While the absenteeism rate declined slightly to 2.1 percent from 2.2 percent in 2001, the average per-employee cost of absenteeism climbed to an all-time high of $789 per employee on an annual basis, costing small companies as much as $60,000 a year and larger employers $3.6 million. This accounts for approximately 2.3 percent of employers' payroll expenditure.

"No-shows take their toll both in direct wage dollar and lost productivity," said Lori Rosen, JD, CCH workplace analyst. "Employers ignoring these costs are missing the chance to control expenses, something most employers need to do given the current economy."

The survey found that personal illness was the main reason for an employee's absence, with 33 percent of respondents citing this as the single most common reason for last-minute no-shows. Reasons other than illness account for a whopping 67 percent of absences, which include "family issues", "personal needs" and "stress".

Rosen recommended that employers take preventative measures to curb the problem through absence control and work-life programs that maximize productivity and control costs, adding that employers can not afford to cling to traditional sick leave policies.

"The status quo is costing them more each year. They need to create policies and programs that accommodate the changing requirements of today's workplace," said Rosen.

To curb unscheduled absenteeism, employers are searching for solutions. The survey found that organizations now use an average of 7.3 work-life programs. In order from most used to least used, these include employee assistance plans, wellness programs, alternative work arrangements, leave for school functions and compressed work week.

Additionally, organizations are implementing absence control programs. Paid leave banks, which provide employees with a bank of hours to be used for various purposes instead of traditional separate leave programs for sick, vacation and personal days, ranked as the most effective program, but only 59 percent of those surveyed reported having this program at their companies. Instead, the most utilized programs, according to respondents, are displininary action (93 percent), yearly review (81 percent) and verification of illness (71 percent).

"If an employee's only option for being absent is taking a sick or vacation day, the employee cannot schedule an absence for a medical appointment or to close on a new home purchase," noted Rosen. "When time off is flexible enough to allow employees to miss work for personal business, then those days or hours off can be scheduled and the employer can be prepared to cover the employee's duties while he or she is away."

Conducted by Harris Interactive in June and July this year, the survey polled 333 human resource executives in U.S. companies and organizations of all sizes and across major industry segments. To order the CCH Human Resources Management Ideas & Trends newsletter, which contains this survey, call 1-800-449-9525 and ask for offer number 0628001. Price is $29.95 plus tax, shipping and handling.

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