Absence Tracking – Effectively Managing Employee Absences

What Is Absence Tracking? A Clear Definition

Absence tracking refers to all company measures aimed at systematically recording, analyzing, and ultimately reducing employee absences due to illness or other reasons. A well-structured employee absence tracking system helps minimize costs associated with unplanned absences while improving productivity and employee morale. 

The Importance of a Systematic Approach to Absence Management

A structured absence management system enables companies to identify and understand the root causes of employee absences. While occasional sick days are normal, recurring absences should prompt further analysis to uncover underlying reasons.

For example, if a particular department shows high absenteeism rates, companies should evaluate factors such as workload distribution, overtime levels, and vacation policies. Are employees overworked? Has the team recently undergone major changes? Addressing these questions helps HR professionals implement targeted solutions.

Key Objectives of Absence Tracking

When tracking and analyzing absences, companies should focus on these key goals:

• Reducing absenteeism due to illness (corporate health management)
• Minimizing non-health-related absences (e.g., conflicts, excessive workload)
• Enhancing employee motivation (active engagement)
• Improving workforce management and leadership strategies

Types of Employee Absences

Employees may be absent from work for various reasons—some are understandable and manageable, while others may indicate deeper organizational issues. HR professionals need to differentiate between the most common absence types to address them effectively. 

Health-Related Absences

Absences due to physical or mental health issues (e.g., flu, chronic illnesses) are the most frequent type in most companies. While seasonal flu outbreaks are common, the rise in mental health-related absences (e.g., burnout, depression) presents new challenges.

A recent REHADAT study found that mental health-related absences have increased significantly, with an average duration of 28.1 days per case. When such trends emerge, HR professionals must handle them with sensitivity and implement supportive measures.

A comprehensive absence management strategy should also differentiate between "general sick leave" and "work-related illness." In other words, are employees simply unwell, or is work negatively impacting their health?

Business-Related Absences

Business-related absences include scenarios such as short-time work or operational shutdowns. Employees generally have no control over these situations, and they often stem from economic challenges or restructuring efforts.

Companies facing these issues should identify the root causes and create a structured plan to navigate the situation effectively.

Personal Absences

Employees may also be absent due to personal or family-related commitments (e.g., medical appointments, caregiving responsibilities). While these absences are usually short-term, flexible work arrangements such as remote work or flexible working hours can help mitigate their impact.

Unauthorized Absences

Unauthorized absences occur when employees leave the workplace without prior approval or fail to report to work altogether. These cases should raise concerns for HR managers, as they may indicate deeper employee dissatisfaction, lack of engagement, or workplace conflicts.

A structured absence tracking system can help HR teams monitor and address these issues proactively, ensuring a supportive work environment while discouraging absenteeism. 

Managing Health-Related Absences in Germany and Switzerland

Employee absence policies differ by country. Below is a summary of key regulations in Germany and Switzerland as of January 2025:

Germany

• Continued Pay Act (EFZG): Employees are entitled to full salary continuation for up to six weeks in case of illness (§3 Sec. 1 EFZG). Employers must also comply with deadlines for electronic sick leave certification and wage replacement payments.
• Medical Certificate Requirement: Employees must submit a medical certificate no later than the fourth consecutive sick day (§5 Sec. 1 EFZG). This process is now digitized via electronic sick notes (German: eAU).
• GDPR Compliance: Employers cannot request or store employees' medical diagnoses, as health data is strictly protected under GDPR (Art. 9 GDPR).

Switzerland

• Swiss Code of Obligations (OR): Employers must provide continued pay for a "reasonable period," depending on an employee's tenure (Art. 324a OR). A medical certificate may be required from day one.
• Swiss Data Protection Act (DSG): Health-related information is considered highly sensitive, and employers may only collect the minimum necessary absence data.

Absence Management – Preventive Measures

Building on the previous points, companies that aim to sustainably reduce internal absenteeism should take a structured and systematic approach. The following steps serve as a helpful guideline.

Tracking Employee Absences

Companies should track in detail why employees are absent. Why do they not show up for work, or why do they leave early? It is crucial to differentiate between the following types of absences:

• Health-related absences without workplace connection (e.g., common cold, personal health conditions)
• Work-related health absences (e.g., occupational accidents, poor working conditions, work-related illnesses)
• Absences due to lack of motivation (e.g., absenteeism, dissatisfaction with work environment, colleagues, supervisors, or job conditions)
• Other absences (e.g., environmental factors, personal commitments, etc.)

For an effective absence tracking system, it is beneficial to define and systematically categorize these types of absences. Only by correctly assigning the reasons for employee absences can HR teams implement appropriate measures and solutions.

Analyzing Absence Patterns

Based on the tracked absence data, companies should assess whether specific patterns emerge. The following factors should be examined:

• Duration of absences (short vs. long-term)
• Age of affected employees (younger vs. older workforce)
• Length of company tenure
• Absence distribution by department
• Seasonal trends in absences

Additionally, structural or personnel changes that may have contributed to increased absences should be considered. Were departments merged? Did a key employee leave? Did the company receive a sudden influx of projects? How has the workload within teams evolved? Identifying such trends allows HR to address absence-related challenges proactively?

