Employee absenteeism is a universal challenge that impacts productivity, retention, workplace morale, and overall business performance across every industry. Whether you're leading a retail team, running a busy call center, or managing frontline staff, unplanned absences create costly gaps particularly for shift-based teams. Worse still, they often lead to increased stress and workload for the remaining staff, contributing to disengagement and higher turnover.
When absenteeism rates rise, retention suffers. Staff may feel frustrated by an uneven workload or demoralised by perceived unfairness. Addressing absenteeism effectively is not only about lifting productivity - it's a powerful lever to improve retention and reduce costly turnover.
What is Absenteeism?
Absenteeism refers to frequent or habitual absence from work without valid reasons. Often called "unscheduled absences," "workplace absence," or simply "calling in sick," absenteeism can range from occasional sick days to regular patterns of not showing up for work.
In more severe cases, this can lead to chronic absenteeism - a pattern of repeated absence over an extended period that can significantly disrupt operations and team dynamics.
While occasional absences are normal and necessary - for example, due to illness or family emergencies - high levels of absenteeism can signal deeper organisational issues. These may include poor workplace culture, poor fatigue management, excessive stress, disengagement, or health concerns.
It is also important to consider presenteeism alongside absenteeism. Presenteeism occurs when employees come to work while unwell or unproductive, often resulting in lower output and potential risks to workplace safety and team morale.
Reducing absenteeism (and presenteeism) doesn't just lift productivity - it helps retain valued team members, creates a healthier work environment, and ultimately boosts organisational resilience.
Types of Absenteeism
Understanding the different types of absenteeism helps organisations categorise absences correctly and respond appropriately:
- Intermittent absenteeism
Occasional absences that may or may not be linked to ongoing health conditions. These can include both medical and non-medical reasons. - Medical intermittent absenteeism
Sporadic absences caused by medical needs, such as flare-ups of chronic conditions or regular medical appointments. - Non-medical intermittent absenteeism
Unplanned absences driven by personal issues, family emergencies, or other non-health related reasons. - Unauthorised absence
When an employee is absent without prior approval or valid reason, often without notifying the organisation. - Failure to report
Absences where the employee does not follow the correct procedure for notifying their absence, causing confusion and disruption to operations.
The Impact of Absenteeism on companies
Absenteeism has serious and wide-reaching impacts globally.
In Europe, countries like Germany and Spain have reported sharp increases in sick leave, with Germany recording an average of 15.1 sick days per employee in 2023, costing employers billions annually.
In the United States, absenteeism cost businesses over $225 billion in 2023, with an average cost of $1,685 per employee.
Meanwhile, Australia sees unplanned absences costing approximately $33 billion a year, and New Zealand faced a $2.86 billion loss in 2022 alone.
Key impacts of absenteeism include:
- Productivity
Lost output and reduced operational efficiency due to missing team members.
- Financial costs
Significant direct and indirect costs. For example, New Zealand alone lost $2.86 billion in 2022.
- Increased workload
Remaining shift workers often bear the burden, leading to stress and potential burnout.
- Reduced morale
Frequent absences can affect team dynamics and workplace culture.
- Higher turnover
Unmanaged absenteeism can contribute to disengagement and increased staff turnover.
Common Reasons for Absenteeism
Identifying the underlying reasons behind absences can help address them proactively and minimise their impact.
- Illness, injury and incapacity
Physical illnesses and injuries remain some of the most frequent causes of absence. These range from short-term illnesses like colds to more serious health issues requiring extended leave.
- Ongoing medical issues
Chronic health conditions can lead to repeated or long-term absences as employees undergo treatment or manage ongoing symptoms.
- Personal and family-related issues
Non-medical reasons such as family emergencies, childcare challenges, or personal stress can result in unexpected absences. It can also be an early sign of quiet quitting.
- Fatigue and burnout
Long hours, poor shift patterns or insufficient rest between shifts can lead to physical and mental exhaustion. If left unaddressed, fatigue becomes a major driver of both absenteeism and staff turnover.
Can absenteeism be a sign of shift workers quietly quitting?
In some cases absenteeism can also be an early indicator of quiet quitting. When employees begin to disengage from their roles, they may start withdrawing through increased sick days, late arrivals, or unplanned absences.
While not always intentional, this behaviour can signal deeper issues like dissatisfaction, burnout, or a lack of connection to their team or purpose. Monitoring patterns and having open conversations can help uncover the root cause before it leads to full disengagement or turnover.
How Does Absenteeism Impact Shift Workers
Absenteeism does not just affect the bottom line and overall productivity - it directly disrupts daily schedules and rosters, putting pressure on managers and colleagues alike.
- Last-minute shift changes
Unplanned absences force managers to make quick adjustments to employee schedules, often scrambling to fill gaps with limited notice.
- Increased stress for staff schedule makers
Creating or updating staff schedules becomes more complicated, with constant adjustments impacting time and accuracy.
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Extra workload for peers
Other team members may need to cover shifts or stay longer, increasing fatigue and lowering morale.
- Buying hours and casual staff
Organisations may need to bring in casual or agency staff to cover gaps, often at higher costs.
- Skill and coverage gaps
When specific skill sets are absent, it can impact service delivery, safety, and team performance.
These disruptions highlight why it’s essential to take a proactive approach - here are 10 proven ways to reduce absenteeism and support a more stable, resilient workforce.
