A hot topic of debate in the U.S. Senate, which will likely filter down to the state and municipal level is whether a law should be passed requiring employers with at least 15 workers to provide 7 paid sick days per year. The reason that this bill was introduced is because sponsors say that 50% of private sector employees have no sick time. As a result they come to work sick (and potentially contagious) so to not lose income. This condition, called presenteeism, is at the heart of the debate because employees who just show up that are ill or have family members who are ill and in need of their attention, are less productive and/or often spread illnesses across the workplace exacerbating the problem.
But what about companies that have paid sick time policies and benefits in place? Does having a paid sick time policy reduce or increase unscheduled absenteeism? Absenteeism is on the rise according to the 16th annual CCH Unscheduled Absence Survey by CCH, a leading provider of human resources and employment law information and services and a part of Wolters Kluwer Law & Business (hr.cch.com). The 2006 CCH survey found that the rate of unscheduled absenteeism climbed to its highest level since 1999, costing larger companies hundreds of thousands of dollars per year in direct payroll costs, and even more when lost productivity, morale and temporary labor costs are considered.
What continues to be of most concern to employers is that almost two out of three employees who fail to show up for work aren’t physically ill, according to the CCH 2006 survey. The survey found that personal illness accounts for only 35 percent of unscheduled absences, while 65 percent of absences are due to other reasons, including family issues (24 percent), personal needs (18 percent), stress (12 percent) and entitlement mentality (11 percent).
The effect of low morale continues to be reflected across the board in the 2006 CCH Unscheduled Absence Survey. The survey found that employee morale can affect a company's absenteeism rate, with organizations with Good/Very Good morale experiencing a 2.2 percent rate of unscheduled absences while those reporting Poor/Fair morale had a rate of 2.9 percent.
What is apparent to HR administrators is that a paid sick time policy is the tip of the iceberg as they grapple with reducing costly unscheduled absenteeism. Additional work/life balance programs, such as flex time, telecommuting, job sharing, community service, child/elder care, or wellness programs have shown to be effective in keeping employees on the job and better motivated. What is clear is that morale starts at the top floor corner office. When top management actions demonstrate a genuine concern for employee welfare and promote a cultural awareness and support of work/life balance then worker morale is higher. If on the other hand top management is viewed as aloof and paying only lip service to such trifles and don't back it up, then morale suffers and absenteeism increases accordingly.
There is no one simple answer but a trend for success is emerging. Employers who have paid sick time policies in place and have implemented work/life balance programs rate highest on employee morale and lowest on unscheduled absenteeism. Another trend slowly gaining attention and having a positive impact on reducing unscheduled absenteeism is to compensate workers for unused sick time at the end of the year. Usually the compensation takes the form of reimbursement to employees for wellness related expenses such as gym memberships, yoga classes, etc.
For more information go to: http://hr.cch.com/press/releases/absenteeism/102506a.asp