Presence of absence: investigating the determinants of absenteeism within the company operations of the Human Resource Management Department 6

Business Research: (BSBA major in Operations Management) - Pamantasan ng Lungsod ng Maynila, 2023 56

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1.1 Background of the Study In the second quarter of 2023, the Philippines recorded its highest employment figures, with 48,058,000 individuals gainfully employed. Over the past few years, the number of people with occupation in the country has been on a consistent rise. The employment rate in the Philippines for March 2023 was calculated at 95.39%, surpassing the 94.2% from the corresponding period in the previous year (News Releases - PSA: PH March 2023 Employment Rate Posts 95.3% Increase, n.d.). Employee attendance has always been important to any company operations everywhere, attendance determines the employee's work dedication and enthusiasm, and it is also one of the factors considered in the payroll to compute the employee's salary paycheck for the month. On average, an employee in the Philippines works on a five-day, eight-hour shift for most of any given profession, barring overtime and employee substitution in case of unexpected circumstances. Given the substantial workforce, it is natural that some workers may experience occasional absences for various personal reasons. In addition, social expectations set the tone for the management in respect to their employees in relation to their absences, particularly in a normative or ethical perspective. They underscore employee responsibility to the individual-level as a way to gauge individual employee absenteeism in the workplace to set the expectation (Gosselin, 2018). Within the Human Resource Departnent, which focuses on employee management more than other departments, absenteeism has emerged as a significant concern for enterprises operating across various industries. Absenteeism presents a significant challenge affecting individuals, organizations, and even broader communities. It is a pervasive issue in the workplace that disrupts work schedules, places added burdens on colleagues, diminishes productivity and efficiency, and lowers employee morale (Chaudhary, n.d.). Every employee has to miss work from time to time; on occasion, personal matters must be attended to during working hours. While it is not required that businesses provide time off from work either paid or unpaid, most do have policies that allow employees some time off for excused absences (Firstup, 2022). However, when those days off become too frequent, it becomes a problem and is referred to as absenteeism. This could indicate that the organization and work environment require some changes before the activity influences the workforce's availability and productivity, as well as the company's profitability. On top of that, absenteeism is a big problem for most companies. According to SHRM (2023), the big consequence of absenteeism affects the organizations more when productivity is lost. It added that the cost of employee absence is usually misunderstood, because it is sometimes seen as hard to measure and low valued because its monetary cost is included in the payroll expenses, and it is not that expensive. Nonetheless, if these small expenses have been accumulated in the long run, then it will be a big cost of expense for the company and these are the primary reasons that company management needs to be cautious of, so the absenteeism crisis can be controlled in their operations. Therefore, understanding the factors linked to absenteeism is of most importance to businesses aiming to develop comprehensive strategies that not only ease its effects but also promote a healthier and more productive workplace. Absenteeism is defined as the habitual or intentional failure to attend work (Vreede, 2023). It is the term used to describe a situation in which an employee fails to report for work as scheduled without prior notification to their employer. When an employee misses their work responsibilities and does not communicate their absence to management, they are categorized as absentees (Chaudhary. n.d.). However, there are also absences that are considerable for the management, and sometimes employees can also be paid while being absent. This absence is called leave. There are a lot of types of leave in the Philippines such as Annual Vacation Leave, Maternity Leave, Sick Leave, and other types of leave. According to the Labor Code of the Philippines, employers are not required to give employees standard vacations. However, employers can give service incentive leaves, which are five (5) days of leave per year, and it can be called Annual Vacation Leave. In addition, Chaudhary (n.d.) stated that absenteeism holds a significant place in the field of industrial relations, and it calls for a thorough examination of various crucial aspects. Consistent absenteeism often serves as an indicator of employee dissatisfaction with their workplace. This dissatisfaction can be attributed to factors such as perception of management, the quality of supervision, the attitude of supervisors, the difficulty of job roles, or the nature of the tasks. The reasons behind absenteeism may vary, including employee illness, transportation challenges, or the fulfillment of religious obligations. It is the worst nightmare of every owner or manager. When employees are frequently absent from work, it can cause disastrous consequences for both individuals and organizations. This can lead to decreased productivity, as the work may not be as efficiently accomplished in the absence of co-workers. For that reason, analyzing absenteeism among employees is pivotal for enhancing productivity for both the workforce and management. With regards to this study, it is critical for Human Resource-based operations to explore the root causes of absenteeism. A variety of circumstances, including health issues, work-related stress, personal challenges, and other variables, might have an impact on employee attendance. This study sought to explain the various factors contributing to absenteeism among average employees within the company operations of the Human Resource Department, all while it addressed the effects of such not only in their attendance records, but also in their performance as well. Additionally, providing insights into how employers might mitigate the consequences and build a more pleasant work environment. Hence, understanding these underlying challenges and developing plans to solve them can help operations within Human Resource Departments increase productivity, employee well-being, and overall success in this dynamic and ever-changing urban environment. The objective of the researchers was to make a satisfactory gauge and assessment on the factors of absenteeism in a city that is populated and has a considerable number of company-oriented employees by having this study focused on the Human Resource Department.

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