The rate of unscheduled absenteeism fell to an all-time low of 1.9 percent from 2.1 last year, according to the findings of the 13th annual CCH Unscheduled Absence Survey conducted by CCH INCORPORATED (CCH), while the average annual cost to employers of last-minute no shows dropped to $645 per employee from an all-time high of $789 in 2002.

Even so, the cost of employee no-shows can be more than a million dollars annually for large companies.

The CCH Unscheduled Absence Survey, conducted for CCH by Harris Interactive, is the definitive survey on absenteeism in the workplace and the only one that measures costs associated with unscheduled absences.

The survey also found that while Personal Illness remains the single most common reason for last-minute no-shows (36 percent), nearly two-thirds (64 percent) of unscheduled absences are due to Family Issues (22 percent), Personal Needs (18 percent), Entitlement Mentality (13 percent) and Stress (11 percent).

Highlight of Key Morale Findings

• Despite the overall decline in the rate of absenteeism, organizations reporting low employee morale struggle with higher unscheduled absenteeism rates. The rate of unscheduled absenteeism is 17 percent higher among companies with Poor/Fair morale compared to those with Good/Very Good morale (2.1 vs. 1.8 percent).
   

• Low morale also has a high price tag. Overall, the survey found that employers set aside an average of 4.4 percent of their budgets for absenteeism. However, organizations with Poor/Fair morale set aside 5.3 percent of their budgets to cover costs of absent workers compared to just 3.7 percent in organizations with Good/Very Good morale.
   

• Companies with low morale also were more likely to experience unscheduled absenteeism due to Stress (14 percent) and Entitlement Mentality (16 percent) than organizations reporting morale as Good/Very Good (9 and 11 percent, respectively).

"This should be a real wake-up call for employers who think employee morale doesn't matter or can easily be addressed," said CCH workplace analyst Lori Rosen, JD. "Morale does matter and poor morale can have an evident impact on the bottom line."

Summary of Work-life and Absence Control Findings

• The most used work-life programs are Employee Assistance Plans (used by 67 percent of organizations), Alternative Work Arrangements (56 percent) and Leave for School Functions (56 percent).
   

• Those work-life programs seen as most effective in curbing absenteeism on a 5-point scale with 5 being the most effective are Alternative Work Arrangements (3.5), Leave for School Functions (3.5) and Compressed Work Week (3.4).
   

• Disciplinary Action remains the single-most used absence control program, in place at 96 percent of organizations, while Paid Leave Banks (also known as Paid Time Off) - in use at 59 percent of organizations - continue to be viewed as the most effective absence control program.

About the Survey

The 2003 CCH Unscheduled Absence Survey covering 436 human resource executives in organizations of all sizes and major industry segments in 47 states and the District of Columbia was conducted from June 16 through July 9, 2003 and reflects experiences of organizations with an estimated total of nearly two million employees. The CCH Human Resources Management Ideas & Trends newsletter sponsored the survey.