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- 1. Employee Absenteeism 1 Factors Effecting Employee Absenteeism Supervisor: Mam Mehwish Aziz Submitted by Muhammad Farhan Javed Syed Owais Abid Mushtaq Naeem Khan Federal Urdu University of Arts, Science and Technology Islamabad
- 2. Employee Absenteeism 2 Table of context 1. Abstract: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 2. Purpose of the study: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 3. Introduction: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4 4. Literature Review: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5 5. Theoretical framework: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 6. Research Design: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 Study Setting _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 Time Horizon_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 Sample and procedure_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 7. Data collection: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 10 Health-related events_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 Stress_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 11 Transport _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 Jobs satisfaction_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 8. Data Analysis: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 10 9. Results: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 10. Discussion: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 20 11. Conclusion: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 20 12. References: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 21
- 3. Employee Absenteeism 3 Abstract This study investigates the relationship of employee absenteeism with various factors. We gather the literature from different articles and after literature review we have find that there are many factors which affects employee absenteeism but we take only four independent variables for conduct a research, and we have find that if health of an employee will be affected then employee will also absent from the work, if life stress are increased then absenteeism also increased, Transport facility are not good then absenteeism increased and if employee are not satisfied with job then absenteeism are will also increased. And For this paper we collect the data from 30 employees of through questionnaire on 5 point likert scale in which we check the reliability of each variable and the reliability of dependent variable (EA) is 0.784, reliability of (H) is .313, reliability of (S) is 0766,reliability of (T) is 0.734 and the reliability of (JS) is 0.751, after checking the reliability after checking the reliability we check the correlation of all variables and prove that the correlation of independent variables with dependent variable is highly positive +1. After check the correlation we have find the regression line which tells us that if we change the 1 unit of beta how much change will in dependent variable. Finally the paper concludes with a discussion of employee absenteeism as it relates to all four factors. Purpose of the study: The purpose of this study is to examine the impact of health related events, stress, and transport issue and job satisfaction on the employee absenteeism. Keywords: health related events, stress, transport problem and jobs satisfaction absenteeism
- 4. Employee Absenteeism 4 Problem statement: Factors contributing to the employee absenteeism Objectives of study: To identify the reason of employee absenteeism To measure employee absenteeism level To identify factors to reduce the employee absenteeism To identify factors which motivate employee and thus increase absenteeism Introduction The development of any organization depends upon the regularity of its employees. This study is conducted to know the various level and reasons for absence of employees in an organization. By looking it one can adapt corrective measures to decrease irregularities in the organization lead to organizational growth. Absenteeism is a habitual pattern of absence from a duty or obligation. Expressed more briefly, it is the non-attendance at work of workers expected to be present. Non- attendance may be due to sickness or other causes, and is considered by employers to be something of a problem, particularly when no explanation of absence is given. When a company has an absentee problem, it has a profit problem. Indeed, absenteeism can take a financial toll on any business, be it a small business or a multinational company. But there are other significant effects associated with excessive or unmonitored absenteeism:
- 5. Employee Absenteeism 5 Decreased Productivity: A team is composed of people doing interrelated tasks. If one fails to deliver, it creates a domino effect on productivity. When an employee is absent but is integral to daily work functions, others take his place and their own primary responsibilities and motivation suffer. Demotivate Employees: Those same employees who are at least present, even if not fully engaged, lose enthusiasm for their work. If the fact that they are compensating for the absent employee is not recognized, morale, engagement and retention are also at risk. Customer Loyalty and Satisfaction: It's obvious; employees are the backbone of any company and its customer service. As productivity and morale decline, so too will customer loyalty and satisfaction. Increased Costs: Overtime, temporary staff and lost productivity increase the overall costs not otherwise catered for by the company. Job Dissatisfaction: Employees monitor absenteeism of other employees. If these absences are allowed to go unchecked by management, they invariably lose respect for the company’s leadership. This may lead to overall dissatisfaction and could result in labor turnover if not addressed. Literature Review: There is a negative relationship of work related experiences with the absenteeism of an employee. If the firm pays a high wage, workers might interpret the firm’s behavior as a gift and react with positive reciprocity, i.e. they provide more work effort and are less absent (Akerlof, 2006).
