Absence management is the process of tracking and minimising employee absences to maintain productivity. This involves using policies and tools to track types of employee leave, such as sick leave, holiday and other time off, to help minimise workplace disruption and maintain productivity.
Employees are more than just assets; they’re people. And whether due to illness, emergencies, appointments or simply some well-deserved time off, every employee can (and should) occasionally be excused from work. But while time off the clock is a necessity, unplanned absences have their consequences. When key players are unexpectedly missing, it can grind team productivity to a halt—disrupting processes and affecting the company’s bottom line. Even planned leave can create potential problems when managed incorrectly. To counter these dangers and better prepare for and manage employee absences, organisations rely on absence management solutions.
Absence management is the strategic process of tracking, understanding and right-sizing employee absences. Through a combination of policies, programmes and tools, businesses can ensure that employee leave, whether planned or unplanned, does not disrupt the daily operations. This not only helps in maintaining team productivity but also supports employees’ well-being by recognising and accommodating their need for personal time off. It is a delicate balance, one that needs to consider what distinguishes a legitimate absence from those that are frivolous, excessive or deceptive. That said, when managed effectively, it can lead to a healthier and more productive workplace.
Businesses exist to generate money, so it’s probably not much of a revelation that essentially everything that occurs within a business setting has an associated currency amount. Training and outfitting employees, paying for office space and utilities, providing insurance etc. each represent expenses that must be constantly offset by the work being completed by internal teams. Absences temporarily remove individual team members from the equation, leading to lost productivity and wasted operational costs.
This is a significant problem; it is estimated that employee absenteeism accounts for billions of dollars in lost productivity in the US every year. More specifically, the dangers of mismanaged employee leave fall into at least one of two categories:
- Financial issues
Absences, even those that only last for a short time, can directly affect an organisation’s bottom line. The associated costs of finding a replacement and the impact on the substitute’s potentially reduced productivity add up quickly. Without absence management, the company is often forced to react rather than proactively anticipate and plan for these scenarios, leading to disruptions and financial setbacks. - Cultural issues
Money may be a major concern when it comes to employee absences, but it is not the only area that is affected. When employees miss work, others often have to cover for them—working overtime, taking on additional responsibilities—and this leads to decreased efficiency and employee engagement. If left unchecked, this can even come to define the company culture, creating resentment and discontent among employees. Over time, this can dampen employee engagement and cause increased burnout. Lengthy or recurring absences might even signal underlying organisational issues like workplace bullying or low morale.
Thankfully, the implementation of absence management software to track and monitor employee data can help reduce the number of unplanned absences while also helping organisations better govern planned and unplanned leave in ways that benefit employees, protect company culture and ensure the continued productivity of the workforce.
Although absence management may provide benefits for any organisation that works with employees, some companies are more in need of a dedicated absence management policy than others. Here are several indicators to be aware of when considering whether absence management may be worth pursuing:
- Decrease productivity
Too many unplanned absences can result in a significant decrease in productivity, while too few absences or too little planned leave leads to overworked employees who become unproductive. Both situations are marked by declining productivity and are clear signs that the business could benefit from absence management.
- Poor quality of work
Much like productivity, work quality declines when absences become too frequent or too rare. If tasks are being performed poorly, it could be related to emotional stress or personal commitments being unattended to. Absence management can help identify these issues.
- Increased employee churn
A rigid approach to absences and time off can lead to dissatisfaction and high employee turnover rates. If left unaddressed, this can create a negative company culture, resulting in a lack of resources and a tarnished reputation, which in turn may hurt recruitment rates. If an organisation is having difficulty finding and holding onto top-quality hires, it may be a result of an ineffective approach to absence management.
For an organisation to establish an effective approach to absence management, they must first create an absence management policy. This is a structured set of guidelines that outlines how a company will handle planned and unplanned employee absences. This policy not only ensures consistency and fairness but also helps the organisation comply with legal requirements. Crafting a well-thought-out absence management policy involves understanding various complexities and following specific steps. Below, we explore the fundamental steps to creating an effective absence management policy:
Clearly define absences
Clearly defining and communicating expectations around attendance is key. Employees must know when they are expected to be at work to function fully as a part of the team. The policy should also articulate how much time off is available to employees throughout the year, offering clarity and helping to prevent misuse. Be clear in quantifying leave and identifying what counts as planned and unplanned absences.Determine how absences will be tracked
Efficient and accurate tracking of absences is crucial. While some employers may still rely on manual processes (like spreadsheets), most have begun adopting automated solutions to simplify the task while improving accuracy. Choosing the right tools for an organisation can ease administrative burdens and make for easier, more-efficient absence management.Understand employment laws
Employees rights are protected by law, and the right to take leave is no exception. That said, each state approaches this right differently, establishing regulatory laws and compliance requirements for paid, unpaid and extended absences. These laws can carry strict penalties, so it is always recommended that a business be familiar with the legal requirements when establishing an absence management policy.Establish procedures
The absence management policy should explicitly outline the procedures surrounding absences. Who should employees notify when they are going to be absent, and when? How will managers address patterns of unexcused tardiness? What is the process for approving or denying time off requests? Clear procedures help in maintaining order and ensuring that all parties involved know what to expect.
