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The Lowdown on Sick Time and its Impact on the Company

Published: November 27, 2017

The word Absenteeism refers to an employee’s habitual or intentional absence at work. While employers do assign a number of workdays for employees to miss, the lowdown on sick leaves may cost a company its productivity as well as revenue.

Even though allowing employees sick leaves is favorable for a business as it helps employees stay healthy, but habitual absenteeism or abuse of sick leaves may become a burden for the company and its other staff members.

Hence, as we now enter into the holiday season, chances are that you may come across many unscheduled leave applications from your employees. So, before you start approving them, you must understand the impact it can create on your business. This will not only help you in managing these uncertain situations and but also in maintaining the business productivity in the meantime.

Let’s have a look.

Diminished Performance

If your business has not defined a disciplinary action for employees who exploit sick leaves, chances are that the issue will gradually aggravate. This is because if an employee does not receive any penalty or strict action for his/her excessive absenteeism, this also hurts the performance of other staff members.

The other staff members will notice the concession a manager is making to retain the employees who are frequently absent from the work and this will motivate them to exploit the system, too. Hence, once this cycle is created, it becomes really hard to control the practice along with managing the low employee morale, low productivity and high rate of turnover.

Productive Continuity

Employees who are majorly on sick leaves not only lose their own productivity but also hinder the productivity of the overall workgroup. Such employees disrupt the productive continuity as other staff members have to constantly adjust their routine to perform the work of the absent employee as well.

Moreover, there remains a consistent need of replacement which is at times quite difficult to manage for both the staff and the employer. This is because every employee has a different set of skills and not every other employee can fulfill the job requirements or substitute the existing expertise.

However, businesses which make the most of the advance software tools such as time and attendance software offered by Mitrefinchnot only remain abreast of employees’ schedules, but are also able to better manage replacements and assign specific tasks.

Increased Conflict among Staff Members

This happens when staff members have to cover the habitual absentees frequently. They start to resent the additional work or frequent replacements and this frustration eventually lead to conflicts amongst workgroups. This tension combined with past conflicts and pending confrontations establishes a highly uncomfortable working environment. Hence, when employees work in a negative environment, it is evident that employers have to face slow productivity and high rate of turnover.


Conclusively, a few sick days might not impact your business, but when left unaddressed, high absenteeism of employees can drastically affect the bottom line of your business. Hence, the best way to work around this lowdown on sick time is to create an effective attendance policy and establish an advance absences-tracking mechanism.

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