Tales from Trenches: Lessons from the HR and ER Frontlines
By Mark A. Lema, MHR, SPHR, SHRM-SCP.
At one of our client organizations, employees raised a legitimate concern — annual raises of only 3% simply weren’t enough to match rising costs. Leadership agreed, but the numbers didn’t lie. Overtime pay, constant recruiting, and the hidden toll of chronic absenteeism were quietly consuming the very funds that could have gone toward higher wages.
The Cost to the Company
Absenteeism is one of the most underestimated financial drains on any organization. Every unplanned absence triggers a domino effect — shifting workloads, last-minute schedule changes, reduced productivity, and escalating overtime. The Society for Human Resource Management (SHRM) estimates that unscheduled absences cost employers $3,600 per hourly employee and $2,650 per salaried worker annually. These costs stem from overtime, temporary staffing, lower output, and employee turnover. Over time, absenteeism becomes a structural expense that eats away at profit margins and growth potential.
The Cost to Employees
Those who do show up consistently pay the price in other ways. They cover extra shifts, work longer hours, and experience physical and emotional fatigue. Burnout grows, morale drops, and teamwork suffers. Over time, loyal employees feel unfairly burdened — leading to frustration, resentment, and eventual turnover. The cycle feeds itself: absenteeism causes stress, stress causes more absences, and everyone loses.
The Cost to Customers and Quality of Service
Absenteeism doesn’t just stay inside the organization — it reaches your customers. When key employees are missing, deadlines slip, service quality declines, and errors increase. In service-oriented industries, clients feel the difference immediately — slower response times, inconsistent experiences, and decreased satisfaction. For manufacturing or production environments, it can mean missed deliveries, quality defects, or compromised safety. Ultimately, absenteeism erodes customer trust and reputation — the very assets companies work hardest to build.
One of our clients, a growing manufacturing firm, saw this firsthand. Chronic absences forced constant overtime and temporary hires, which led to quality issues and shipping delays. Customers began noticing inconsistencies, and the company’s reliability suffered. The leadership team wanted to offer better raises, but their budget was being drained by absenteeism-related costs. Once LAAHR helped implement a structured attendance and mitigation strategy — including policy reinforcement, supervisor coaching, and wellness programs — absenteeism dropped 25% in a year. Quality improved, rework decreased, customer complaints fell by half, and for the first time in years, the company had enough savings to fund larger raises and retention bonuses.
Breaking the Cycle
Addressing absenteeism isn’t just an HR task — it’s a business strategy. A strong attendance management program fosters accountability, fairness, and stability. It protects productivity, improves service consistency, and gives organizations the flexibility to reward employees properly.
At LAAHR, we partner with businesses to design customized attendance and absence mitigation programs that strengthen workforce reliability, boost morale, and protect profitability — ensuring that the people who show up every day can see their dedication reflected in the company’s success.