This article has some surprising statistics about the effects of absenteeism and tardiness on businesses, including the main reasons for them and the costs businesses bear, and some effective ways to negotiate with employees perpetuating this behavior instead of immediately moving to terminate them. 

The prevalence of absenteeism

Employees use almost half of their overtime to cover work they didn’t do because they were absent. On average, businesses see a productivity decline of 40% due to unplanned absences. 

Surprisingly, more than 50% of companies that have more than 1,000 employees are still using a manual process to manage absences. These companies see recurring unplanned absences and struggle to enforce their attendance policies. A time clock app can help businesses manage absenteeism. In the first half of 2023, manufacturing organizations using time clocks that integrate absence tracking software saw a 17% decline in absences year-on-year. 

The Bureau of Labor Statistics reports the national absence rate in 2023 to be 3.1%, down from 3.6% in 2022. The main causes of absences are illnesses and injuries. 

The most common reasons for being late to work 

Traffic is the most common cause of lateness, with a quarter of employees citing it. The next most common reason is personal problems with 18%. Oversleeping comes in third, with employees being three times more likely to be late because they overslept than a home-related issue.

Almost 30% of workers are late to work at least once per month. On average, 6% of hourly workers are habitually late for work.

The cost of lateness 

US businesses lose $3 billion a year because of employees who are late to work. The average annual cost per employee is $500-$600. If you have 100 employees who are regularly late, it will cost the company at least $50,000. The problem with tardiness is so bad that 41% of employers have let someone go because of it.

Negotiating with excessively absent or late employees 

The above statistics show absenteeism and tardiness are grave matters that you need to address urgently. Here is a step-by-step guide on negotiating with employees whose excessive absences or tardiness has become problematic.  

Gather information

Before the negotiation, gather relevant information such as attendance records, tardiness reports, and any documented instances of absenteeism or lateness. This will provide concrete evidence to support your concerns during the negotiation. You could note how late the employee is. On average, tardy workers are 21 minutes late. In comparison, employers are comfortable with a maximum of seven minutes. 

Arrange a private meeting 

Arrange a private meeting with the employee to discuss their attendance and punctuality issues. Choose a neutral and private location where you can have an uninterrupted conversation.

Use specific examples to show how their behavior impacts their work, team, and the organization as a whole. Stay calm and professional throughout the discussion.

Listen to their point of view

There may be underlying reasons for their absenteeism or lateness, such as personal issues, health problems, or transportation issues. 

Communicate your expectations

Explain the importance of reliability and how their behavior affects their job performance and the team’s productivity. Be specific about the consequences of continued absenteeism or lateness.

Propose a solution

Work collaboratively with the employee to identify potential solutions to address their attendance and punctuality issues. This could include adjusting their work schedule, providing additional support or resources, or implementing a probationary period with specific goals and targets.

Offer to support the employee in improving their attendance and punctuality. This could include counseling services, flexible work arrangements, or referrals to external support networks. 

Document the negotiation

Document the details of the negotiation, including the issues discussed, agreements made, and any action steps identified. Keep accurate records of the employee’s attendance and punctuality moving forward.

Follow up 

Establish a follow-up plan to monitor the employee’s progress and address any recurring issues. Schedule regular check-ins to review their attendance and punctuality, provide feedback, and make any necessary adjustments to the plan.

Hold the employee accountable for their commitments and follow through with any consequences outlined during the negotiation. Consistency is key to enforcing attendance and punctuality policies, which is mandatory given that replacing a worker will set you back 20% of their annual salary on average. The costs of replacing employees for lateness can add up. 

In sum, here’s how to negotiate with an employee who is excessively late or absent: 

• Gather information
• Arrange a private meeting 
• Listen to their point of view
• Communicate your expectations
• Propose a solution
• Document the negotiation
• Follow up