Summer festival sickies, or something more sensitive? Mauro Barsi on how employers should fix absenteeism

Support for mental health, as well as medication education, are some steps employers might take to reduce absenteeism, Mauro Barsi of the EMA says. Photo / Lightfieldstudios, 123RF

KEY FACTS:

• New Zealand staff sick days hit a record high in 2023, according to a Southern Cross Health Insurance and BusinessNZ study.
• Most workers by law are entitled to 10 days sick leave a year to care for themselves, partners, children or other dependants.
• Nurses have been reluctant to test for Covid and take time off due to fears of running out of sick leave, an Auckland nurse said last month.

Summer festival sickies, or a more sensitive subject? Absenteeism takes many shapes – and can be a significant productivity issue.

For small business owners, the impacts are felt deeply, as they often have smaller teams and fewer resources to absorb disruptions.

A single employee’s unexpected absence can trigger a domino effect, affecting not just operations but the financial health and morale of the entire organisation.

While absenteeism is a common issue in workplaces of all sizes, its consequences are more acute for small businesses where every team member plays a pivotal role in keeping things running smoothly.

At the EMA, our member AdviceLine fields numerous calls on the issue from both small and large businesses, so we know what a problem it can be. For tricky cases we supply step-by-step guides and specialist legal consultation.

The impact of absenteeism on a small business is more than just a missing person on the tools. It’s about the ripple effect that causes an imbalance in workload, increases the risk of errors, and leads to potential revenue loss.

Imagine you’re gearing up for a busy day, perhaps in an important new contract, and one of your key employees calls in sick. The void created by their absence can create a chain reaction – someone else must pick up the slack, tasks get delayed, and your team’s productivity is compromised.

Small businesses often operate on tight margins, and unplanned absences can result in costly temporary replacements or overtime pay for other staff.

The underlying causes of absenteeism are varied.

Health issues, family obligations, burnout, medication side effects, or even a lack of engagement with the job can contribute to an employee’s decision to stay home. In some cases, absenteeism might be the result of underlying workplace issues such as poor management, conflicts with colleagues, or an unreasonably heavy workload.

So, what can small business owners do to address absenteeism and minimise its negative impact?

Proactive strategies are key. One of the most effective ways to combat absenteeism is by cultivating a culture of wellness within the workplace. Wellness programmes that focus on employee health – whether physical, mental, or emotional – can help reduce the frequency of sick days.

Additionally, small business owners should consider offering flexible working arrangements. This kind of support not only reduces the likelihood of unplanned absenteeism but also demonstrates a commitment to employee wellbeing, which can foster loyalty and improve morale.

Another solution is medication education.

Some employees may not fully understand the side effects of the medications they are taking and how these can impact their ability to perform at work.

By educating employees about the potential effects of their medications and encouraging open communication, business owners can help employees make informed decisions that reduce absenteeism.

Mental health is another crucial area that deserves attention.

By creating an environment where employees feel comfortable seeking help, business owners can address issues like burnout before they result in longer periods of absenteeism.

Small businesses often run on tight margins and absenteeism can have big repercussions. Photo / 123RF

For businesses that are struggling to keep track of absenteeism, the solution may lie in creating clear policies and using tools that help monitor attendance.

If absenteeism becomes a chronic issue, business owners should work with employees to develop a clear plan for improvement, which may include setting attendance expectations or offering additional support where needed.

It’s also important for employers to communicate openly with their team. An open dialogue about absenteeism can help identify potential issues early on and allow for proactive intervention.

In some cases, absenteeism can be more difficult to manage, especially if it is a recurring issue with a single employee.

In such cases, employers may need to have more direct conversations with the employee to understand the root cause of their absences and assess whether adjustments can be made to support their attendance.

Offering reasonable accommodations, such as adjusting work schedules or providing temporary duties, may help employees continue to perform their jobs while dealing with personal challenges.

However, when absenteeism becomes a pattern, and it significantly disrupts the business, employers should take a more structured approach.

This may include initiating an absenteeism management programme, where a series of formal steps are taken to address the issue, such as offering warnings or even terminating employment if there is no improvement.

The key is to ensure that any actions taken are fair, reasonable, and in line with legal obligations.

By taking a proactive approach, offering support, and fostering a positive work environment, small business owners can minimise the impact of absenteeism, strengthen their teams, and ensure their business remains resilient in the face of unforeseen challenges.