Cause And Effects Of Absenteeism

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Labour absenteeism is a harmful to both the employee and the worker as follow:
Normal work – flow in the factory is disturbed.
Overall production in the factory goes down.
Causal workers may have to be employed to meet production schedules such worker is not trained properly.
Difficulty is faced in executing the order in time.
Overtime allowance will increases considerably because of higher absenteeism.
When a number of workers absent themselves, there is extra pressure of work on their colleagues who are present.
Workers lose wages for the unauthorized absence from work.
Habitual absentees may be removed from service causing them great hardship.


For calculating the rate of absenteeism we …show more content…

18. Education of children.
19. Domestic problems and consequent worries, etc.

Among these causes, in the existing Indian conditions, wage level in industries, has a direct bearing on absenteeism. Sickness on account of bad housing conditions contributes highest to industrial absenteeism. Social and religious causes can be accounted as the second important contributing factor for absenteeism. Absenteeism in industry varies from place to place, depending on the festival, marriage, harvest season and other factors.


Absenteeism is one of the root causes of labour unrest. It affects the worker s earnings as well as the company in the following manner:
1. Decrease in Productivity:

 Employees might be carrying extra workload or are supporting new/ replacement staff. Employees may be required to train and orient new/replacement workers.
 Staff morale and employee service may suffer.

2. Financial Costs:

 May result in payment of overtime.
 Cost of self-insured income protection plans must be borne plus the wage costs of replacement employees.
 Premium costs may rise for insured plans.

3. Administrative Costs:

 Staff time is required to secure replacement employees or to reassign the remaining

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