The Real Cost of Employee Absence (and How You Can Reduce It)
Did you know employees in the U.S. are most likely to call in sick to work on August 24th? A close second is February 13th, which just happened.
While it’s important to encourage employees to take time off when they’re genuinely sick, excessive employee absence can take an expensive toll on your business.
According to the Centers for Disease Control, absenteeism cost U.S. businesses a staggering $225 billion in 2023, approximately $1,685 per employee.
So how can you track, manage, and reduce absenteeism before it becomes a bigger, more expensive problem? Let’s take a look.
Why managing and reducing absence is important
If left unchecked, employee absence can have a ripple effect on your business, affecting everything from productivity to morale.
Financial impact: With U.S. businesses losing over $225 billion to absence, it clearly comes with a significant cost. Lost revenue, overtime expenses, and the need for temporary replacements can quickly add up.
Operational efficiency: Absences disrupt workflows, delay projects, and increase workloads for other employees, which can lead to stress and burnout in your team.
Employee morale: Persistent absenteeism creates an uneven distribution of work, harming team dynamics and lowering employee engagement.
Absenteeism isn’t just about employees missing work—it’s about keeping your team engaged and your business running smoothly.
How you can track absenteeism
One of the most effective ways to monitor absence is by leveraging HR software. This type of software allows you to:
Automatically record and monitor employee absence
Identify patterns and trends
Generate reports to quantify the impact
Having this data at your fingertips helps you to make informed decisions and address potential issues proactively.
Top reasons for absence in the US
Some of the leading causes of employee absence are:
Mental health challenges – Stress, anxiety, and burnout are leading drivers of absenteeism.
Illness & medical appointments – Especially common during cold and flu season.
Stomach bugs – Often contagious, leading to multiple absences at once.
Chronic health conditions or disabilities – Long-term health concerns may require additional flexibility.
Childcare or eldercare responsibilities – Employees may need unexpected time off to care for loved ones.
Understanding these reasons helps you to prevent unnecessary absences and offer your employees solutions that can benefit both parties.
How to take action to reduce absence
The right actions depend on the specific causes of absence in your workplace.
However, here are some effective strategies you can check in your business.
✅ Support employee well-being – Offer wellness programs, encourage mental health days, and create a positive work culture.
✅ Embrace flexibility – Flexible work arrangements (remote work, adjusted hours) help employees balance personal and professional responsibilities.
✅ Encourage open communication – Create a culture where employees feel comfortable discussing challenges before they lead to absences.
✅ Provide mental health resources – Employee Assistance Programs (EAPs) and mental health training for managers help prevent burnout.
✅ Use data to guide your actions – Use HR software to spot trends and tailor your approach to the root causes of absences.
By taking proactive steps, you’ll create a healthier, more engaged workforce—and reduce the cost of absenteeism in your business.
Need help managing absence in your business?
If absenteeism is becoming a challenge in your business, JoltHR is here to help.
Our team can help you create a custom strategy to track, manage, and reduce employee absences, all while building a workplace that keeps employees engaged and productive.
