“ … businesses monitor levels of employee absence …” which can lead to “… an atmosphere of hostility …”. This may lead to “Demotivation … signalled by a higher … level of absence …” (Preston 2006) If these statements are true, addressing the causes of absenteeism is very necessary. The monitoring of absence can be seen to lead to employee stress and that in turn to more absence.
There would also be other impacts on individual employee stress resulting from absence. Knowing that one of your team will not be there can mean you feel presured to "cover thier work". Being over worked can lead to stress and thus productivity issues. A stressed, unhappy, demotivated indiviual will not be performing to full potential.
Team targets can be created based on teams containing “…the right number of people with the right skills …”. (Preston 2006) Monitoring team targets, using “Quantitative standards …” (Preston 2006), can highlight underachievement due to absenteeism. When the people with specific skills aren’t available, that work may be covered by team members not suited to this area of work. This may lead to stress and underproductivity, as above or, that work may not be done.
Not meeting team targets can mean loosing bonuses, other wise called “[e]xtrinsic rewards …”. (Preston 2006) This can lead to team demotivation leading to productivity issues as it does with individuals.
When an employee is absent, “… costs are incurred …”. (Preston 2006) The business may have to incur "sickness pay" to the indiviual, if they are saying they are sick. From the businesses perspective rules should be put in place to be certain this sort of thing does not happen often. Also the business may have to pay for hiring other staff or paying overtime to cover the absentee’s workload. These costs may be due to “… the relationship between … [individual] performance … and … the business [being] linked.” (Preston 2006)
Businesses with absent individuals are not working to full capacity.
Absenteeism would make these costs and effect recurrent.