- 6. Employee Absenteeism 6 Globerson and Ben-Yshai (2002) found that seniority was associated with lower absenteeism. Blau (2004) carried out a study which examined organizational commitment and job involvement as predictors of absenteeism and tardiness behavior. Vanden Heuvel and Wooden (1995) reported that married parents tended to be absent, regardless of their gender. Workers react with negative reciprocity and more absenteeism to low wages (Dohmen et al., 2006). Job satisfaction is negatively correlated with absenteeism (Winkelmann, 1999). Farrell and Stamm (1988) and by Steel and Rentsch (1995), is that women will be absent from work more than men. The meta-analyses of Meyer et al. (2002) and Mathieu and Zajac (1990), show that affective commitment is negatively related to employee absenteeism. Absenteeism and other withdrawal behaviors like lateness and personnel turnover reflect “invisible” attitudes such as job dissatisfaction or a low level of organizational commitment (Sagie, 2008). Globerson and Ben-Yshai (2002) found that seniority was associated with lower absenteeism. Schwarzwald (1992) found that service employees increased their absenteeism as a result of failure to get a promotion. Previous studies of absenteeism have established a negative correlation between wages and absenteeism as a proxy for work effort (Barmby et al., 1991; Brown and Sessions, 1996). Studies using individual data like household surveys analyse the impact of individual wages on workers’ absenteeism behavior (Allen, 1981a; Leigh, 1984; Drago and Wooden, 1992; Allen, 1996; Winkelmann, 1999; Barmby and Gesine, 2000). Lee and Newman (2010) found that the performance of disabled employees was rated from average to excellent.
- 7. Employee Absenteeism 7 Theoretical framework: Our primary interest variable is employee absenteeism and the independent variables contributing to absenteeism are health related events, stress, transport issue and job satisfaction. I.V D.V Health related events also contribute to absenteeism of an employee. Boles et al. (2004) reported that health risks may be associated with absenteeism. So the first hypothesis is H1 = There is a positive relationship between health related events and employee absenteeism. Stress contributes to employee absenteeism. According to James N. MacGregor, J. Barton Cunningham and Natasha Caverley (2008) it is revealed that stress and life events are related to absenteeism of an employee. H1 = There is positive relationship between Stress and employee absenteeism. Stress Transport issue Job satisfaction Employee Absenteeism Health Related Events
- 8. Employee Absenteeism 8 If the firm provides transports, workers might interpret the firm’s behavior as a gift and react with positive reciprocity, i.e. they provide more work effort and are less absent (RI Kids Count, 2007), H3 = There is a positive relationship between transports problem and absenteeism. Jobs satisfaction also contributes to absenteeism of an employee. Williams et al. (2004) reported that if employees are with own jobs then his number of absentees are low mean jobs satisfaction are associated with absenteeism. H1 = There is a positive relationship between jobs satisfaction and employee absenteeism. Research Design There are three types, they are 1. Explorative 2. Descriptive 3. Experimental Hypothesis methodology is used in the present study. Study Setting There are two type 1. Contrived 2. Non contrived We are used in this non contrived setting and in Non contrived we used field study Time Horizon And in the present study we are used a cross sectional / on short study because we are collected data one time only
- 9. Employee Absenteeism 9 Sample and procedure The population for the present study included 30 employees of Zari Taraqiati Bank Limited Islamabad. They were enrolled in different departments .The data was collected from 30 employees which include male and females of different levels through questionnaire on likert scale. Among which 58% were male and 42% were female. The sampling was non convenient sampling and the study was hypothesis testing. Data collection The questionnaire was an amalgamation of several instruments and associated measures on employee health, stress, transport, jobs satisfaction and absenteeism factors. Health-related events We asked a number of questions concerning objective events that were health related used by James N. MacGregor, J. Barton Cunningham and Natasha Caverley (2008). These were: I am healthy? has I frequently visit my doctor? Illness on health? I regularly do exercise: the job I have now probably affects my physical health? Stress We used five stress related question used by (James N. MacGregor, J. Barton Cunningham and Natasha Caverley, 2008), and asked respondents to please give that particular answer I work under a great deal of tension? I have felt fidgety of nervous as a result of my jobs? Problem associated with my job have keep me awake at night? I have felt nervous before attending meeting in the company? My jobs tends to directly affect my health?
