The Menace of Employee Absence in Indian Industry
Employees' absence from the workplace is a menace and a silent killer in the Indian industry. Apart from leaves, weekly offs, and holidays, it is the unplanned absence of employees that hurts organizations in many ways. The problem is serious, but sadly, it has not been viewed and addressed with equal gravity. Though the facility of leaves is highly valued by employees when it comes to their satisfaction level in terms of employer branding, it is very costly to the industry when coupled with abrupt absences, thus leaving the organization in the lurch.
Many studies have indicated that about ten percent of payroll costs are linked to unplanned absence globally. In India, it is about 15 to 20%. Cost leakage due to workforce mismanagement is three times higher than that globally. The reasons for absence have been repeatedly identified, but what is not done is how to tame this problem in a constructive way because many feel that negative reinforcement through punishment may not bring the desired results.
Mindset, Work Culture, and Ethics
Is it a question of mindset, work culture, or work ethics that does not allow employees to treat their unplanned absence as a sin or guilt committed towards self-development and national growth? When an employee, after having 52 weekly offs, about 10 holidays, and about 30 leaves—which comes to about three months off work in a year in the private sector—absents themselves from work in an unscheduled way, then the issue has to be taken up seriously by organizations to identify the underlying reasons as it lowers the morale of other sincere workforce. In government and PSUs, leaves are much more. Does it also indicate our mindset towards work?
In many Indian organizations, managers don’t appreciate the magnitude of this problem. Actually, this problem has been more or less accepted as if beyond their control, and they have learned to live with it. It needs greater focus because not only does it impact the financials of the company, but it also helps deteriorate the work culture and discipline of the workplace.
Addressing the Issue
What is required for management is to take up this issue on priority, invest in training frontline managers to manage absence carefully and effectively, initiate proactive measures to identify habitual absentees, conduct their case studies, analyze the issue, and enforce constructive discipline. Reforms are more difficult than the elimination of such persons, though it may be required at some point if they do not show signs of improvement.
Business Manager-HR magazine Nov. 14 cover story is on this theme.
Employees' absence from the workplace is a menace and a silent killer in the Indian industry. Apart from leaves, weekly offs, and holidays, it is the unplanned absence of employees that hurts organizations in many ways. The problem is serious, but sadly, it has not been viewed and addressed with equal gravity. Though the facility of leaves is highly valued by employees when it comes to their satisfaction level in terms of employer branding, it is very costly to the industry when coupled with abrupt absences, thus leaving the organization in the lurch.
Many studies have indicated that about ten percent of payroll costs are linked to unplanned absence globally. In India, it is about 15 to 20%. Cost leakage due to workforce mismanagement is three times higher than that globally. The reasons for absence have been repeatedly identified, but what is not done is how to tame this problem in a constructive way because many feel that negative reinforcement through punishment may not bring the desired results.
Mindset, Work Culture, and Ethics
Is it a question of mindset, work culture, or work ethics that does not allow employees to treat their unplanned absence as a sin or guilt committed towards self-development and national growth? When an employee, after having 52 weekly offs, about 10 holidays, and about 30 leaves—which comes to about three months off work in a year in the private sector—absents themselves from work in an unscheduled way, then the issue has to be taken up seriously by organizations to identify the underlying reasons as it lowers the morale of other sincere workforce. In government and PSUs, leaves are much more. Does it also indicate our mindset towards work?
In many Indian organizations, managers don’t appreciate the magnitude of this problem. Actually, this problem has been more or less accepted as if beyond their control, and they have learned to live with it. It needs greater focus because not only does it impact the financials of the company, but it also helps deteriorate the work culture and discipline of the workplace.
Addressing the Issue
What is required for management is to take up this issue on priority, invest in training frontline managers to manage absence carefully and effectively, initiate proactive measures to identify habitual absentees, conduct their case studies, analyze the issue, and enforce constructive discipline. Reforms are more difficult than the elimination of such persons, though it may be required at some point if they do not show signs of improvement.
Business Manager-HR magazine Nov. 14 cover story is on this theme.
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