Sick Leave Costing Employers: Case Study

Assessment 1: Sick Leave Costing Employers Case Study and Human Resource Management

Abstract

The paper has used the present issue in the Sick Leave Case Study and has discussed it using human resource management strategies. Talent management, ethical perspective, and AHRI model of excellent are applications in this paper. An organization can be sustainable if it adopts a win-win culture for employer and employees. Everyone should be responsible so that an organization can be successful and sustainable in the long run. The findings of the paper also reveal that organizations should focus on talent management and ethics across the board. An ethical culture and practices can bring fundamental changes to the behaviors of employees.

Introduction

Australia has costly implications for sick leave as employees tend to take them without allowed purpose. Sick leave should be the leave that one should get in case of illness, but it is not the case here. The case study shows that Australia Day is the most popular day to have sick leave. The tendency to take Monday as sick leave also indicates that employees want to prolong their weekend break. In simple, the case has shown that acceptable sick leave absenteeism should stand at 6.5 days a year in contrast to presently average of 8.6 days a year (Schermerhorn, 2016). It has triggered a severe concern for employers and organizations regarding talent management and ethical perspective related to the problem. The issue does not directly relate to the performance of individual employees. Instead, it’s connected with the ethics and responsibility of an employee. Organizations have to take the organization-wide approach and bring employees along with them to reduce the misuse of sick leaves.

Discussion

Talent management and ethical perspective relate to the problem of the unethical trend of taking sick leaves without any genuine reason. Literature in the human resource management field can address the issue because it has covered it.

 Talent management:

Talent management is the target of organizations because they have to ensure the workplace’s well-being. A talented workforce can remain with the organization if it has some essential measures taken from employees. Sick leave may not be for a genuine reason, but it is due to stress. Stress-related absenteeism should also be legitimate. In a study, researchers have proposed six elements for well-being that include a balance between work and life. It also relates to job security so that an employee does not have a fear of losing his job. If employers offer the best working conditions for employees, the tendency of sick leave would not be higher. Moreover, it can manage talent, as well (Robertson, 2016).

Human resource management has talent management as its top priority because it makes policies for retaining capable employees. A more flexible and autonomous work environment can eradicate many issues faced by employees. Organizations have to deal with the problems of employees if they do not perform well. Their layoffs and suspension should be in light of their performance; instead, the decision should follow genuine or fake leave. It is very appropriate and proactive to look at why employees are not communicating with the organization honestly (Saddozai et al., 2017).

Organizations and businesses should focus on the management of human resources, and it is much related to talented human resource management. More opportunities for work-life balance and greater autonomy of employees can do this work for employers because the satisfaction of employees should come first. Many theories and research studies on employee turnover and job satisfaction aim at talent management because they are strategies to keep employees in the organization. However, talent management is not without ethical and ethical perspectives. Attracting and retention of talent should not be at the cost of ethics, and it is the need of the hour for both employees and the employer.

Ethical Perspective:

The case has expressed the problem of sick leave absenteeism that proves to be costly for employers in Australia. No doubt, it is unethical, and employees should not take sick leave without a genuine reason. However, this ethical perspective should link to the above discussion on talent management. Employers and organizations should consider this aspect as to why employees tend to have leave. Stress management and increasing pressure on employees show the seriousness of the problem. Work-life balance is the right of an employee, and the employer must provide. Very few organizations offer a balance for their employees that puts the case at an alarming level. It is useful to take employee turnover and sick leave at a broader scale, and every factor should count. However, if an organization offers friendly practices to employees and facilities are enough for them, it is unethical to have fake sick leave (Zheng et al., 2015).

The above perspective goes in favor of employees that an employer should act ethically. However, employees should also be held responsible. Increasing absenteeism is a dangerous phenomenon, and there is little justification to take it ethically. Organizations incur costs because they have to run operations without all employees. The loss may be because of hiring more part-time staff. Ethical practices in a company’s culture may help reduce this tendency of employees. Theories of organizational culture and organizational citizenship behavior help employees become responsible and ethical. It takes time to encourage and promote these practices in corporate culture. Many companies have developed an employee-oriented culture, and it gives them confidence. Such practices also raise the level of sustainability in organizations that guarantees a prosperous future for organizations. However, an organization-wide plan is helpful; therefore, a model should apply across the organization (Weber, 2015).