- 10. Employee Absenteeism 10 Transport Respondents were also required to answer transport queries used by Karin Sanders (1998). Transport/conveyance facility is good? Transport fare is affordable? Transport has appropriate timings? Jobs satisfaction We used three Jobs Satisfaction question used by (Akerlof, G.A. and Yellen, J.L, 1990), and asked respondent to please give that particular answer I am satisfied with job? I like the type of work that I do? I will never leave this job on my own? Data Analysis The Variables and their Measurement This study examines the relations between employee absenteeism (dependent variable) and health related events, stress, transports, jobs satisfaction (independent variables). The measurements of these variables are explained below. Cronbach’s alpha of employee absenteeism is 0.784, which indicates a high level of internal consistency for our scale with this specific sample. The Cronbach’s alpha of health related event is 0.313, which indicates a high level of internal consistency for our scale with this specific sample, The Cronbach’s alpha of stress is 0.766, which indicates a high level of internal consistency for our scale with this specific sample Cronbach’s alpha of transport issue is 0.734 and Cronbach’s alpha of jobs satisfaction is .751 it also indicates a high level of internal consistency for our scale with this specific sample. After checking the reliability after checking the reliability we check the correlation of all variables and prove that the correlation of independent variables with dependent variable is
- 11. Employee Absenteeism 11 highly positive +1. After check the correlation we have find the regression line which tells us that if we change the 1 unit of beta how much change will in dependent variable. Results Respondent based on Age level Age Frequency Percent Valid Percent Cumulative Percent Valid 21-30 6 20.0 20.0 20.0 31-40 3 10.0 10.0 30.0 41-50 7 23.3 23.3 53.3 4 14 46.7 46.7 100.0 Total 30 100.0 100.0 The above table infers that, 20% belongs to the age group of 21-30 years, 10 % belongs to the age group of 22-40 years, 23.3 % belongs to the age group of 41-50 years and 46.7 % belongs to the age group of 51 & Above years.
- 12. Employee Absenteeism 12 Respondent based on Status level M.S Frequency Percent Valid Percent Cumulative Percent Valid Married 16 53.3 53.3 53.3 Unmarried 14 46.7 46.7 100.0 Total 30 100.0 100.0 Table shows that in respondent 53.3% was married and 46.7% was single.
- 13. Employee Absenteeism 13 Respondent based on salary level M.I Frequency Percent Valid Percent Cumulative Percent Valid 7000-10000 2 6.7 6.7 6.7 10001-13000 5 16.7 16.7 23.3 13001-16000 5 16.7 16.7 40.0 Above 16001 17 56.7 56.7 96.7 5 1 3.3 3.3 100.0 Total 30 100.0 100.0
- 14. Employee Absenteeism 14 Qualification Frequency Percent Valid Percent Cumulative Percent Valid Graduation 6 20.0 20.0 20.0 Master 19 63.3 63.3 83.3 PhD 1 3.3 3.3 86.7 Other 4 13.3 13.3 100.0 Total 30 100.0 100.0
- 15. Employee Absenteeism 15 N.F.M Frequency Percent Valid Percent Cumulative Percent Valid three 3 10.0 10.0 10.0 four 8 26.7 26.7 36.7 Five 11 36.7 36.7 73.3 Above five 8 26.7 26.7 100.0 Total 30 100.0 100.0
- 16. Employee Absenteeism 16 Kolmogorov-Smirnov Kolmogorov smimov of employee absenteeism sig level is .087 and it’s grater then 0.05 so data is normal because if in kolmogorov smirnov is >0.05 then data is normal if <0.05 data is not normal Health Sig. is the .140 and it is grater then .05 so health sig is normal. Stress Sig. is .005 it’s <.05 so stress data is not normal. Jobs satisfaction level is .019 it’s <0.05 so that is also not normal. Transport Sig. is .051 and it’s is a grater then 0.05 so data is normal Tests of Normality Kolmogorov-Smirnov a Shapiro-Wilk Statistic df Sig. Statistic df Sig. Employee.Absenteeism .149 30 .087 .914 30 .019 Health .140 30 .140 .932 30 .057 Stress .195 30 .005 .861 30 .001 JobSatisfaction .176 30 .019 .938 30 .080 Transport .159 30 .051 .938 30 .081 a. Lilliefors Significance Correction
