How employers can help reduce absenteeism in the workplace

How high is the cost of absenteeism? According to Gallup, workers with “fair” or “poor” mental health record four times more unplanned absences than their counterparts, costing the American economy $47.6 billion annually.

This absenteeism has both hard and soft costs — there are tangible business losses and intangible impacts on morale. Hard, direct costs are quantitative, and can be measured in dollar amounts, such as the $575 billion that US employers pay annually for their employees’ chronic illness and injuries.

Soft, indirect costs are qualitative. It’s difficult to measure their financial impact, as decreased engagement, delayed workflows, and diminished morale can have long-term rather than short-term ramifications.

Whether quantitative or qualitative, the impact of absenteeism is negatively affecting organizations. A lower rate of unscheduled absences corresponds to higher workplace morale, and one of the ways to help improve it is with programs that can help support health and work-life balance. Here’s why.

Burnout is a symptom of a broken system

The phenomenon of burnout is widespread. While the condition can have numerous personal and professional causes, it manifests acutely in the workplace when employees are exhausted, have lost the motivation to perform their jobs, and in some cases, see missing work — including a leave of absence or resignation — as their only recourse.

According to isolved’s 2024 HR Trends survey, 65 percent of employees are suffering from burnout. This alarming rate suggests that employers may not be offering their employees adequate flexibility, rest, and care resources as part of their compensation package.

When employees can’t find resources to address burnout, it threatens to make absenteeism, and even employee turnover, much more severe. In one survey, 57 percent of employees said they were unable to confirm the existence of easily accessible mental health support services in their workplace — 24 percent reported the absence of these services, and another 33 percent were unaware if they are even available through their employer. 

Access to mental health care is a necessity

For years, there’s been a push to end the stigma around mental health, and it’s evident that not enough is currently being done. Almost a quarter of working Americans assess themselves as having a “high mental health risk”, resulting in anxiety, isolation, and decreased work productivity. 

Moreover, another survey found that 59 percent of workers do not feel their supervisor provides emotional support to help them manage their stress.

Employers can start making a meaningful difference by encouraging candid conversations around mental health, and by providing access to on-demand virtual resources, among other things. Tools like short-form, digestible training sessions on resilience and coping can open up conversations and foster a safe workplace culture where employees can openly speak about their challenges.

Such programs benefit both the employee and the organization, as the Centers for Disease Control and Prevention found when it reviewed more than 50 well-implemented workplace health programs. They discovered a 25 percent savings in each of absenteeism, healthcare costs, and workers’ compensation and disability management claims costs.

Work-life balance is imperative for employees

In 2022, the US Surgeon General outlined five ways employers can help boost the mental health and wellbeing of their employees. The list comprised promoting physical and psychological safety, fostering social interactions, offering work-life harmony, emphasizing the importance of employees feeling valued, and providing opportunities for professional growth.

Within each area are measures employers can take to promote work-life balance, including prioritizing safety, creating inclusive cultures, providing flexible schedules, ensuring fair compensation, and offering training and feedback. And, as discovered by Harvard Business Review, corporate programs that support work-life balance promote productivity, reduce turnover, and improve employees’ mental and physical health.

This personal and professional life balance can also be enhanced by an employee assistance program (EAP). A Federal Occupational Health study found that having an EAP reduced absenteeism by nearly 70 percent. It’s also effective in delivering immediate, short-term solutions for personal or professional challenges.

Putting people first matters more than ever

Today, digital solutions make it easier for organizations to deliver programs and benefits that let employees personalize their care, optimize their time, and invest in their health and wellbeing. 

Enhanced healthcare solutions like the suite of TELUS Health services, for example, offer employees the convenience of care resources, ancillary services, and digital health platforms, all of which help to educate, engage and inspire employees to achieve their personal health and wellness goals.

To learn more about how TELUS Health can help promote workplace wellbeing and reduce absenteeism in your organization, connect with our team or request a demo.