Published Articles

Originally Published in Tanning Trends (March, 2001)

Combating the 'Call-ins'

Enforcing a strict policy on absenteeism can make your employees hang up their hooky habits.

Like many small business owners, Jeff Davison bas had his fair share of absent employees. But after being left with a logistical nightmare every time an employee called in late one too many times, he decided to create a simple policy designed to take some of the pressure off him, as well as to teach employees a lesson about management. At Club Tan in Alexandria, Va., which Davison owns along with his wife, employees are responsible for organizing coverage of shifts they're unable to work. In addition, they have to contact Davison at least 24 hours in advance with any changes. By making his staff accountable for administering their own absence or tardiness, he has curbed over-all absenteeism.

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"The first time it's a note. The second time we give them a formal warning and the third time we sit down to discuss with them if they really want to continue to work here."
     -Jeff Davison, owner, Club Tan, Alexandria Va.

     Although Davison has found a successful solution to cope with this common problem, he is not alone in his frustration In addition to the aggravation it causes, last-minute absenteeism can stretch small business owners to their financial limit and reap havoc on their bottom line. In fact, according to the 2000 CCH Unscheduled Absence Survey, which polls 150 human resource managers across the country, the amount of money lost to absenteeism on a per-employee basis increased slightly from $602 in 1999 to $610 in 2000. CCH, a Riverwood, Ill., information services company, also found that unscheduled absenteeism can affect a small business's profit margin due to other factors, such as overtime pay for employees, hiring temporary employees and low morale. Small business owners, who are dependent on part-time employees, are often left between a rock and a hard place since the manner in which they handle a recurring problem might leave them scrambling to covershifrs and may put them on the frustrating hunt for a new employee. Unfortunately, it's uncommon to see employers accepting perpetual absenteeism or tardiness as simply a fact of life. But even in a tight labor market, with many salon owners eager to fill open positions, absenteeism shouldn't be ignored or simply accepted. There is good news: According to the CCH poll, the rate of no-shows dropped to its lowest level in 10 years in 2000. Still, to alleviate its day-to-day damage, business owners must take its potentially damaging effects seriously and approach absenteeism head on.

From Day One
According to small business expert Dennis Hoppe, president of Change Management Implementation, Inc., in Rochester, N.Y., combating employee absenteeism begins during the hiring process. In addition to spending the appropriate time evaluating qualifications, says Hoppe, it is beneficial to discuss the company culture, as well as absenteeism policies, during the initial interview stage. "How the candidate will fit the personality and culture of the shop is of paramount importance," commented Hoppe. Someone who fits both the personality of the owner and the culture of the existing staff and the customer base is more likely to both stay and be more content with their work, thus increasing their happiness and the probability of better attendance. Likewise, establishing a strict attendance policy that is communicated to employees from day one will help reduce last-minute absenteeism. Developing a policy is simple but keep in mind that rules are worthless if they're not on enforced. So just as you would with your policy on stealing, be sure to hold employees accountable when they're not following your guidelines for being absent or late. There are several types of policies that might work in any salon but there are two important factors to consider when developing a policy: It should be fair; it should work with your current staff and culture.

How do you get your employees to come to work? 1. Build teams, which creates inherent peer pressure 2. Confront employees one-on-one 3. Offer flex scheduling when possible 4. Practice an open-door policy on all issues 5. Look for win-win scenarios, not lose-lose 6. Fire when necessary to show the importance of attendance 7. Reward employees who play by the rules 8. Help employees follow their individual paths to success 9. Initiate an attendance policy and communicate it at the hiring stage 10. Help employees understand the business and the vital role they play Source: Dennis Hoppe

Davison of Club Tan has created a successful "three strikes and you're out" policy. "The first time it's a note," commented Davison. "The second time we give them a formal warning and the third time we sit down to discuss with them if they really want to continue to work here." Sharon Elliot, owner of California Sun in Troy, Mo., has a two-page list of rules, which includes a no-excuse policy on absenteeism, that she thoroughly explains during her initial interaction with a potential employee. Her policy - excluding legitimate absences - allots only one chance before termination. From experiences she has learned that informing candidates at the interview stage of what is expected of them and the potential consequences of not following the salon's policies helps weed out problematic employees early on. Since the policy is strict, she makes sure employees understand and appreciate it from the time of hire. "It lets them know from the beginning what I won't tolerate," Elliott said. "I used to be subtle but now I take a direct approach. This way they understand my policy and know that I mean business." But finding long-term employees eager to come to work isn't always easy -sometimes it's virtually impossible. But just because you're stuck hiring part time employees who are usually only in need of a few bucks before moving on to supposedly bigger and better things, doesn't mean your business has to suffer.

"Younger employees need to understand and have explained to them that despite the wages, this is an excellent training period for them," said Hoppe. The first step is communicating how the employee, and his or her actions, affects the overall business. By educating employees about the business and by building excitement about being a part of it, employees are more likely to feel a sense of obligation toward their job. In other words, it's not just a paycheck for a new outfit, but a serious position that - in the big picture will make the difference between a company's ultimate success or failure, as well as providing skills employees can bring to their next position.

