Is 10% Daily Employee Absence a Red Flag? Seeking Insights from Fellow HRs

Dear Seniors,

I'm an HR professional working for an engineering-based design sector in which the company's revenue is dependent on the productive work hours spent by the employees. While reviewing attendance reports, I analyzed that on average, a minimum of 25 employees are on leave each day, which actually accounts for 10% of the total team strength. Is this a cause for concern? I would appreciate your insights to gain a better perspective.

Thanks in advance,
Divya

Clarification on Absenteeism

We need clarification about your post. In the heading, you have written about absenteeism of the employees. Generally, the word "absenteeism" is associated with unauthorized absence. On the contrary, in the main body of your post, you have written that "on average, min. 25 guys are on leave each day." However, leave is authorized absence. What is wrong if the employees take leave as per the procedure? Absence on account of leave, duly authorized by seniors, should always be acceptable. Going further, leave is a legal provision for the employees. If one person out of 10 is on leave, then nothing is wrong per se.

You should get alarmed only if the absence is unauthorized. It really upsets the apple cart of the operations. Because of someone's unauthorized absence, the leave of someone who is in dire need does not get sanctioned. To attend to pressing domestic or personal commitments, that person also absents. This further aggravates the problem.

Analysis of Absenteeism

Therefore, you need to do the analysis of the absenteeism of the workers. Earlier, I have given an exhaustive reply on the subject. Click the following link to refer to it:

Calculation of Authorized Absence

You have 250 employees. For every 20 working days, a worker is authorized to get a day's leave. Therefore, each worker is authorized to get 15 days earned leave per annum. There are 52 Sundays and 10 closed holidays per year. If you deduct these days, it leaves out 303 working days per year. Therefore, per day authorized absence could be for (250 x 15)/303 = 3,750/303 = 12.37 employees. Therefore, even if 12-13 workers are on authorized leave per day, it should not bother you. However, your average absenteeism per day is 25. Therefore, 12-13 workers are on unauthorized absence per day. Going further, workers could be going on leave depending on the requirement. During summer vacation and festival times, more people ask for leave. In contrast, other months are laid back.

Hidden Challenge

There could be a hidden challenge in your post. Your company's operations must have been planned based on the authorized and unauthorized absence that generally takes place per day (which is 25 per day). What if on some day, there are fewer absentees, say only 5? On that day, do you have surplus manpower? If yes, then how are these people utilized? Is there under-utilization because of excess manpower at hand? Is some unwanted work created just to fill their time? You need to check on this count also.

For further queries, feel free to contact me.

Thanks,

Dinesh Divekar

Understanding Employee Absence

Absence refers to unauthorizedly staying away from work without prior permission or sanction of leave from the competent authority. This absence may be temporary in some cases due to genuine or bonafide reasons such as self-illness or hospitalization of close relatives, etc. In this age of mobile, email, and WhatsApp, the employee can at least send a message. However, in some cases, due to better prospects, strained relationships, or interest in earning through other means, some employees may abstain frequently and for long periods.

In any case, the manager should try to contact the employee on the same day or within 1 or 2 days to find out the reason for the absence. This could be like a courtesy call to show the employer's concern for the employee. If an employee can't be reached, even in 1 week, a show-cause notice can be issued, calling for an explanation. This depends on the standing orders of the company. Some companies even issue a chargesheet, initiating disciplinary action.

The matter has to be dealt with cautiously as sometimes good employees may start disliking the management if their absence is due to genuine reasons.

Handling Repeated Absences

For the first instance of absence for a short time, counseling has to be done. If the employee continues to behave in the same way, they should be warned. For the 2nd and 3rd instances, besides a written warning, their salary should be cut based on the principle of "No work - No pay." The carrot and stick principle should be applied. Some companies initiate disciplinary action, issue a chargesheet, and follow up with punishment after due domestic inquiry proceedings.

Should you need further information, please do not hesitate to contact me.

Regards, Ravikumar

[Email Removed For Privacy Reasons]

I worked as an HR Manager in a senior position for 30 years in a large public sector undertaking.