- 17. Employee Absenteeism 17 Correlation Analysis Correlations Health Stress Transport Job Satisfaction Employee. Absenteeism Health Pearson Correlation 1 .461 * .222 -.140 -.004 Sig. (2-tailed) .010 .239 .462 .983 N 30 30 30 30 30 Stress Pearson Correlation .461 * 1 -.187 -.059 .187 Sig. (2-tailed) .010 .323 .758 .321 N 30 30 30 30 30 Transport Pearson Correlation .222 -.187 1 .213 .000 Sig. (2-tailed) .239 .323 .259 .997 N 30 30 30 30 30 Job Satisfaction Pearson Correlation -.140 -.059 .213 1 -.294 Sig. (2-tailed) .462 .758 .259 .115 N 30 30 30 30 30 Employee. Absenteeism Pearson Correlation -.004 .187 .000 -.294 1 Sig. (2-tailed) .983 .321 .997 .115 N 30 30 30 30 30 *. Correlation is significant at the 0.05 level (2-tailed). The correlation coefficient may range from –1 to 1, where –1 or 1 indicates a “perfect” relationship. The further the coefficient is from 0, regardless of whether it is positive or negative, the stronger the relationship between the two variables. Thus, a coefficient of .453 is exactly as strong as a coefficient of -.453. Positive coefficients tell us there is a direct relationship: when one variable increases, the other increases. Negative coefficients tell us that there is an inverse relationship: when one variable increases, the other one decreases. In this
- 18. Employee Absenteeism 18 table all variables have positive relationship with dependent variable mean employee absenteeism. Its mean that as the work related, health related and life related events increase then employee absenteeism will also increase. Sig. (2-tailed) - This is the p-value associated with the correlation. Sig value shows the error chances in social science. It should be less than 0.05. In results the sig value of Health is .09 which means that there is 9% error chance in results and the sig value of stress is 0.3 which shows the 3% error chances and the sig value of transport & jobs stisfaction is 0.9 & 0.1 N - This is number of cases that were used in the correlation. Because we have no missing data in this data set, all correlations were based on all 30 cases in the data set. However, if some variables had missing values, the N's would be different for the different correlations. Regression Analysis Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 4.093 1.384 2.958 .007 Health -.392 .374 -.236 -1.045 .306 Stress .369 .262 .310 1.410 .171 Transport .180 .203 .184 .887 .383 Job Satisfaction -.399 .221 -.348 -1.809 .083 a. Dependent Variable: Employee.Absenteeism
- 19. Employee Absenteeism 19 Sig. Health is .306 is greater than 0.05, so it shows that there is insignificant because if in coefficients Sif. Is <0.05 variable is significant if >0.05 variable is insignificant. Stress Sig. is .171 is >0.05, so it shows that there is a insignificant. Transport is .383 is greater than 0.05, so it shows that there is insignificant. Job Satisfaction Sig. is. 083 is >0.05, so it shows that there is a insignificant. T. Health t is -1.045 is less than 2, so it shows that there is insignificant because if in coefficients t value is >2 variables is significant and if t is <2 variable is insignificant. Stress t is 1.410 is greater than 2 it shows that there is in signification. Transport is .887 is less 2 so it’s insignificant. Jobs satisfaction is -1.809 is less than 2,so it shows that there is insignificant. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .401 a .161 .027 .76599 a. Predictors: (Constant), JobSatisfacation, Strees, Transort, Health This section presents the results of all the regression analyses, including the estimates of the regression coefficients indicating the direction and size of the conditional effects and interaction effects of independent variables on the employee absenteeism. In the table of model summary the R indicates the simple correlation, and R square indicates how much of the dependent variable, employee absenteeism, can be explained by the independent variable, Health, Stress, Transport and Jobs Satisfaction. We know that y=a+bx, in the table of coefficient 4.093 is constant alpha and its value is fixed. -0.392, 0.369, .180 and -0.399 is the beta and Health, Stress, Transport and Jobs Satisfaction are X respectively.
