The 13th annual CCH Unscheduled Absence Survey, conducted by Harris Interactive, shows that the absenteeism rate declined to 1.9 percent in 2003 from 2.1 percent in 2002, and the average annual per employee cost of absenteeism dropped to $645 from $789 in 2002.

The current economy may be among the factors in the overall reduced rate and cost of absenteeism, experts say.

"Employees may be more fearful of taking off time given the tight job market," said CCH workplace analyst Lori Rosen, JD. "It's also worth noting that costs are down significantly, which is in part a result of the fact that employers have been aggressive over the past year at finding different ways to control wages. For example, many employees who are now coming back into the workforce are doing so at a lower rate."

The survey also found that most unscheduled time off, 36 percent, is due to personal interest. The remaining two-thirds of unscheduled absences are due to family issues, personal needs, entitlement mentality, and stress.

Organizations that report a below-average worker morale are more likely to have unscheduled absences -- the rate is 17 percent higher at these companies, says the survey. Furthermore, whereas employers set aside an average of 4.4 percent of their budgets for absenteeism, employers increase this to 5.3 percent when emoployee morale is factored in.

"This should be a real wake-up call for employers who think employee morale doesn't matter or can easily be addressed," said Rosen.

Of the programs rated highest in curbing unscheduled absences, four of them provide employees with greater control over when and where they work. These include: Alternative Work Arrangements, Compressed Work Week; Job Sharing; and Telecommuting. However, the survey reveals a decline in the number of employers offering programs that provide flexibility. The work-life programs most likely cut are: Compressed Work Week; Job Sharing; and Telecommuting.

Rosen noted that the decrease in work-life programs, which help people balance personal and professional demands, combined with employers' high expectations in a tight economy, could place greater strains on workers and result in higher absenteeism.

An emerging issue that employers need to learn to manage, especially when so many are operating with as small of a staff as possible, is presenteeism. This is when employees come to work sick, explained Rosen.

"With fewer people doing the work, employers need greater productivity from each person. Employees may feel pressured not to take time off or, on their own, may simply feel they are too busy to miss work, even if they're legitimately sick. But when employees go to work sick, they risk infecting their co-workers and they're also probably not going to be effective."

CCH recommended that employers pay particular attention to employee morale in order to curb unscheduled absenteeism. Tips include:

• Have a flexible time-off plan
• Help employees to understand both the overall corporate scheme and specific processes of which they are a part
• Try to improve the interpersonal relationships of co-workers
• Institute employee suggestion and complaint programs
• Improve the chances for advancement for good employees. Improve the chances for advancement for good employees

For more on the survey, visit http://www.cch.absenteeism.com