September 4, 2025
When an employee takes PTO or a planned leave of absence, it might temporarily impact operations and productivity – but it’s something their employer can plan around. Absences start becoming a problem when an employee has a pattern of taking time off unexpectedly, which is called absenteeism.
Absenteeism isn’t just a violation of attendance policies, it’s a significant problem for employers and employees alike. When someone doesn’t show up for work, managers may have to rush to fill their shift, or other employees may have to cover their work for them. Over time, absenteeism creates a dissatisfied or even hostile work environment where lower productivity, decreased morale and higher costs are the norm.
Simply put, absenteeism impacts everyone in the workplace, and data shows that it’s not getting any better. So what’s driving this trend, and what can employers do to get ahead of it?
The current state of absenteeism
Human resources experts consider an acceptable absence rate, or the percentage of time an employee is absent from work, to be around 1.5%. In 2024, the national absence rate was 3.2%, up 0.10% from 2023. This increase in absences signals a growing challenge for employers across industries.
When employees are frequently absent, it takes a serious financial toll on employers. The CDC reports that absenteeism costs U.S. employers $225.8 billion annually, with Sedgwick data showing that lost productivity alone can reach $11,000 per employee each year. Beyond productivity losses, absenteeism also leads to operational downtime and forces employers to spend more on hiring, onboarding and overtime pay.
Absences today are also following a pattern. According to Sedgwick data, Mondays are the most common day for intermittent absences, with volume decreasing as the week goes on. Absence spikes are also common around major events and holidays. In fact, roughly 1 in 5 surveyed Americans reported planning to miss work the Monday after the 2025 Super Bowl. On that day, Sedgwick data shows that 9.5% of employees with an open intermittent absence case didn’t show up for work.
What’s driving absenteeism today?
There are many reasons why employees may unexpectedly miss work. Sickness and injuries remain the leading cause of absences, especially in industries with physically demanding roles. However, even in office settings, seasonal illnesses and chronic conditions are forcing employees to take time off work without advanced notice.
A lack of flexible work options and support systems is also contributing to absenteeism. When an employee struggles to find child care, needs to care for a loved one or has transportation issues, they may have to miss work that day if they don’t have a flexible work option. In 2024, more than 3.6 million absences in the U.S. were attributed to family or personal obligations. Sedgwick’s book of business in 2025 shows that 33.9% of leaves are for family reasons and 12.8% are personal, projecting 875,000 new family or personal leaves by the end of the year. This suggests that many employees today aren’t being given the support or flexibility they need to manage their life outside work — and it’s impacting their ability to show up.
Poor mental health is another key driver of absenteeism. Stress, anxiety and depression can significantly impact an employee’s ability to work consistently. Data shows that employees with poor mental health have nearly four times more unplanned absences within a year than others. And according to a Sedgwick study, 30% to 55% of employees with a mental health disability claim submit more than one claim in a 36-month period. Sedgwick also found that claims for mental health last 24% longer than the average claim. Together, these trends tell us that many employees aren’t getting the help they need during their leave — resulting in longer recoveries, higher relapse rates and more time away from work.
How employers can manage absenteeism
While employers can’t control what happens in their employees’ personal lives, they can implement strategies to support them and help them better manage the problems they may be facing. Here are some ways employers can help keep absenteeism under control:
- Have regular check-ins with employees: There are often red flags for absenteeism before the pattern starts. Having consistent, informal check-ins with employees can help employers build trust, identify signs of burnout or stress and offer support before an absence occurs.
- Equip frontline managers with training and resources: Managers are often the first to notice any attendance patterns with their employees. Giving them the right tools and guidance can help them spot signs of absenteeism and know how to respond to unplanned absences while maintaining team morale.
- Foster a culture of trust and flexibility: Employees with busy personal lives may benefit from flexible work options like remote work or alternative shifts. Additionally, offering mental health resources like counseling, peer support groups or colleague assistance programs can create a more supportive environment and help reduce absences.
- Partner with a third party administrator (TPA): It can be difficult to manage absenteeism without the right tools, support and expertise. Finding a trusted TPA to help track time off, identify absence patterns and plan for disruptions can help employers stay ahead of absenteeism.
Simplifying the complexity of absences
Absenteeism isn’t just a disruption for employers – it can be a signal that something larger is going on. With absenteeism tied to so many factors, it can be hard to identify its cause and know how to respond. That’s why employers partner with our team at Sedgwick to simplify their employees’ absences for them.
We work with employers to create comprehensive leave and disability management programs that help them stay compliant, reduce the impact of absences and maintain their workforces’ productivity. With mental health and well-being programs, return to work planning and accommodations support, we ensure employees get the help they need to return to or keep thriving at work.
Our technology plays a critical role in making this possible. With AI-powered tools, our examiners can quickly identify opportunities for early intervention, like matching employees with modified work options or connecting them with clinical resources. But more importantly, these tools help our examiners be powerful advocates, guiding employees through a complex recovery process with empathy and care. Our technology streamlines workflows so examiners can spend less time on administrative tasks and more time supporting those in need. This not only improves return to work outcomes for employees but stronger program outcomes for our clients.
Final thoughts
Absenteeism may be on the rise, but it doesn’t have to be a constant challenge. With the right strategies, resources and a trusted partner in place, employers can do more than just respond to absences – they can reduce them. By fostering a culture that supports well-being and flexibility, employers can empower their workforce to keep showing up, stay engaged and continue doing what they do best.
To learn how Sedgwick can help administer leave and manage absences for your organization, click here.