- 20. Employee Absenteeism 20 ANOVA b Model Sum of Squares df Mean Square F Sig. 1 Regression 2.817 4 .704 1.200 .0.022 a Residual 14.668 25 .587 Total 17.485 29 a. Predictors: (Constant), Job Satisfaction, Stress, Transport, Health b. Dependent Variable: Employee. Absenteeism As 0.022 is less than 0.05, so it shows that there is a significant difference in mean of independent variables. Discussion: This study show that there is a positive relationship of employee absenteeism with health related events, stress, transport issue and jobs satisfaction related absenteeism. All do not have strong impact on the dependent variable. All affect differently the absenteeism of employee. Amongst all work related variable will have more effect on absenteeism. Akerlof (2008) also prove that if work conditions will be in favor of employee then he will be less absent from the work. Winkelmann (2005) and Sagie (2009) also reported that work related experiences are related to employee absenteeism. Conclusion: Employees are being absent from the work due to unfair reward system, when they do not get the opportunity to promote. When there is no good relationship between coworkers and supervisors.
- 21. Employee Absenteeism 21 So organization must put his focus on the improvement of work related all activities and experiences to an employee. References: Cavarely, N., Cunnigham,J., and MacGregor. (2007). Sickness Presenteeism, Sickness Absenteeism and Health Following Restructuring in a Public Service Organization. Journal of Management Studies, 304-319. Caicedo, M.H., and Martensson, M.(2010). Managing and measuring employee health and wellbeing. Journal of Accounting & Organizational Change, Vol No 6(Issue No 4), 436- 459. Brown, G.D.A., Gardner, J., Oswald, A.J. and Qian, J. (2008), “Does wage rank affect employees’wellbeing?”,Industrial Relations, Vol. 47 No. 3, pp. 355-89. Barmby, T.A. and Gesine, S. (2000), “Worker absenteeism: why firm size matters”,Manchester School, Vol. 68 No. 5, pp. 568-77. Cohen, A., and Golan, R. (2007). Predicting absenteeism and turnover intentions by past absenteeism and work attitudes. Emarld Group, Vol No12(Issue No 5), 416-432. Pfeifer, C.(2010). Impact of wages and job levels on worker absenteeism. International Journal of Manpower, Vol No31(Issue No 1), 59-72. Rosenblatt, Z., and Shirom, A. (2005). Predicting Teacher Absenteeism by Personal Background Factors. Journal of Educational, Vol No 43(Issue No 2), 209-225. Sanders, K. (1998). Informal Networks and Absenteeism within an Organization. Computational & Mathematical Organization Theory, Vol No 4, 149-163.
- 22. Employee Absenteeism 22 Savery, L., Travaglione, A., and Firns, I. (1998). The links between absenteeism and commitment during downsizing. Personal Review, Vol No 27, (Issue No 4), 312-324 Sanders, K.(2003). Playing truant within organizations Informal relationships, work ethics and absenteeism. Journal of Managerial Psychology, Vol No 19(Issue No 2), 136-155. Wharton, A. S. (2002). Employees’ Use of Work-Family Policies and the Workplace Social Context. Social Forces, Vol No. 80(Issue No 3), 813-845. Clark, A.E., Frijters, P. and Shields, M.A. (2007), “Relative income, happiness and utility: an explanation for the Easterlin paradox and other puzzles”,Economic Journal. Dunn, L.F. and Youngblood, S.A. (1986), “Absenteeism as a mechanism for approaching an optimal labor market equilibrium: an empirical study”,Review of Economics and Statistics, Vol. 68 No. 4, pp. 668-74. Falk, A. and Knell, M. (2004), “Choosing the Joneses: endogenous goals and reference standards”, Scandinavian Journal of Economics, Vol. 106 No. 3, pp. 417-35.

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