How To Reduce Absenteeism At Work
Practical strategies to reduce absenteeism, costs, and improve team morale.
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Absenteeism disrupts workplace productivity, increases costs, and lowers team morale. Whether due to burnout, disengagement, or health issues, frequent absences can strain businesses.
Left unchecked, absenteeism leads to lost revenue, overworked employees, and a toxic work culture. Presenteeism—where employees show up but underperform—only worsens the issue.
By implementing clear policies, fostering engagement, and supporting employee wellbeing, businesses can reduce absenteeism and create a healthier, more productive work environment. Here’s how.
What Is Absenteeism?
Absenteeism refers to employees missing work when they are scheduled to be present. It can be classified into two broad categories:
Planned Absences
These include approved leave types such as annual leave, personal leave, long-service leave, mental health sick leave and parental leave. While they may require workforce adjustments, they are predictable and manageable.
Unplanned Absences
These are sudden, unexpected absences due to illness, personal emergencies, stress-related issues, or other unforeseen circumstances. Unplanned absenteeism can disrupt workflow, increase operational costs, and impact overall productivity.
Types of Absenteeism
Chronic absenteeism
Refers to frequent, long-term absences, often linked to burnout, health issues, or job dissatisfaction. This is especially challenging for SMEs, where a single missing employee can significantly affect daily operations.
Intermittent absenteeism
This involves occasional but unpredictable absences, which may be due to minor illnesses, disengagement, or personal issues. Both types can indicate deeper workplace problems if patterns emerge.
Presenteeism
Often referred to as “hidden absenteeism,” happens when employees come to work but are unwell or disengaged, leading to low productivity.
Sick employees can spread illness, further increasing absenteeism, while disengaged staff can negatively impact morale and efficiency. SMEs, where every team member plays a vital role, are particularly vulnerable to the ripple effects of presenteeism.
See some of the most important absenteeism statistics for Australian businesses.
Australian workplaces lose around $33 billion annually due to absenteeism
How To Reduce Absenteeism
Establish Clear Attendance Policies
Employees need clear guidelines on leave reporting, including when and how to notify managers of absences. Policies should outline acceptable reasons for leave, documentation requirements, and the consequences of excessive absenteeism.
However, flexibility is crucial for legitimate cases, such as medical or family emergencies, to maintain fairness and trust. Find out why flexibility and employee autonomy at work can make a substantial difference.
Improve Employee Engagement
Employees who feel valued and see growth opportunities are more likely to stay engaged and committed. Providing career development programs, training, and internal promotions fosters motivation.
Employee recognition programs—whether through bonuses, public acknowledgment, or small incentives—boost morale and encourage attendance. Lack of employee recognition is a common psychosocial hazard and can contribute significantly to poor workplace mental wellbeing.
Promote Employee Wellbeing and Mental Health Support
A supportive workplace reduces stress and prevents employee burnout. Flexible work arrangements, such as hybrid or adjusted hours, help employees balance personal and professional responsibilities. Employee Assistance Programs (EAPs) offer confidential support for mental health, financial concerns, and other personal challenges, ensuring employees feel supported both inside and outside work.
Address Workplace Culture Issues
A toxic or unsupportive work environment can drive absenteeism. Encouraging open communication, where employees feel safe discussing workload or personal concerns, fosters trust.
Training managers in effective leadership, active listening, and problem-solving equips them to provide better support and create a positive workplace culture. See our guide on talking to your employees about mental health.
Preventative Measures
Encouraging employees to take sick leave when genuinely unwell prevents presenteeism and the spread of illness, which can lead to further absences. This also includes encouraging staff to take mental health sick leave when relevant too.
Tracking attendance patterns allows businesses to identify concerning trends early and intervene before absenteeism becomes a chronic issue, ensuring a healthier and more engaged workforce.
Reduce Absenteeism Today Through Proactive Employee Support
Reducing absenteeism requires clear policies, strong engagement, and a healthy workplace culture. Addressing burnout, stress, and disengagement early helps keep employees present and productive.
Employee Assistance Programs (EAPs) are a game-changer. They offer confidential mental health support, stress management, and employee counselling, helping employees tackle challenges before they lead to extended absences.
Want to cut down absenteeism at your workplace? Talk to Foremind about our EAP today—a proactive step toward a healthier, more engaged workforce.
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Answers to the frequently asked questions.
Our last EAP was barely touched. Why would this be different?+
Most EAPs go unused because of how they're accessed, not because staff don't need them. Phoning a stranger, explaining yourself, then waiting weeks is enough to stop most people before they start. Foremind removes all three steps: staff see real counsellor profiles, pick someone themselves, and book the same day.
If you already have a provider, the question worth asking is what your current utilisation is. Most traditional EAPs sit in low single digits, which means you're paying for cover your people aren't reaching. If yours is being used, staff can get seen quickly, and it covers your psychosocial obligations, there's no reason to move. If not, it's worth knowing what you're getting for the spend.
Do you offer 24/7 support?+
Yes. A 24/7 after-hours crisis line means staff can reach someone immediately at any hour, including nights and weekends.
Counselling appointments are also available outside standard business hours, so shift-based and on-call teams aren't limited to a nine-to-five window. Those are two different things, and it's worth checking any provider offers both rather than just the crisis line.
Are your EAP counsellors based in Australia?+
Yes. Every practitioner on the platform holds current membership with an Australian professional body and practises under Australian standards, codes of ethics and disciplinary frameworks. There are no offshore call centres.
Practitioners hold membership with the Australian Counselling Association, the Psychotherapy and Counselling Federation of Australia, or the Australian Association of Social Workers, along with a current Working with Children or Vulnerable People Check.
How much does an EAP cost?+
Pricing is usually per employee per month, based on total headcount rather than how many people use the service. Costs vary widely depending on whether sessions are bundled in and whether compliance tooling is included.
A more useful comparison is cost per employee who actually uses it. An EAP with 2% utilisation can work out several times more expensive per person helped than one that gets used. Foremind offers pay-as-you-go, inclusive session plans and compliance-inclusive plans, with discounted pricing for not-for-profits and charities.
For full breakdown of our plans, see our EAP pricing page or request a quote for a tailored proposal.
What information does an employer receive about EAP usage?+
Nothing that could identify anyone. All counselling is completely confidential and all reporting is anonymous - you'll never see who booked, when, or what was discussed.
What you do see is the aggregated picture: how many people are using it, what psychosocial risks are prevalent in the business, and which teams are under pressure. Enough to know the investment is working and where to act, never enough to identify a person. Reporting thresholds mean small teams can't be reverse-engineered from the data.
Does having an EAP meet an employer's psychosocial duty of care?+
No. An EAP is a control measure, and a valuable one, but it only addresses harm after it has occurred. It doesn't identify hazards, assess risk, or evidence that controls are working.
Australian WHS law requires you to identify psychosocial hazards, assess the risk, control it so far as is reasonably practicable, and review whether those controls are working — with documented evidence at each step. Offering counselling on its own leaves three of those four steps undocumented.
Foremind covers both in one platform. See how the compliance side works in our product tour.