Impact of Employee Absenteeism on Employee Performance in The Retail Sector: An Empirical Study

Abstract

Absenteeism can be more than just lost working days – it can be a hidden cost of time, productivity and morale in an organization. This study aims at understanding the effect of employee's absenteeism on the performance and efficiency of employees in the retail industry of consumer electronics and home appliances. It underscores the impact of frequent absences on the business, such as lost productivity, higher expenses, diminished team collaboration, and reduced customer satisfaction. The research explores various types of absenteeism, planned, unplanned, approved, and unapproved, revealing impacts on employers and employees and on consumers and the broader economy. The results highlight the importance of absenteeism as a symptom of company culture, employee engagement and support mechanisms. Solving it means more than enforcing policies; it means creating a positive relationship, treating everyone fairly and using supportive practices to keep employees committed and present. In summary, the need to reduce absenteeism is vital to maintaining growth, maintaining the organization's reputation, and maintaining organizational competitiveness.