What Is the Meaning Of Absenteeism Policy & Its Importance | HRMantra HR Software

What Is the Meaning Of Absenteeism Policy & Its Importance

5-7 minutes

Absenteeism policy refers to a detailed set of rules and regulations in the organization stating all about the employees'' attendance. It is structured to define the number of employees who are expected to be present in the office and at what time their shift starts.

An absence policy refers to a document received by an employee during the induction and which provides the structure an organization applies to attendance. This policy states the number of days an employee can absent themselves from the workplace.

It states how many leaves are applicable to an employee with pay and the procedure that needs to be followed in case the employee doesn''t adhere to it.

It keeps the company efficient and effective.

Going back to the history of this issue, till the beginning of the 20th century, there used to be a ""No work: No pay"" policy. You take a leave; you will not get paid for that day. Due to this, unions created an uproar, as a result of which they all reached a settlement where organizations granted various types of leaves, like the ""sick leave"".

Why Absenteeism Policy is Required

The absenteeism policy is rather significant as it not only helps outline the company culture and employee professionalism but also helps in maintaining discipline among employees. This is why this policy defines the expectations that a company has from its employees and builds a firm and airtight frame of work culture. Along with that, the absenteeism policy helps to maintain the discipline amongst employees and maximize the productivity of employees. HRs can now easily keep track of the attendance of the employees with their help.

• Maintain equity between the employees and the team.
• Increases individuality among a workforce.

Absenteeism Policy Document

An absenteeism policy document is handed over to the employee during the onboarding. This document clearly states exactly how the leaves are structured for him or her and what system he/she has to follow. This document contains:

• Creating the definition of absenteeism.
• Specifying the number of leaves the employee can take in a month.
• Valid reasons for leaves.
• Procedure to be followed to apply for a leave.
• Break time.
• Paid time off per year.
• Work from home day.
• Maternity and paternity leave.
• Public holidays.
• Rules to be applied if the employee reaches late to the office.
• Triggers along with its consequences of violating the rules regarding the same.

Absenteeism policies have established a sense of security and trust between the employee and the employer. This article by Gartner defines how the paid leave system impacts the employer brand. If, as an employer, you make the employees believe that they have this leverage of flexibility, they will be more devoted and productive to their teams.

Rate of Absence

Absence rate is defined as a mathematical metric in place to calculate the rate at which the employee is absent. This will assist the employer in creating a report through which they could audit the seriousness and dedication of the employee toward the work individually.

Computing absence rates helps in implementing better strategies in communication between the employer and the team members.

• Giving feedback to the employee.
• Policy revision, if necessary.
• Termination of the workforce that is not needed.

Calculation of the Absence Rate

The absence rate can be calculated using the formula:

Absence rate = (Number of employee days absent / Total available working days) * 100

From the above formula, we will get the percentage of the absence report for the employee.

Today, an absenteeism policy has become part and parcel of the organization. The employer instills trust amongst its employees, and in return, the employee delivers their best by being productive and dedicating themselves to their team. The absenteeism policy is one such example of that trust theory.

We are totally aware of all the absenteeism policy details at the moment: what it means, how important it is, what benefit it gives, what the rate of absence is, and what the impacts are stemming from the absenteeism policy in the organizations. It is more the likelihood of strong and structured organizations to stay longer in this very competitive industry.

Hope we helped you by enlightening your existing knowledge. We shall keep bringing in more for you. Till then keep reading, keep thinking and keep HRing!

Frequently Asked Questions (FAQs)

1. What is the rule of absenteeism?

Although many companies do not have general guidelines that are followed for the absenteeism of an employee, there exists a difference from one company to another regarding the set of rules and regulations regarding the same. Many companies choose unexcused 3-days'' time in a period of 90-days acceptable by the organization, whereas many others choose different ways for the same.

2. What to include in an absenteeism policy?

The absenteeism policy document should include:

• Number of leaves granted to the employee with respect to a particular time.
• Reasons which are calculated into the category of leave.
• Paid leaves information.
• Break time.
• Procedure to be followed and the methodology to be used for granting the leave.
• Public holidays.

This is general content that shall be contained in the policy document. Any company can modify the rules.

3. Why do you need an absenteeism policy?

An absenteeism policy requires the same important factors for the organization and the employee.

• It explains the structure of the organization.
• It sets the expectations of the employer for the employee.
• It maintains discipline amongst the employees.
• It helps to build up an atmosphere of trust, commitment, and transparency between the employee and the employer.
• The policy defines the clear instructions that are to be followed, and in case of any nuisance, what action will be taken for its violation is mentioned in the document.

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