Application of AHRI Model of Excellence:

In an article, the use of the Australian Human Resources Institute model has been discussed, and a discussion has helped how it adds value to human resources. The issue of sick leave and talent management may be covered and addressed through the model. The model takes the perspective of employees and their competencies. The effectiveness of the model is that it addresses the needs of Australian human resources. Researchers have researched as to how it increases efficiency in an organization. The distinguishing feature of this model is that it differentiates between behaviors and competencies. Therefore, organizations have to consider behavior and take measures to change them as per employees’ competencies. For instance, the case of sick leave absenteeism is behavior, but talent in an employee is competency. The AHRI model differentiates between these attributes of an employee. The application of the model is useful in the context of the above discussion (Mcdonnell & Sikander, 2017).

The model takes organizational capability at its center and culture, and change leader is the first tier after this core element. Organizational capabilities have to respond to corporate objectives and context, and employees have to perform in light of it. Ethics and business-driven practices shape employees’ behavior and expertise so that they can remain valid in the organization. The model has the right and practical application for employees in the Australian context and calls for taking measures suitable for employees. The problem of absenteeism and inappropriate behavior of employees needs attention and solution; therefore, the company should dedicate to solving the problem. The above sections of talent management and ethical practices may integrate into the model because they address changes in employees and employers. Australian organizations should take a comprehensive approach so that they can have a win-win situation. Otherwise, it may cost them high (Ross, 2013).

AHRI Model of Excellence

AHRI Model of Excellence: Source: https://www.ahri.com.au/about-us/model-of-excellence/

The above discussion has focused on mutual responsibility and a win-win scenario for organizations and employees. It was not easy to take this position because the practice of employees does not justify absenteeism. Employers should worry about employee absenteeism, but they have to consider creating and nurturing a work culture suitable for work. Human resources are the core resource of an organization, and organizations should not ignore this source. An increasing number of employees feel that their work environment is not friendly, as many studies suggest it. However, some organizations have invested in a work culture that makes employees engage and coordinate with each other. More autonomy and flexibility are the ingredients of such a culture that goes in favor of employees and the employer. The point taken in this paper is that employees and employers should understand each other so that they can work in line with organizational objectives. AHRI model can be a useful model to start with this aim because it has comprehensive elements to achieve human resources satisfaction and dedicated to the organization.

Conclusion

The paper concludes that a sick leave case study has revealed a problem that needs the urgent attention of employers in Australia. The focus of the case study is on employees and their behavior of misusing sick leaves. Facts and evidence in the case study give the impression that employees need to change their behavior. Their behavior has been affecting the profitability and sustainability of organizations. However, this paper has taken another perspective involving employees and employers simultaneously. Employers should work on talent management and should seek causes of misusing sick leave. Employees may find the absence of work-life balance, and they may choose sick leave to relieve stress. An ethical perspective also puts the employer responsible for making a professional and friendly culture for employees where they can work towards organizational objectives. Organizational citizenship behavior and corporate culture should be addressed with this aim. However, it should not be a justification for employees to keep taking sick leave, and they should also review their behavior. However, priority is there for the employer and their actions because they have to develop such an organizational culture. AHRI Model of Excellence can help organizations to achieve this for employees by integrating talent management practices and ethical perspective.

References

Mcdonnell, L. & Sikander, A., 2017. ‘Skills And Competencies For The Contemporary Human Resource Practitioner: A Synthesis Of The Academic, Industry And Employers’ Perspectives’. The Journal of Developing Areas, 51(1), pp.83-101.

Robertson, I., 2016. The 6 essentials of workplace wellbeing. Occupational Health & Wellbeing, 68(10), pp.18-19.

Ross, S., 2013. How definitions of talent suppress talent management. Industrial and Commercial Training, 45(3), pp.166-70.

Saddozai, S.K. et al., 2017. Investigation of talent, talent management, its policies and its impact on working environment. Chinese Management Studies, 11(3), pp.538-54.

Schermerhorn, J.R., 2016. Management. 6th ed. Wiley & Sons.

Weber, J., 2015. Investigating and Assessing the Quality of Employee Ethics Training Programs Among US-Based Global Organizations. Journal of Business Ethics, 129(1), pp.27-42.

Zheng, C., Molineux, J., Mirshekary, S. & Scarparo, S., 2015. Developing individual and organisational work-life balance strategies to improve employee health and wellbeing. Employee Relations, 37(3), pp.354-79.

You May Also Like

The deadline is near. Don’t worry. The Best Writer is here for Help.