Assessing Workplace Conditions

The work environment plays a crucial role in employee productivity and well-being. Ergonomics at the workplace is now recognized as a fundamental pillar of good and healthy work conditions. Companies should ensure that employees’ workspaces include the following:

• Height-adjustable desks
• Ergonomic chairs
• Adjustable monitors
• Comfortable room climate
• Sufficient lighting
• Noise reduction solutions (e.g., soundproof partitions)
• Alternative: Quiet areas for focused work
• Break rooms & relaxation spaces

This aspect focuses specifically on physical working conditions. The better an employee’s immediate work environment, the easier it is for them to remain productive and engaged.

Evaluating Work Schedules and Flexibility

A smart absence management strategy should also include a critical review of rigid work schedules. Companies may find that a significant portion of absenteeism stems from inflexible attendance requirements.

The work schedule should ideally align with employees' individual life circumstances. Offering flexible work models—ranging from basic flextime arrangements to trust-based working hours and various part-time options—can help improve work-life balance and reduce absenteeism.

Remote work policies, hybrid work, workations, and similar models allow employees to take greater control over their schedules. This can reduce commuting times, lower stress levels, and enable employees to manage personal responsibilities, such as caregiving for family members, more effectively.

Additionally, companies in shift-based industries should consider modern workforce planning tools. Employee self-service software allows employees to swap shifts among themselves, ensuring that their preferences and needs are better integrated into the scheduling process. This approach can also help create healthier and more ergonomic shift schedules, ultimately reducing absenteeism and improving employee satisfaction.

Employee Communication

Employee conversations are a valuable tool—they give staff the opportunity to voice concerns and share feedback. Regular feedback discussions are essential for managers to gain insights into the overall workplace sentiment, whether at an individual or team level.

Ideally, such conversations lead directly to actionable solutions that support employees. However, sometimes it is enough for employees to know that their concerns are heard and taken seriously. Simply feeling acknowledged can already contribute to a reduction in absenteeism.

Establishing Corporate Health Management

A corporate health management program helps employees stay physically and mentally fit. This ranges from promoting healthy nutrition and maintaining smoke-free workplaces to team-building events and individualized coaching sessions.

For companies, a balanced approach that combines larger initiatives (e.g., vaccination programs) with smaller efforts (e.g., providing fresh fruit in the office) can foster a healthier and more positive work environment.

Key components of a corporate health program include:

• Strengthening team cohesion through company events
• Providing healthy snacks such as fresh fruit and vegetables
• Implementing fitness and wellness initiatives (e.g., corporate wellness days, back training, movement programs, or team sports)
• Encouraging physical activity (e.g., subsidized gym memberships, allocated time for sports activities)
• Supporting mental health through coaching, mental health programs, or access to anonymous psychological counseling

To ensure that health initiatives are effective, companies should conduct regular employee surveys on workplace well-being. This allows HR teams to assess whether existing initiatives are well received and if adjustments are needed.

Coaching leaders

Employee satisfaction—and ultimately, company success—depends heavily on strong leadership. Managers must be able to provide clear guidance without resorting to micromanagement. They need to recognize when employees require motivation or simply need someone to listen.

A structured absence management strategy should therefore consider what managers need at different stages of their careers to fulfill their roles effectively. Essential leadership development measures include:

• Training and workshops on leadership and delegation
• Awareness programs focused on mental health challenges and conflict resolution
• Workshops on effective communication and setting clear goals
• Guidelines for handling difficult employee conversations
• Understanding different leadership styles and how to apply them effectively

Managers must be equipped to conduct both spontaneous employee check-ins and structured return-to-work interviews for employees who have been absent for an extended period. The more effectively this is done—and the more consistently the company communicates a unified approach—the more employees will feel heard, valued, and supported, both by their direct managers and by the company as a whole.

Absence Management with Software – The Future of HR

Implementing a comprehensive absence management strategy within a company is a long-term and complex process. For this reason, HR professionals should leverage powerful and digital absence tracking solutions from the start. These tools streamline processes and provide data-driven insights to reduce absenteeism effectively.

• Accurate absence tracking: Various tools allow for precise tracking and analysis of employee absences. They also help identify recurring patterns, enabling businesses to better understand the root causes of absenteeism and implement targeted solutions.
• Reports & dashboards: Dedicated absence tracking software enables HR teams to generate custom reports and dashboards, offering valuable insights into company-wide absence trends. This allows businesses to detect early warning signs and take proactive action.
• Seamless integration: By connecting multiple HR systems, absence tracking solutions provide a comprehensive overview of employee attendance. These tools can be integrated with workforce management software, ensuring that all critical personnel data is centralized in one place.
• (Partial) process automation: Automated workflows ensure that responsible stakeholders are notified immediately—for example, when employees request time off. If an employee exceeds a predefined absence threshold, managers receive alerts, allowing them to implement preventive and employee well-being initiatives when necessary.