MOD003463: Literature Review on Absenteeism at Wise - Case Study

This literature review addresses the issue of absenteeism within Wise, a London-based financial technology company. The review presents data on the impact of absenteeism on performance and profitability, including direct and indirect costs. Models and theories related to motivation and employee performance are discussed, highlighting the reasons for absenteeism, such as workplace harassment, family problems, and job hunting. The review also considers both the negative and potentially positive impacts of absenteeism, such as reduced productivity versus employee rest and skill diversification for coworkers. The review concludes by emphasizing the importance of monitoring, managing, and reducing absenteeism through proactive measures and fair policies, referencing various academic journals and books.

Undergraduate Major
Project Integrated Case
Study

Abstract
The company is facing issue of absenteeism within the workplace and hence, the
company is facing the issues in its overall performance of the company. An organization
dealing with continuous absenteeism can face issues with not only its performance, but also
the overall profitability as well. Transferwise is a financial technology company that is based
in London and offers services to transfer online money. An organization dealing with
continuous absenteeism can face issues with not only its performance, but also the overall
profitability as well.

Contents
Abstract................................................................................................................................................2
INTRODUCTION...............................................................................................................................4
Presentation of Data............................................................................................................................4
Presentation of models and theories...................................................................................................5
Discussion.............................................................................................................................................6
REFERENCES....................................................................................................................................8

INTRODUCTION
Transferwise is a financial technology company that is based in London and offers
services to transfer online money (Al Zadjali and Ibrahim, 2021). The company was founded
in the year 2010 and is headquartered in the United Kingdom. The company was previously
known as Transferwise, but is now known as Wise. The company is facing issue of
absenteeism within the workplace and hence, the company is facing the issues in its overall
performance of the company. An organization dealing with continuous absenteeism can face
issues with not only its performance, but also the overall profitability as well. It is important
for the company to analyse the overall situation and hence, overcome the same in an effective
manner. In the respective report, there is a literature review based on the respective company,
Transferwise. The literature review will include qualitative as well as quantitative data from
various sources such as journals, books etc.
Presentation of Data
When employees are absent, work doesn’t get performed. Even if replacements are
delivered in, possibilities are they received be as green as the absent employees they're
replacing. Absenteeism triggers a ripple impact for managers who've to spend time making
alternative arrangements, locating alternative hard work, and ensuring all critical tasks are
blanketed (Danasu and Tamilpulavendran, 2021). There’s also the time spent on schooling
brief replacements. Absenteeism can result in delivery delays to customers and lower service
standards that may harm the recognition. It is pertinent that techniques used to tune worker
absences and their prices consist of each direct and oblique expenses of absences, together
with wages/salaries, the fee of alternative people and additional time, and productivity loss
(e.g., co-worker productiveness loss when filling in for an absent worker). The extra correctly
worker absences are tracked and managed, the more successfully corporations can monitor,
plan and finances for this fee. Although it may be difficult for corporations to tune those
expenses, the impact to the bottom line of the industrial business enterprise can be extensive,
making it pertinent that companies have a method to efficiently song the costs associated with
employee absence (Verelst and et.al., 2021). Indirect fees due to productiveness loss tend to
be extra challenging to calculate because of the subjective nature involved in assessing the
productivity of an worker. Nevertheless, productiveness loss may be steeply-priced and ought
to be considered while planning and budgeting for worker absence. Absenteeism can bring
about delivery delays to clients and decrease carrier standards which could damage the

