What is the relationship between absenteeism and turnover?

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Volume 55, Issue 3, December 1999, Pages 358-374

https://doi.org/10.1006/jvbe.1999.1687Get rights and content

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Absenteeism is a pattern or habit of an employee missing work, often for no good reason.

Turnover is the number or percentage of an employer’s workforce that must be replaced due to the voluntary and involuntary separation of employees from employment. Voluntary turnover includes leaving employment to retire, illness, returning to school and better career opportunities, while involuntary turnover includes layoffs and terminations for poor performance or disciplinary problems.

Absenteeism and turnover vary by occupation, company and industry. Health care, emergency services, customer relations and manufacturing have high absentee rates — between 6 and 11 percent — reports the workforce solutions company Circadian. Rates are calculated as a percentage of an organization’s total workforce. You can slow absenteeism and turnover by understanding the causes and tracking the costs to your business.

Absenteeism

Scheduled absences occur when workers plan to use vacation days and paid time off. Unscheduled absences result in using sick days and family medical leave, or staying off the job because of disability or a workers’ compensation injury. Partial-shift absences occur when employees are late for work, leave early and take extended lunch or leisure breaks. All absences can be costly workplace disruptions over time.

Turnover

Turnover is the annual percentage of employees who voluntarily leave companies and must be replaced. Layoffs, firings and furloughs are company decisions and therefore not included in tracking turnover. A 20 percent turnover rate means that one in five employees has left a company within a year. High turnover often correlates with high absenteeism.

Causes

Personal illness is the reason workers give most often for unscheduled absences, according to the 2007 CCH Unscheduled Absences Survey. Other reasons are family issues and personal needs, followed by feelings of entitlement in taking time off and stress. Turnover is high in companies where employees generally feel undervalued, disrespected, ignored or unappreciated. Better job opportunities or higher pay are additional causes of turnover but not always the top reasons employees leave.

Costs

High absenteeism and turnover have indirect and financial costs. Productivity drops when companies are understaffed, as can the quality of goods and services. Employees must fill in for absent or departed co-workers on top of performing their own duties; overworked employees are prone to fatigue and illness, which can compound absenteeism. Also, customers become dissatisfied when businesses lack the number of workers needed to meet their demands.

Tracking

Tracking the number of absences, voluntary leaves and associated costs helps you determine if your absenteeism and turnover rates are too. Absenteeism rates are calculated by dividing the number of lost working days in a month, year or other time frame by the total number of workdays in that time period; multiply the result by 100 to get a percentage rate. Turnover rates are calculated by dividing the number of staff departures in a given time period by the average number of employees for that time period; multiply the result by 100 to get the percentage.

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The success of a company depends directly on the treatment given to its employees. O human capital it is an organization's most important asset. You high rates of absenteeism and turnover may be indicators of more serious problems in the organizational culture.

In this post, let's talk about the relationship between the two indicators and in which situations absenteeism can lead to dismissal and, consequently, an increase in turnover.

What is absenteeism?

Absenteeism is linked to rate of absences, delays and departures within the office hours stipulated in the contract. These absences, regardless of whether they are justified or not, count as absenteeism for the company.

When it occurs frequently, it affects productivity and brings losses. After all, the organization is paying for work that doesn't get done. This can affect project delivery and customer relationships.

What is turnover?

Also known as turnover, turnover and the replacement of company employees, either by decision of the employee or the employer.

The turnover rate calculation takes into account the number of dismissed employees and the total number of employees in the company, reaching a percentage index.

THE turnover it is a strong indicator of an organization's internal structure. It can give clues about the level of employee satisfaction.

Companies whose policies harm employees' physical or mental health tend to have high turnover rates.

>> HR Consultant UK created a digital book that addresses all about turnover and what are the main actions to reduce it! just you click here and you will access it right now ????

How can absenteeism lead to increased turnover?

In companies in general, regardless of size, it is common for HR and management to perceive a connection between absenteeism and turnover.

The constant absences of employees could be the first step towards voluntary dismissals soon, showing discontent with the working conditions and increasing the organization's turnover rate.

There are several factors that link an employee's absenteeism to their departure from the company:

• management failures;
• level of job satisfaction;
• quality of relationship with leadership and team;
• structuring of career plans in the company.

Let's detail each of these situations, in which the constant absences and tardiness actually lead to the dismissal of the employee.

When this behavior is observed in many employees, it's time to review some internal policies!

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Quality of recruitment and selection

Recruitment and selection processes must assess not only the technical skills of candidates, but also their behavioral trends.

When the professional is not able to develop the work with the proper quality, it is natural that he becomes discouraged and ends up leaving the organization.

The same happens with people who do not identify with the cultural fit. When they find it difficult to adapt to the work pace and to bond with colleagues, the employee ends up leaving the company more and starts looking for new opportunities in the market.

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Work conditions

At working conditions and expectations of employees should also be considered for evaluation of the absenteeism and turnover.

When the space is pleasant and offers the necessary structure for the good development of tasks, there is a great possibility that the employee will feel more comfortable and feel more productive.

Comfort in the workplace makes employees more likely to work in the organization for much longer.

Places that don't offer the necessary conditions tend to try higher absenteeism and turnover rates.

Career path

A very common problem in companies with high turnover rates is the lack of perspective of growth.

Without a well-structured career plan, employees lose motivation and start looking for other opportunities where they can be recognized for their dedication and grow.

In some cases, the increased absenteeism it occurs precisely because these employees are participating in selection processes in competitors. The resignation is just a matter of time.

Leadership

Another important factor that affects the absenteeism, and consequently the turnover, is the leadership style.

Managers with a more human approach, willing to listen and support employees, rely on teams present and engaged.

When the leader manages to strike a balance between discipline and understanding, this work ethic contaminates the team.

In this way, the leader generates a degree of engagement, productivity and well-being rarely observed in companies. The positive environment contributes a lot so that absenteeism is avoided and, consequently, the turnover.

relationship with the team

O relationship with colleagues they also impact the participation and attendance of employees in the company.

Working daily with people who are difficult to get along with ends everyone's enthusiasm and ends up stimulating a removal that could be avoided.

In some cases, the situation becomes so unbearable that the employee decides to find a job elsewhere.

Managers should be aware of this type of situation and seek help from HR to resolve coexistence issues, before the problem has more serious consequences.

Absenteeism not always will lead to shutdown.

The employee may be experiencing serious personal problems, such asfamily illness, divorce or the loss of a loved one. In these cases, the company can provide support and be available to help this employee as much as possible.

This posture increases the professional engagement and will be noticed by the entire team, showing the organization's recognition and appreciation in relation to its employees.

Identify the relationship between absenteeism and turnover, recognizing when one event will lead to another is an important strategy to defend the employer brand and avoid costs with terminations and new selection processes.

When realizing fconstant highs and delays, HR can conduct climate surveys to understand employee contentment and catch problems before they lead to a significant loss of talent.

How do you see the relationship between absenteeism and turnover? Leave a comment in the post about the subject or situations where you realized the employee was about to resign.

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