Many companies underestimate the impact of absenteeism, without fully accounting for its broader financial and operational implications. However, minimizing employee time away when a claim or leave occurs is critically important. The importance of developing an effective absence management program cannot be overstated.
Absenteeism presents a significant challenge for businesses in every sector, carrying a heavier financial toll than many realize. On any given day, nearly 3% of an employer’s workforce might be absent, contributing to an annual cost of approximately $225.8 billion across U.S. companies in 2022. These absences, often due to illness or personal emergencies, translate into a per-employee loss of about $1,685.
The consequences of absenteeism extend beyond direct financial losses as they also erode workplace morale and productivity. The nursing shortage, along with shrinking margins and industry pressure to contain costs make scaling disability and leave management services difficult. Developing effective practices and policies are critical to prioritizing employee health and a safe return to work.
Why Do You Need Effective Absence Management?
Effective absence management goes beyond just recognizing the direct costs, such as salaries and benefits for replacement workers. It also addresses the softer, less tangible impacts like diminished morale and productivity. A well-crafted strategy involves quantifying these costs, understanding the underlying causes of absenteeism—from health issues to workplace culture—and implementing robust policies that mitigate these effects.
Organizations that embrace comprehensive absence management practices can reduce the strain on their resources and improve overall workplace efficiency and employee well-being. HR teams can benefit by presenting data-driven insights on the costs and patterns of absenteeism to secure crucial management support for these initiatives, transforming how absences are perceived and handled within the company.
Three Best Practices for Absence Management
All those who work often balance complex lives alongside their demanding jobs. Acknowledging this by offering flexible working conditions can greatly reduce their stress and set them up for success. When employers recognize and value their teams’ personal commitments, it boosts loyalty and promotes positive outcomes throughout the organization, creating a supportive and productive workplace environment.
Absence Prevention
The best way to manage an absence is by preventing it from happening in the first place, particularly given that some of the most common causes of absenteeism in the workplace are musculoskeletal injuries and mental health – ailments that can often be managed through early recognition and implementing preventative practices.
One sure way of doing so is by providing an interactive and person-centered approach to bettering the physiological and psychosocial attributes of an employee to alleviate the risks of absenteeism related to illness. For instance, implementing wellness programs can significantly contribute to absence prevention. These programs may include reductions in health premiums or other incentives for employees who engage in health-promoting activities such as smoking cessation or fitness programs. Additionally, access to Employee Assistance Programs (EAPs) allows employees and their families to telephonically access mental health experts and social workers free of charge.
Likewise, providing resources and opportunities tailored to the needs of those working can improve both mental and physical health. Integrating health coaching and wearable devices further allows for personalized health monitoring and encourages a culture of wellness directly at the workplace. Many companies negotiate discounts on gym memberships or wearables through third party vendors, making these offerings more attractive for employees.
Managing the Absence
Managing absences involves many moving parts such as:
- Evaluating leave requests and eligibility for FMLA, STD, LTD, and/or State leaves of absence
- Updating claims with medical documentation
- Providing clinical resources
Clinical resources, when effectively deployed, can review medical documentation to determine if the leave remains substantiated and help identify barriers or risks that may delay a return to work. Additionally, providing support to employees through health coaching and remote patient monitoring can help in managing a return to work, reducing unnecessary time off and keeping the workplace productive. Promoting telehealth services is a great way to break down barriers to accessible healthcare for those whose schedules make office visits prohibitive.
Finally, one of the best things an employer can do is to reach out to the employee and simply ask, “How are you doing” or “Is there anything we can do to support you during this challenging time?” Studies have typically shown that an employee who feels they are valued and wanted is an employee who is going to be more likely to want to come back to work sooner and will strive to do so.
Coordinating a Successful Return to Work
The ultimate goal of a good absence management program is to return the employee to health and productivity safely. When an employee is ready to return to work, it’s important to facilitate a smooth transition by engaging in vocational rehabilitation or assessments and exploring modified duty options. Comprehensive disability reviews may be performed to determine functionality. Additionally, a well-supported return to work includes engaging nurse case management to follow treatment plans and not only benefits the employee by enhancing recovery but also preserves worker engagement and morale.
Managing Absence with Shearwater Health
Shearwater Health excels in delivering absence management solutions. Best practices and proactive strategies support employees outside of work reducing the impact of absences on the business. Shearwater Health works with our clients to help them augment their clinical teams. We provide resources to support our clients FMLA, ADA, STD, and LTD claims management and administration needs. From determinations of eligibility, document management, and claims payment services, to case management and disability reviews, Shearwater Health can provide the clinical scale our clients need.
