What is Absenteeism?

Absenteeism isn’t just an occasional inconvenience — it’s a costly challenge that has drained billions from the global economy.

The yearly cost of employee absenteeism is 225.8 billion dollars, which comes out to $1,685 per employee. (Centers for Disease Control and Prevention)

Over the years, absenteeism rates skyrocketed from 3.2% in 2021 to over 6% in 2022, according to the data from Workplace Options. This sharp rise highlights a growing concern for organizations, as frequent absences not only strain resources but also signal deeper issues like employee burnout, mental health struggles, and declining engagement. Ignoring these signals can lead to higher turnover rates and declining team performance.

As absenteeism rates fluctuate — often peaking on Mondays and Fridays — employers must adopt proactive strategies to foster a more engaged workforce and mitigate the risks associated with frequent absences.

What is absenteeism?

Absenteeism refers to an employee’s intentional or habitual absence from work without a valid reason or prior notification. It’s more than just the occasional sick day — it’s a pattern that can disrupt workflows, lower team morale, and hurt overall productivity. 

On average, over 114,000 part-time or full-time employees skip out on work on any given workday. (U.S. Bureau of Labor Statistics)

Absenteeism in the workplace can be a significant challenge for organizations to address, as it puts pressure on absentee’s peers and supervisors to cover duties or shifts with little to no warning. This often leads to increased stress, burnout, and even resentment among employees who consistently show up, ultimately impacting team dynamics and efficiency.

Absenteeism differs from excused absences, which include planned and approved time off like vacations, paid time off (PTO), holidays, medical leave, doctor’s appointments, or unexpected events, such as disruptions in child or eldercare, bereavement, or sudden injuries.

Types of absenteeism

Not all employee absences fit into the same category. Therefore, here is a breakdown of the three types of absenteeism:

Authorized and planned absences

Authorized and planned absences follow company policies and include scheduled time off such as vacations, personal days, holidays, medical leave, or pre-approved appointments. These absences are communicated in advance, allowing teams and managers to adjust workloads and expectations accordingly. Effective planning ensures projects continue to progress smoothly.

Unauthorized but genuine absences

These absences are unplanned but stem from legitimate reasons, like sudden illness, family emergencies, or unforeseen events. While these situations are often unavoidable, failing to notify the employer in a timely manner can cause workflow challenges and affect team dynamics.

Chronic absenteeism

Chronic absenteeism refers to the consistent pattern of an employee being absent from work without a valid reason or prior notice. This pattern can signal deeper issues such as burnout, disengagement, personal struggles, or workplace dissatisfaction. Over time, chronic absenteeism can disrupt team productivity, strain workplace relationships, and negatively impact overall performance.

What causes absenteeism?

Employees miss work due to various reasons, many of which might be legitimate reasons, while others could signal deeper issues. 

Workplace bullying or harassment

Workplace bullying and harassment remain significant issues in the UK. A 2020 survey revealed that 23% of British workers had experienced bullying at work, while 25% felt excluded or isolated.

Bullying and harassment can show up in many forms — from denying training or promotion opportunities to unfair treatment, spreading rumors, or deliberately undermining a colleague’s work and confidence. These behaviors not only harm individuals but also damage team morale and workplace culture.

Disengaged employees

Employees who are not engaged or who are actively disengaged cost the world $8.8 trillion in lost productivity, according to Gallup’s State of the Global Workplace: 2023 Report. When workers lose a real employee connection, they adopt a ‘tit-for-tat’ mindset. This results in quiet quitting, bare minimum monday and ‘acting as per wage’ attitude.

Related: How to engage employees in the workplace

Burnout, stress and low morale

Unrealistic deadlines, heavy workloads, long working hours, toxic work culture, loss of employee connection and lack of recognition for their work lead to poor employee well-being. Over time, this drains motivation, reduces productivity, and lowers morale, causing employees to disengage, withdraw, and take more frequent absences.

Nearly 12 billion workdays are lost every year around the world due to depression and anxiety. (World Health Organization)

Loneliness

Employees who feel isolated may struggle with motivation and productivity, leading them to take more sick days or avoid work altogether. Over time, this disconnect can create a cycle of increased absences and deeper disengagement.

According to Cigna, the economic toll of stress-related absenteeism due to loneliness in U.S. workplaces reaches around $154 billion annually, highlighting personal and organizational costs.

Childcare and eldercare

Balancing work with family responsibilities can be challenging. Unexpected situations, like a sick child or a caregiver canceling at the last minute, can force employees to take unplanned time off. Without adequate support or flexibility from employers, employees are compelled to prioritize family needs over work, which leads to absent days.

Illness & injuries

When employees face health challenges, whether a short-term illness, chronic condition, or sudden injury, their ability to work is naturally impacted. Frequent absences due to health issues can also lead to stress about falling behind, which may further affect recovery and overall well-being.

Job hunting

Employees often feel disengaged, undervalued, or stuck in their roles, prompting them to search for new opportunities during work hours. They take unscheduled time off to attend interviews or update resumes. This leads to absenteeism as they claim to be ill or use other excuses.

Nearly 28% of job seekers spend about three hours a week job hunting while at work, with many updating their resumes and even taking phone interviews during office hours. (Zety)

Impact of absenteeism on the workplace

Absenteeism can have a severe impact on the workplace.

