How to reduce absenteeism

Posted by Alessio Tanganelli, Country Manager Italy on Wed, Sep 25, 2013

How.to.reduce.absenteeismAbsenteeism reduces profits and inhibits good business performance. How much does it “cost,” and how can a business reduce absenteeism? It’s hard to say; however, there are many losses incurred as a direct result of absenteeism: regular and overtime wages, supplementary recruitment, a reduced quality of service, delayed deliveries, the job stress of other colleagues, and a reduced team spirit.

It is, of course, acceptable that people can stay away from work for personal reasons, but the real main cause is often illness, which is a direct consequence of the daily stress, workload, pressure, and the occasional physical injury and disease.

Here are some references to companies around the world that take this issue very seriously; some of the Top Employers.

Data from the research of the Top Employers around the world show that having good fitness facilities inside the company may significantly reduce absenteeism.

Pilates, yoga, cardio, and corporate gyms: these are growing trends and are increasingly competitive factors considered by companies, acting as elements of corporate welfare that also have interesting benefits that may reduce absenteeism.  Companies that have an indoor gym and also offer guided activities (personal-trainer courses) during working hours may also be able to reduce absenteeism.

In this article, I’d like to share with you the example of Top Employers Italy 2013, where the rate of absenteeism shifted from an average of 4.3% to 2.9%.

The research was conducted through a detailed questionnaire concerning all elements that, combined, make a company a Top Employer or an excellent example of HR policies and strategies. Among the factors that were taken into consideration are those referring to a “working environment,” a key area that comprises several elements including those similar to fitness (i.e. corporate gyms, training and advice, a dedicated budget, etc.). This data highlights the presence of gyms within the corporate structure and its dedicated budget. 53% of Top Employers Italy 2013 had internal gym facilities and assigned budget to it, an important fact although it is lower than the European average (78%).

There’s more. Sports, fitness, and an active lifestyle are seen as valid elements to encourage networking within the organization.

38% of Top Employers Italy 2013 offer its employees sporting facilities as motivation to promote aggregation and corporate networking. The figure shows a 2% increase (now 47%) over the previous year (2012), shortening the distance from the European Union average. The data spins upwards, if, at that level of networking, you also take into account sporting and corporate events. Here, the percentage of Top Employers Italy 2013 is 80% and the difference between that and the European average (89%) is less than 10%.

Once again, these figures from the Italian market show how important it is to incorporate sporting activities into our (working) daily life, giving direct benefits to our mental and physical health, enhance productivity, improve team engagement, and eventually reduce absenteeism – a important figure, taken into account, given increasing attention by the companies’ top management.

And what about the best practices around the world? Have you got any innovative ideas to share with us that would help reduce absenteeism?