popularity. It is pertinent that strategies used to track employee absences and their costs
consist of each direct and oblique fees of absences, together with wages/salaries, the charge
of opportunity people and extra time, and productivity loss. The more efficaciously worker
absences are tracked and managed, the extra effectively businesses can reveal, plan and
budget for this charge.
Presentation of models and theories
Managers and employees can also regularly confuse them they are separate and
distinct ideas. Performance implies assessment after it takes place and therefore it suggests
the presence of a few form of measuring device (Darzynkiewicz, 2021). Motivation on the
other hand is best one among numerous psychological states that have an effect on overall
performance. For instance an engineer’s overall performance is pondered in the fine of his
designs the wide variety of patents he obtains and the customers pleasure with fee and overall
performance of his new product. While we might anticipate a noticeably inspired engineer to
produce fantastic merchandise that satisfy the desires of customers it might also be actual that
his overall performance might be stricken by many different elements except his motivation
degree (Wang and et.al., 2020). The need hierarchy has a tendency to parallel worker career
development. Early profession tiers are characterised by way of safety issues and gaining
knowledge of organizational values. After five years or so the worker’s situation shifts to the
established order of a professional identification within the company and in his selected
profession both varieties of reputation help to meet esteem desires (Hanno and Gonzalez,
2020). At the equal time that esteem desires become active the worker will pursue accelerated
autonomy through promotion and desire mission assignments. Increases in authority and
responsibility on the expected times on a profession path will help employees satisfy esteem
desires. Self-actualisation is energetic at some point of profession progress but it evolves in
scope.
The massive majority of agencies throughout all international locations and Europe
tracked the number of employee absences, with the US appearing to be slightly much less
possibly to music worker absences than the opposite countries/area studied. When they miss
work frequently, their performance is sure to go through, as they might have misplaced time
on projects, education and updates. All of which could cause low morale within the work
surroundings. Reduced productivity: With declining performance come required
productiveness in first-class and high-quality of labour. A high diploma of absenteeism and

turnover can cause serious troubles for corporations (Jeong and et.al., 2020). Absenteeism
hurts productiveness and costs cash. Not handiest can turnover cause productivity troubles,
however it outcomes in the loss of human sources that might not be effortlessly replaced.
Absenteeism refers to an employee's recurring absence from paintings generally intentional
and without any proper reason. It goes past any absences related to things like occasional
sickness, vacations, and different personal time. While a few absences here and there do not
usually pose a hassle, absenteeism can, particularly while an employee doesn't show as much
as work abruptly for prolonged periods of time.
Absenteeism is an especially tough hassle to address because there are each valid and
negative excuses for missing work. It can be very tough for employers to correctly monitor,
manage, and decrease absenteeism. Unless a employer requires a written excuse from a
medical doctor, for instance, it is able to be tough to decide if an employee is in reality ill
when lacking paintings. Occasional absences from paintings are inevitable human beings get
sick or injured, have to attend to others, or want time during business hours to handle
personal affairs. It is the recurring absences which might be most challenging to employers,
and which can have the best bad impact on coworkers. Because missed workdays have a
profound monetary impact on a organization's bottom line, it is useful for most organizations
to put into effect techniques to equitably display, reduce, and reply to absenteeism.
Discussion
Absenteeism can have an effect on man or woman productiveness. Simply positioned,
if someone works less, they may be likely to be much less efficient (Kim, Gee and Byrd,
2020). Employers need to take into account root reasons, which encompass burnout,
disengagement, as well as those that can require accommodations, which includes baby care
or infection. Reduction in productiveness because of much less workers. Obligations to pay
the profits or ill pay of absent people. Having to locate, educate and pay for transient cover.
The opportunity of reduced client pride. Some of the main reasons for absenteeism
encompass place of work harassment, own family-related problems, infection, and task
hunting. Absenteeism can result in better charges for employers. Other employees frequently
have to choose up the slack, which can also result in a drop in morale. Good attendance is
prime to the fulfillment of any enterprise. Poor attendance drains the morale of personnel
participants, increases costs and reduces employee engagement (Major III, 2020). It is also an
unnecessary drain at the time and energy of management. Absence may additionally have a

