10 Adverse Impacts to an Organisation as a Result of Absenteeism

10 Adverse Impacts to an Organisation as a Result of Absenteeism


Studies show that on any given day 3% to 6% of any company’s workforce is absent due to unscheduled issues or disability claims, therefore it is a very serious matter presently and hence it is important to raise awareness on this issue. Absenteeism is a habitual pattern of absence from a duty or obligation at the workplace.  Many of the causes of absenteeism such as sickness and personal issues are genuine. However, absenteeism may also be an indicator of poor work environment, lack of commitment towards their jobs and a violation of the contract between the employer and employee. If this form of absence is neglected and becomes excessive it may cause adverse impacts on the organisation s profitability.

Adverse Impacts of absenteeism

  1.  High absenteeism may indicate poor morale and will in turn hinder performance.
  2. It will be a big challenge to sustain your company’s productivity levels when a lot of unscheduled absence occurs. Also when an employee is absent, another worker who is not prepared to do that particular task takes over, this results is lower productivity in the replaced employee as well.
  3. Unscheduled absenteeism may result in having to pay another employee overtime to get the required work completed, therefore higher costs for the organisation.
  4. Since most absences cannot be predicted some companies maintain a higher staffing level in anticipation. Studies have shown that certain companies overstaff by 10% to 20%. Hence, this is an unnecessary added cost to the organisation.
  5. Some companies tend to hire temporary workers to cover the work when an employee is not present at work. Therefore, the salaries that will have to be paid to these temporary workers will be an extra cost the company will have to incur.
  6. When there is absenteeism the HR department is obligated to find a temporary replacement to fill the position for that particular day, or they may have to work with the head of the department to reassign an existing employee to fill the position. This leads to high HR costs.
  7. When the employee who is absent has a specialized job role in a certain area there could be a workflow deadlock, as he/she will be the only one who has the expertise to complete the particular projects.
  8. Especially when the organisation is one that provides services absenteeism could lead to dissatisfied customers. For example; if a customer speaks to a particular agent regarding an issue with the service on one day, and that agent is absent the next day the customer wants to make an inquiry about that particular matter, it may lead to frustration and dissatisfaction.
  9. Other employees may tend to be very stressed due to the additional workloads and deadlines they will have deal with, as well as a feeling of victimization.
  10. There is a possibility for loss of business since the profitability of the business may decline 


It is important to take appropriate action to shrink these high absenteeism rates so that you can prevent the adverse impacts to the organisation. There are several measures that could be taken;

  • Firstly it is essential to develop a leave policy bearing in mind the organisation’s objectives.
  • Next it is important for managers and supervisors to regularly monitor attendance of all employees and actually find out what the reason for absenteeism is by speaking to them.
  • Practicing punctuality within the organisation is a must; however it may also effective to provide them with suitable rewards.
  • Another very important step that an organisation can take is to train managers and supervisors to identify the real reason behind absenteeism and provide appropriate counseling sessions or health care programs to those who require them in order to reduce stress or other ailments and keep them motivated.
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  • Last modified on Monday, 07 December 2015 10:45
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