Absenteeism rates drop in '96
By Staff -- Industrial Distribution, 1/1/1998
Newton, MA.-- Employee absenteeism dropped to its lowest rate this decade in 1997, a major survey reports, and some distributors say allowing employees more flexible personal time is paying off.A recent survey of 451 human resources executives across the country by CCH Inc., of Riverwoods Ill., found a 16 percent drop in unscheduled days off compared to 1996. The company surveyed eight business segments including retail/wholesalers and manufacturers, and concludes the cost of absenteeism to firms has declined slightly.
Taking care of personal needs replaced illness as the top reason to miss work, while stress showed up as a greater factor. Employers, meanwhile, credit family-friendly programs such as flexible scheduling, providing on-site child care and leave for school functions with reducing absences.
"We do all of the above,'' says Scott Parrish, president of Parrish-Keith-Simmons, Inc. in Nashville. "Being a small company, we've allowed employees more flexibility than they might get in a large time-lock company. We'll allow time off during the day to take care of personal matters but they always pay it back. It's been a real good give and take situation.''
Steve Short, president of Updike Supply Co. in Dayton, Ohio, said low absenteeism reflects a positive work environment where employees are trusted and given a stake in decision-making. Before buying Updike Supply two years ago, Short worked for a larger company with nearly 400 employees where he says managers created adversarial, "burdensome'' leave policies. Some employees responded by playing "a game to see how much they could take off,'' he says.
When he took over Updike, Short put everyone on salary, which made it impossible for employees to have their pay docked if they went to a doctor's appointment, for example. He also shares sales and profitability results and requests employees' input to change product offerings.
"What might be of benefit is to make sure everyone understands the importance they play within the company,'' says Short. "If they do they won't take off for what I call casual absenteeism, because they realize the rest of the employees suffer when they're not there.''
The survey found absenteeism rates declined by 39 percent in mid-sized companies -- those with 100 to 4,999 employees -- but it increased by 16 percent in small firms.
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