Cost of lost productivity

Many employers are searching for solutions to reduce absenteeism in the workplace. An ADP Institute Research report found that 66% of leaders in large companies are concerned with absenteeism, and 54% report that absenteeism negatively impacts employee productivity. 

A study by the European Foundation for the Improvement of Living and Working Conditions found that workplace absenteeism could reach around 2.5% of GDP in Europe — totaling around $470 billion across the EU. That’s more than double the absenteeism costs reported in the U.S., highlighting a significant economic impact.

While technology has accelerated workforce productivity and enabled organizations of all sizes to produce more in less time, many workers have hit a wall. Absenteeism not only directly impacts the absent employee’s performance but also creates a costly ripple effect inhibiting that of the absentee’s peers, teams, supervisors, and the organization at large.

68% of employees in 2022 said they were not fully engaged at work — and their disengagement is majorly impacting employee productivity. (Gallup)

How can HR and business leaders reduce absenteeism?

It is critical for managers and HR leaders to recognize the patterns of absenteeism. By addressing these signs early on, managers can identify and resolve the root causes or take disciplinary action against the employee for lost productivity.

Here are a few practical strategies to reduce absenteeism:

Actively listen to your employees

If employees call out sick regularly or arrive late to work without any solid explanation,  have honest and open communication. Actively listen to understand their work-life balance needs and build a culture where employees feel heard and valued.

Building a culture in which employees feel heard is a culture that fosters job satisfaction, higher productivity and engagement, and lower employee turnover.

In fact, a recent listening study found:

Even with the best strategies and tools in place, reducing absenteeism requires direct and open communication with employees. HR and business leaders should proactively engage with their teams to uncover the reasons for frequent absences. Conduct AI-powered employee engagement surveys, regular check-ins, or open feedback sessions to create a safe space for employees to share their concerns.

Pro tip: Use Simpplr’s employee listening tool to unearth hidden employee sentiment that traditional surveys often miss — in real-time. 

Address childcare-care challenges

Childcare responsibilities can be a major cause of absenteeism, especially when employees struggle to find reliable care or face unexpected disruptions. According to the Washington Post, more than 100,000 Americans missed work last month due to childcare problems. Unexpected school closures, sick children, or gaps in childcare arrangements can leave working parents with no choice but to stay home.

Providing work-from-home options, flexible work schedules, childcare subsidies, or partnering with local daycare centers can ease the burden of working parents.

Related: Discover the benefits of remote working and working from home

Implement combined paid time off (PTO)

A CareerBuilder survey found that 40% of employees called in sick when they weren’t actually ill, especially on Fridays and Mondays. 

To address this challenge, introduce a combined PTO policy — where vacation, personal, and sick days are grouped into a single account — giving employees greater control over their time off.  This flexibility encourages employees to plan their absences honestly, reducing the need for fake sick days. However, it also requires balance. The same survey revealed that 33% of employees work while sick to save PTO for vacations, potentially spreading illness at work. Encourage a culture where taking time off for health is supported, reducing both absenteeism and presenteeism.

Promote safer commutes

Long travel times, unreliable public transportation, or safety concerns discourage employees from coming to work regularly. Offer transportation benefits like shuttle services, subsidized transit passes, or safe parking facilities to make commuting more convenient and stress-free.

You can also offer an emergency ride home service for employees who use public transportation or carpool, providing reassurance that they have a reliable way to get home in case of an emergency.

Prioritize health and well-being

As leaders, the goal is to empower employees to make the most of their time without risking burnout. Creating a supportive work environment where employees feel comfortable discussing stress and mental health is key. Introduce wellness programs, offer access to mental health resources, and encourage a healthy work-life balance by setting realistic expectations and promoting regular breaks.

Even small changes in expectations can significantly improve employee well-being and boost overall productivity.

Related: Learn the warning signs of employee burnout

Recognize and reward employees for high attendance rates

Acknowledging employees with strong attendance records can boost morale and encourage consistency. Recognitions like “Employee of the Month,” attendance bonuses and shoutouts on company-wide platforms or intranet can motivate employees to improve their attendance. Celebrating reliability reinforces positive behavior and fosters a strong company culture where people want to stay.

Tip: Simpplr’s Recognition and Rewards make it easy to build a culture where employees feel valued, appreciated and rewarded for their efforts. Within one centralized platform, you can:

• Customize awards and badges 
• Publicly celebrate employee efforts, achievements and milestones through the company feed 
• Empower remote, in-person or hybrid employees to give shoutouts, receive recognition, and celebrate wins together

Related: 5 free employee appreciation social media templates

How Simpplr can help

Employees occasionally miss work — it happens. But when absences become frequent and unplanned, it may signal deeper issues beyond a simple sick day.

Simpplr’s AI-powered intranet platform helps organizations proactively address absenteeism by fostering stronger connections, improving communication, and creating a more engaging workplace culture. Listen, understand and lead your people better with AI-driven insights with Simpplr’s employee listening solution. 

With real-time employee sentiment checks, recognition programs, and well-being resources, Simpplr empowers employees to stay informed, feel valued, and remain connected — reducing disengagement and absenteeism.

Result? Increased productivity, higher employee satisfaction, and a competitive edge in attracting and retaining top talent — all contributing to a healthier bottom line.

Get a live demo to see how Simpplr can reduce absenteeism by improving employee engagement and retention at your company.