Effective absence management is not just about having policies in place; it is about implementing those policies in a way that serves both the company’s and the employees’ best interests. Striking this balance requires adherence to best practices that encourage communication, flexibility and empathy. Here is a look at some of the best practices for absence management that can lead to a more harmonious and productive workplace:
Can an employee come to the office and put in a full day’s work while fighting a cold? Absolutely… but they shouldn’t. The same can be said for employees who are suffering from burnout or who need to take the occasional half day to fulfil personal responsibilities. Unhealthy or exhausted employees produce less, deliver lower-quality work, and some may even spread colds to their coworkers. As such, encouraging employees to avoid taking days off is counterproductive.
Employees need to know that their physical and mental health is important, and that employee-leave policies exist to provide them with the option to miss work when they need to. By presenting employee leave in a positive light, leaders can also demonstrate their commitment to employee well-being, leading to a healthier, happier and more engaged workforce.
There may be a lot of causes behind absenteeism and unplanned employee leave, and not all of them stem from employees trying to take advantage of employer generosity. Simple misunderstandings related to employee-leave policies can lead to increased difficulty in absence management, which is why it’s so important to effectively communicate expectations.
At the same time, it’s recommended that managers and employees be fully trained in company absence management policies. This creates a workforce where everyone understands how their presence or absence impacts company finances and culture, and how their employee leave is monitored.
Sometimes it’s not the work itself; it’s the coming into work at a specific time that can be problematic. Some employees who do not feel up to the task of commuting to the office may feel perfectly capable of telecommuting, and those who have scheduling issues might still be willing to put in the full eight-hour workday—provided that those eight hours aren’t restricted to the traditional 9 to 5. Thankfully, modern technology allows for more work flexibility than was once possible.
Flexibility in work arrangements recognises the diverse needs and lifestyles of employees. By offering remote work and flexible hours, companies can reduce stress and enhance the overall work-life balance. This not only boosts morale but also often leads to increased productivity and creativity, to say nothing of reduced absenteeism.
Policies and programmes are only as effective as the people in charge of implementing them, and this is particularly true in terms of absence management. Effective absence management hinges on skilled managers who understand how to apply these policies consistently, accurately and compassionately, while also remaining firmly compliant with national regulations.
Providing targeted training equips managers with the tools to handle various absence scenarios, recognise troubling patterns and offer support for employees. Such training enhances empathy, consistency and efficiency in handling absences, creating a more positive workplace experience for everyone involved.
Upon returning after an extended absence, it can be difficult for employees to readjust their mindsets and get back into the flow of daily work. They may not be fully up to date on current goals or other developments, and—in the case of those who were recently recuperating from illness—they might not yet be healthy enough for a full return to their previous duties. Establishing a return-to-work interview policy can help ensure that everything is in order before the employee dives back into the grind.
A return-to-work interview does not have to be overly formal, but it should be structured enough to allow for discussion regarding the cause of the absence, how the employee feels about returning to work, and whether any reasonable adjustments or additional support may be necessary to facilitate a healthy and seamless transition. This interview should help establish expectations for both the employee and the manager moving forward.
Leveraging technology for absence management through both enhanced tracking capabilities and self-service tools creates an efficient and empowering environment. Modern tracking tools minimise human error, ease the administrative burden and provide insights to address many of the underlying issues that can lead to absenteeism.
These capabilities enable data-driven decisions and contribute to a more streamlined approach to managing absences. Simultaneously, self-service tools foster a sense of autonomy and responsibility among employees by allowing them to request and manage their leave without having to rely on others. This not only reduces administrative overhead but also enhances transparency and alignment between employee time off and company needs. The combination of these tools creates a comprehensive, technology-driven approach that serves both organisational goals and employee well-being.
Without the right tools, the complexities of tracking unplanned absences, leave histories, regulatory compliance and tardiness patterns can be overwhelming. Still, absence management software solutions are not just about easing the administrative burden but also about providing valuable insights to enhance overall organisational productivity and employee well-being.
Key capabilities of absence management software include:
- Viewing absence and leave histories
This functionality provides a comprehensive view of each employee’s absence and leave history, enabling an understanding of individual patterns that can be instrumental in personalising management strategies. - Running reports
Compliance with laws like the UK's Employment Rights Act is essential. Absence management software can run detailed reports to ensure that both planned and unplanned leave are in line with legal requirements. - Comparing absentee rates to industry benchmarks
Understanding how an organisation’s absentee rates compare to industry standards is vital for assessing overall efficiency and competitiveness. Absence management software can provide comparative insights that facilitate informed decision-making and strategic planning. - Automating and streamlining leave request processes
Modern absence management tools often come with self-service options, enabling employees to request and manage their leave on their own. This fosters a sense of responsibility and autonomy among employees, while simultaneously reducing administrative overhead. - Integrating with other HR tools
Many absence management systems are designed to integrate seamlessly with other HR tools. This ensures that all information related to an employee’s time off is easily accessible and aligned with other HR functions, creating a more cohesive management approach.
Effective management of employee absences requires a strategic, thoughtful approach that balances compliance, engagement and productivity. But how can organisations simplify this intricate process while ensuring a best-in-class employee experience? ServiceNow Employee Journey Management provides a comprehensive solution.
Designed to transform the way organisations handle various employee transitions, including onboarding, role transfer or taking a leave of absence, Employee Journey Management empowers HR teams with intelligent workflows that span the enterprise while empowering employees with comprehensive self-service options for requesting and managing leave requests. Built on the powerful, industry-defining Now Platform®, ServiceNow Employee Journey Management helps you ensure that your people have the best absence management support, so that they can put their best effort toward their day-to-day work.
See how the right tools can optimise your business’ approach to absence management; contact ServiceNow today!