10 Proven Ways to Reduce Absenteeism for Shift Workers
Here’s how to tackle absenteeism head-on and strengthen retention in your organisation.
1. Create a Positive Workplace Culture
“To win in the marketplace, you must first win in the workplace.” - Doug Conant (ex-CEO of the Campbell Soup Company)
A UK study by CIPD (2023) highlights that stress and mental health issues are significant contributors to absenteeism. Foster trust, respect, and regular recognition. When employees feel genuinely valued and supported, they are more likely to stay engaged and committed to their roles.
Open communication, inclusive leadership, and celebrating team achievements help build a positive workplace culture through strong team connections across the workplace. This not only reduces the likelihood of unscheduled absences but also creates an environment where people feel motivated to show up and contribute every day.
2. Support Employee Health and Wellbeing
“Good health IS good business” - Paul Drechsler (CEO, Wates Group Limited)
Providing meaningful support for employee wellbeing can significantly reduce absenteeism and foster a more engaged workforce. This includes offering free subscriptions to wellbeing apps, access to therapy services, and designated mental health days to allow staff to recharge without stigma.
Promoting healthy living through flexible working arrangements and encouraging a positive work-life balance also plays a crucial role. When employees feel supported in managing both their physical and mental health, they are less likely to take unscheduled leave and more likely to remain committed and productive at work.
3. Provide Clear Policies and Expectations
Clear absence policies help reduce unauthorised absenteeism by ensuring employees understand what is expected of them. Transparent guidelines create consistency and fairness, reducing confusion and helping managers address issues confidently.
An example policy template can be found here if you need to get started with creating one.
4. Manage Last Minute Shift Changes More Effectively
“Empowering your team with better work-life balance through optimised shift management is a powerful way to retain staff and optimise your workforce” - Isaac Cleeland (Founder, RosterLab)
AI rostering tools make it easier to manage shifts, fill skill gaps and accommodate last-minute changes without disrupting your team. Automating this process reduces the administrative burden and helps minimise absenteeism linked to rostering frustrations and fatigue.
5. Monitor Patterns and Address Concerns Early
Using data to track absenteeism can help identify patterns and intervene before issues escalate. When managers address concerns early and offer support, it can prevent frequent absences from becoming ingrained habits.
The two metrics you should be tracking are:
- Absenteeism Rate ( (Total Absentee Days ÷ Total Workdays Available) × 100)
- Absence Frequency Rate (Number of Absence Instances ÷ Number of Employees)
This can help you identify issues and patterns within your workforce.
6. Flexible Shifts = Happier Teams
For shift-based teams who can’t work remotely, flexibility comes from how shifts are designed and distributed. Poorly managed shift schedules can lead to fatigue, stress, and increased absences.
Using better scheduling practices - like avoiding excessive night shifts, allowing workers to add their shift preferences, avoiding understaffing and ensuring fair rotation - helps employees stay well-rested and engaged.
7. Promote Workload Management and Prevent Burnout
Excessive workloads can lead to stress and burnout which are major drivers of absenteeism. Encouraging realistic workloads, setting clear priorities and monitoring team capacity helps prevent staff from reaching breaking point.
8. Encourage Taking Leave Regularly
“The secret to being a good leader is to actually care about your employees.” - Gary Vaynerchuk (CEO, VaynerMedia)
When employees take their leave entitlement regularly, they return to work recharged and less likely to burn out. Cultivating a culture where rest and time off are encouraged supports long-term attendance and retention.
9. Train Managers in Empathetic Leadership
“Empathy is not something we offer to our customers or our employees from nine to five... (it) is... "a second by second, minute by minute service that [we] owe to everyone if [we] want to call [ourselves] a leader.” - Simon Sinek (CEO, The Optimism Company).
Positive relationships with line managers play a key role in reducing absenteeism. Training managers to lead with empathy, check in regularly and support their teams can foster stronger engagement and lower unplanned absences.
10. Address Presenteeism Head-On
Presenteeism, when employees come to work sick or unwell, often leads to longer-term absenteeism. Encouraging staff to take time off when needed helps maintain a healthier, more resilient workforce.
Tools and Templates for Managing Absenteeism
To make tracking and addressing absenteeism easier, consider using some practical resources:
- AI staff scheduling
A digital scheduling tool can help manage the impact on your shift workers from absenteeism by handling shift swaps, maintaining fairness, and ensuring rosters stay compliant and balanced. - Absenteeism tracking
A simple Excel or Google Sheet to log absences and monitor patterns. - Absence reporting checklist
Ensure employees follow correct notification procedures.
Final Thoughts
Absenteeism, especially chronic absenteeism, presents serious challenges for organisations globally. It impacts productivity, team morale, and retention - often more than leaders expect. However, reducing absenteeism is achievable with a proactive and empathetic approach.
By focusing on creating a positive workplace culture, offering health and wellbeing support, and using smarter rostering tools like RosterLab’s digital scheduling solution, businesses can create a more resilient and satisfied workforce. This not only reduces absenteeism but also strengthens retention, creating a virtuous cycle of better engagement, lower costs, and stronger business performance.
Implementing these proven strategies will help your organisation move from reactive to proactive absenteeism management - ultimately creating a workplace where people want to show up and contribute every day.