of information provided that he has acquired job knowledge
in the function of selection. Employers also should take into account
the fact that selection should be for employees’ development; their
reliance, therefore, on intermediaries for the recruitment of employees
should be entirely done away with.
4. Motivation of Workers – Welfare and Social Measures:
The management should recognise the needs of workers and offer
them adequate and cheap housing facilities, free or subsidised food,
free medical aid and transportation facilities to and for their residence,
free educational facilities for their children, and other monetary and
nonmonetary benefits.
Their genuine difficulties—for example, their need of money at the
time of marriage, death, family illness and disablement— should be
recognised by the management and it should try to help them in this
regard. As for social security measures such as the provision of
provident fund, E.S.I, facilities, gratuity and pension, all these need to
be improved, so that workers may have a sense of belonging.
5. Safety and Accident Prevention:
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence,
over-confidence, carelessness, vanity, etc., and such material factors as
unguarded machinery and explosives, defective equipment and hand
tools. Job satisfaction and cordial relations between the workers and
the employers would help eliminate most of the personal factors.
As for the hazards to which industrial workers are exposed,
supervisors should ensure that proper operational procedures and
safety instructions are followed in the course of work. Work groups
should be taught safe methods of operation. In addition to consistent
and timely safety instructions, written instructions (manual) in the
regional language of the area should be given to the work force.
6. Liberal Grant or Leave:
The management’s strict attitude in granting leave and holidays, even
when the need for them is genuine, tempts workers to go on E.S.I,
leave, for under this scheme, they can have 56 days in a year on half
day. An effective way of dealing with absenteeism is to liberalise leave
rules.
7. Improved Communication and Prompt Redressal of Grievances:
Since a majority of the workers are illiterate, bulletins and written
notices, journals and booklets are not understood by them. Therefore,
timely illustrations and instructions, meetings and counseling, are
called for. Written communication becomes meaningful only when
workers can read and understand. As regards notice boards, too many
notices should be avoided; only the essential ones should be put on the
board, which should be placed near the entrance, inside the canteen
and in areas which are frequently visited.
8. Cordial Relations between Supervisors and Workers:
Cordial relations between the supervisor and the workers are essential
for, without them, discipline cannot be maintained and productivity
cannot be increased. One of the consequences of unhealthy relations
between supervisors and subordinates is absenteeism. Therefore,
supervisors should be given a proper training in this field to create an
atmosphere in which willing cooperation exists between them and the
work force, and workers would freely discuss their problems with their
supervisors.
9. Development of Worker’s Education:
The system of workers education should be so designed as to take into
account their educational needs as individuals for their personal
evaluation; as operatives for their efficiency and advancement; as
citizens for a happy integrated life in the community; as members of a
trade union for the protection of their interests.
This educational programme, according to the National Commission
on Labour, should be to make a worker:
(a) Aware of his rights and obligations;
(b) A responsible, committed and disciplined operative;
(c) Understand the basic economic and technical aspects of the
industry and the plant where he is employed so that he may take an
intelligent interest in its affairs;
(d) Lead a calm, clean and health life, based on a firm ethical
foundation;
(e) Understand the organisation and functioning of a trade union and
develop qualities of leadership, loyalty and devotion to it, work so that
he may intelligently participate in its affairs;
(f) A responsible and alert citizen.
(x) Other Measures.
(a) A supervisor should not be regarded as another worker and should
be given definite authority to take action in all cases of absenteeism.
(b) There should be clear and definite rules and regulations on
authorised and unauthorised leave.
(c) A proper record of each worker’s attendance should be maintained
on a special daily attendance card.
(d) The rules and regulations relating to attendance must be explained
to workers.
The employer, the employee and the State have a definite role of play.
If each performs it properly and harmoniously, the problems of
inefficiency, undesired conflict, low productivity, dissatisfaction on the
part of workers and their low morale resulting in frequent absenteeism
can be largely eliminated. Industrial relations in a democracy should
be based on an integrated approach, aiming at individual satisfaction
and group satisfaction, and achievements of the goals of the
community and of the nation as a whole.