advantageous impact. The character can rest and their strain may be reduced. Co-people
enjoy more job variety and have the opportunity to increase new capabilities, in addition to
receive overtime pay for his or her additional responsibilities. Absenteeism is any failure to
document for or continue to be at paintings as scheduled, no matter the reason. This is
commonly unplanned, for instance, whilst a person falls ill, but can also be deliberate, as an
instance during a strike or willful absence. The key to this definition is that the person
changed into scheduled to work. This method that absenteeism does not include excursion,
personal go away, jury-responsibility leave, or different motives. Commonly used synonyms
of absenteeism include absence, illness, skipping, or taking depart.
Absenteeism inside the place of job is most usually measured the usage of an
absenteeism rate. This rate is the variety of absent days divided via the variety of available
workdays in a given duration. This absenteeism price is a key HR indicator. For instance,
excessive absenteeism can imply problems within the workforce or organizational subculture.
The time period absenteeism refers to failure to file to work. The definition itself tells the
failure of the agency method if the employee fails to follow the guidelines and requirements
of the corporation. Absenteeism is a extreme trouble in the administrative center, and it is
critical for companies to be proactive in searching out signs and symptoms of viable causes
of absenteeism and preventing it before it has a danger to begin.
Opponents of mandatory sick leave argue that it will in the end cost corporations extra cash
and lead to multiplied layoffs. In addition, combatants have worries that personnel will use all
their unwell days whether or not or now not they want them (Thomas and Hennum, 2020).
Advocates of any such circulate, but, argue that paid sick go away makes economic sense
because it will assist stop the spread of communicable illnesses within the workplace, ensuing
in fewer instances of absenteeism in the long run, and that sick employees can be able to
recover sooner. Absenteeism is an specifically tough hassle to address due to the fact there
are each legitimate and poor excuses for missing paintings. It can be very challenging for
employers to effectively reveal, manipulate, and decrease absenteeism. Unless a business
enterprise requires a written excuse from a health practitioner, as an instance, it may be hard
to determine if an employee is honestly unwell whilst lacking work. Poor attendance saps the
morale of personnel, fees employers overtime prices, and decreases worker engagement. Poor
attendance takes supervisory time and interest and regularly outcomes in disciplinary
movement. Use these five steps to encourage employee attendance at work. A high degree of
absenteeism and turnover can purpose serious problems for groups.

REFERENCES
Books & Journals
Al Zadjali, R.S. and Ibrahim, O.A., 2021. The impact of absenteeism in banking sector in
Oman. International Review of Management and Marketing, 11(2), p.23.
Danasu, R. and Tamilpulavendran, V., 2021. Sickness absenteeism among staff nurses
engaging in long nursing shift at smvmch Puducherry. TNNMC Journal of Nursing
Education and Administration, 9(2), pp.8-10.
Darzynkiewicz, R., 2021. School Based Telemedicine as A Novel Solution To Improving
Student Chronic Absenteeism In California.
Hanno, E.C. and Gonzalez, K.E., 2020. The effects of teacher professional development on
children’s attendance in preschool. Journal of Research on Educational
Effectiveness, 13(1), pp.3-28.
Jeong, W. and et.al., 2020. Association between presenteeism/absenteeism and well-being
among Korean workers. Journal of Occupational and Environmental
Medicine, 62(8), pp.574-580.
Kim, C.H., Gee, K.A. and Byrd, R.S., 2020. Excessive absenteeism due to asthma in
California elementary schoolchildren. Academic pediatrics, 20(7), pp.950-957.
Major III, F.M., 2020. Combating Chronic Absenteeism: Utilizing An Attendance
Intervention in Schools. Youngstown State University.
Thomas, P. and Hennum, Ø., 2020. Absenteeism and the new 10% ruling in Norway: A case
study. Power and Education, 12(1), pp.1-22.
Verelst, F. and et.al., 2021. Workplace influenza vaccination to reduce employee
absenteeism: An economic analysis from the employers’
perspective. Vaccine, 39(14), pp.2005-2015.
Wang, K.L. and et.al., 2020. The Changing Value of Skill Utilisation: Interactions with Job
Demands on Job Satisfaction and Absenteeism. Applied Psychology, 69(1), pp.30-
58.