Salon Culture
According to the CCH survey, how an employee feels about the workplace, about his or her position and about his or her employer plays a role in last minute absenteeism. Thus, company morale and a positive company culture could determine how often your under the gun to cover a shift. (The CCH survey found that the average rate of absenteeism at companies, with "good" to "very good" morale was 1.8 percent, while companies with "fair" to "poor" morale experienced a rate of 2.8 percent.) "Building and keeping employee morale high, with constant attention to the little things, is key to limiting absenteeism and turnover," noted Hoppe. "Money is rarely a major motivator. Many studies have shown that a sense of belonging to a successful and well run organization is much more important to the average employee." One way to boost morale is to encourage a team spirit through employee meetings, group goals, strategic bonding activities and absenteeism policies that force employees to interact, deliberate and count on each other. Davison of Club Tan has found that his policy, which encourages employees to deal with one another when scheduling an absence, helps to naturally create a team environment. Subsequently, employees are taught that their actions affect other employees as well as the overall business - not to mention the invaluable lesson they receive in the ancient art of give and take. "I encourage my employees to work together to alter schedules," said Davison. "This way the responsibility doesn't always fall on the owner. They negotiate with each other." Davison's system places the burden on employees who must establish relationships with other staff members, as well as follow guidelines. By creating an environment of dependence. Davison encourages a team partnership because all staff members see themselves as an important part of the machine. It takes some of the pressure off Davison and decreases employee absenteeism since staff usually feels a stronger sense of responsibility to the company. (Of course, it's also harder than just calling in, which helps.) Additionally, the freedom to independently alter hours is a popular benefit for employees who often take part in other activities and have many scheduling conflicts. Luella Gustafson, owner of two Electric Beach Tanning Centers in Iowa, controls absenteeism by ensuring her employees have a true sense of purpose. Without it, according to Gustafson, employees tend to not take their positions seriously, which inevitably leads to increased abuse of policies. In addition to educating them on salon responsibilities and the significance of their job, she also tries to explain the future benefits of the many skills they will learn during employment at the salon. "I try to tell them that their work ethic is something that will follow them forever," said Gustafson. "And that the sales and people skills they learn here will be beneficial to them for the rest of their lives." Creating leadership opportunities is also a surefire way to increase company morale, as well as to motivate a young staff. "Often even a high school student, if treated properly, can become the pacesetter and leader that the others will follow and emulate," said Hoppe. "Pick someone who shows leadership qualities and work with them to hone their skills, even if you know they will be leaving in a year or two. Immediately begin the same process with a newer, incoming employee to fill that position in the future." Hoppe maintains that the good attendance record of this positive example will have a tremendous impact on the behavior of others. Company culture is often a reflection of how employees are compensated. The fact that salons are often plagued by high employee turnover could signal a lack of initiative in creating a positive work environment. According to Hoppe, this has little to do with how much an employee makes per hour and everything to do with how much he or she likes coming to work. Regardless of whether an employee intends on remaining long term, recognizing and communicating the significance of each and every employee - part-time or full-time - is essential in eliminating absenteeism problems. "A supermarket chain here in Rochester, NY, is recognized every year as a top-20 leader in US companies related to employee morale (not to mention profits)," commented Hoppe. "Employees rank it as the top employer in the area and it has nothing to do with wages. They retain employees because they recognize the value of an employee and pay attention to all of the little, often-intangible things. They have an amazing amount of boomerang employees who come back to managerial positions after college."

Solutions
Many salons offer incentives to encourage employees to come to work every day and on time. The most common are: allowing employees to cash in unused sick days for prizes (movie tickets, gift certificates, monetary rewards, etc.); building up free days for attendance or some type of bonus pay structure. Although rewards for reduced absenteeism can work in some instances, the results are often short lived. If you decide to instate some type of incentive program, be sure to design it around your current staff to increase the chances it will have some type of effect. It might be beneficial to allow employees to develop it themselves based on set guidelines that you could provide. Rewarding employees on a daily basis, on the other hand, for good behavior can reap nothing but positive results and can affect absenteeism. By recognizing employees who go above and beyond what is expected of them, employers will motivate the entire staff to do the same. Giving employees prizes for coming into work on time or for having a perfect attendance record can alienate those employees with legitimate excuses and can send a mixed message, since giving the appropriate notice when late or absent is actually a part of their job. Hoppe believes that showing compassion and appreciation for all employees by giving them individual attention in the form of compliments and continued training could reduce absenteeism. Another solution is adding a bit of flexibility to how you approach employee time off. In part-time positions, many employees are unable to take time off, let alone receive any paid personal days. By practicing a liberal policy, which includes being supportive of other obligations your employees may have, employees will develop a sense of obligation. "In my last real-life job in the late 1980s before going into my current practice, I was often gone for extended periods," remarked Hoppe. "It was imperative that my staff knew what and how to do everything required in my absence. I would give time off when things were slow and be open to requests for extras when business permitted it. In return, if a computer went down five minutes before closing, I never even had to ask them to stay - they just did it. "One day off for an employee really costs me nothing since the other members of the team filled in to continue this privilege they enjoyed. It was a fair trade in my favor for their support when it was required." This doesn't mean treating being absent as a "right" or a "benefit" but considering some type of flextime might provide a mutually rewarding situation. Your policy, however, should state that 100 percent attendance, as well as coming to work consistently and on time, is desired. But providing leeway when it's appropriate will increase the changes that employees will repay the favor when necessary and feel obligated to come to work instead of nursing a hangover or watching their favorite soaps. Since there are always legitimate reasons for employee absenteeism - although it can be significantly reduced - it is a dilemma salon owners will continue to face. But as this article demonstrates, keeping absenteeism at a minimum simply means setting, communicating and enforcing policies that are both fair and effective. Keep track of all absences and if employees aren't able to follow your set policy there should be no hesitation in terminating employment. Regardless of your size, establishing your game plan for combating absenteeism is a vital element in reaching the success for which you've worked so hard.

Dennis Hoppe is President of Change Management Implementation, Inc. in Brockport, NY. He has been a small business advisor to owners of hundreds of companies since 1989. Visit his web sites at www.dhoppe.com and www.hmcexecutivecoaching.com, or call him at 800-724-3525.