Reduce Employee Absenteeism in the Workplace with Earned Wage Access

Missing a work shift here and there is to be expected. But outside of an occasional sick day, recurring absences of team members can really cause negative effects for companies. When an employee continuously misses their shifts, it not only can be costly for employers, but it can also put a damper on the team spirit and might even stir up some resentment among colleagues. The good news is that employers have options to tackle absenteeism and keep things running smoothly.

What is Absenteeism?

Workplace absenteeism refers to the frequent and unexcused absence of employees from their scheduled work duties. Excluding the occasional sick day or personal emergency, absenteeism is a pattern of regularly skipping work for a range of reasons, such as personal matters, low morale, stress, or simply a lack of enjoyment in their job. This can have significant consequences for both employees and the company. When workers are consistently absent, it can lead to disruptions in workflow, decreased productivity, and strained team dynamics. 

The Price of Absenteeism

Absenteeism is often overlooked as a primary reason for a company’s decrease in profits, but it is an incredibly costly factor that needs to be addressed in order for a company to thrive to its full potential. Beyond the immediate loss of productivity, the price of absenteeism may include overtime pay for staff, temporary replacements, and potential recruitment and training of new personnel. 

According to a report from TeamSense, the yearly cost of employee absenteeism comes to $1,685 per employee. And with that, nearly 50% of overtime is used to compensate for those employee absences. 

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How to Reduce Absenteeism in the Workplace

Reducing absenteeism in the workplace requires a proactive approach that addresses both individual and organizational needs. Employers often strive to address absenteeism through supportive policies, open communication, and initiatives that foster a positive and engaging workplace culture.

Offering supportive work arrangements and benefits can play a large role in retaining a productive and engaged workforce. Wellness programs, flexible work schedules or remote options, and recognition programs can go a long way with employees. 

Earned Wage Access (EWA) is a powerful tool that companies can use to reduce absenteeism in the workplace. By providing employees with the option to access a portion of their earned wages before the traditional payday, EWA offers financial flexibility and addresses immediate monetary needs. This can alleviate financial stressors that often contribute to unplanned absences, fostering a more stable and motivated workforce.

Although absenteeism may be inevitable at times, employers can mitigate its impact on their companies. Identifying the root causes of employee absenteeism and implementing beneficial measures like Earned Wage Access (EWA) can establish a balanced and positive workplace environment. This approach addresses underlying issues and fosters a mutually beneficial scenario for both employees and the business.