Managing Employee Absences in CRE

Employee absences can significantly disrupt business operations in any industry, and commercial real estate (CRE) is no exception. Whether it's due to illness, family emergencies, or other unforeseen circumstances, absences can lead to project delays, missed deadlines, and decreased productivity. To mitigate these risks and ensure business continuity, CRE companies must have robust employee absence management plans in place. This involves establishing clear policies for sick leave, emergency leave, and remote work arrangements, as well as implementing cross-training strategies to ensure that critical functions can be performed even if key personnel are unavailable.

Importance of Employee Absence Management in CRE

The CRE industry is characterized by its dynamic nature, with professionals often working on multiple projects simultaneously and collaborating with various stakeholders. When employees are absent, it can create a ripple effect, impacting not only their individual responsibilities but also the overall workflow and project timelines. This can lead to:

• Project Delays: Absences can delay project completion, especially if the absent employee holds a critical role or possesses specialized knowledge¹.
• Missed Deadlines: Without adequate staffing, meeting critical deadlines can become challenging, potentially leading to financial penalties or reputational damage¹.
• Decreased Productivity: When colleagues have to cover for absent employees, it can disrupt their own work and reduce overall team productivity².
• Reduced Client Satisfaction: Delays and disruptions caused by absences can negatively impact client satisfaction and damage relationships.
• Increased Stress and Burnout: Employees who have to consistently cover for absent colleagues may experience increased stress and burnout.

In addition to these operational challenges, employee absences can also impact the safety and security of CRE assets. For example, during winter storms, severe winds can cause significant damage to buildings³. Having a business continuity plan that addresses potential employee absences is crucial to ensure the safety of personnel and property during such events. Similarly, organizations like the World Health Organization (WHO) emphasize the importance of guaranteeing the safety of staff, premises, and assets in their business continuity plans⁴. This highlights the need for CRE companies to consider the broader implications of employee absences, beyond just operational efficiency.

Furthermore, the Location's Cyber-risk Responsible Executive (CRE) plays a crucial role in IT recovery, which is an essential aspect of business continuity planning⁵. This underscores the importance of leadership involvement in developing and implementing effective absence management strategies.

By implementing effective employee absence management strategies, CRE companies can minimize these risks, maintain operational efficiency, and ensure the safety and security of their workforce and assets.

Key Components of an Effective Employee Absence Management Plan

Employee absence management refers to the processes involved in overseeing and managing employee absences from work. It...source The ultimate goal of employee absence management is to guarantee that the impacts of absences are minimized and that...source leave.

A comprehensive employee absence management plan should address various aspects of employee absences, including:

1. Clear Absence Policies

Having well-defined absence policies is crucial for managing employee absences effectively. These policies should outline:

• Types of Leave: Clearly define different types of leave, such as sick leave, vacation time, personal leave, family leave, and emergency leave.
• Eligibility: Specify eligibility criteria for each type of leave, including tenure requirements or other qualifying factors.
• Leave Entitlements: Outline the amount of leave employees are entitled to for each leave type, including accrual rates and maximum limits.
• Requesting Leave: Establish a clear process for requesting leave, including notification deadlines and required documentation.
• Approval Process: Define the approval process for leave requests, including who has the authority to approve or deny requests.
• Return-to-Work Procedures: Outline any procedures employees need to follow upon returning to work after an absence, such as providing medical documentation or attending a return-to-work meeting.

To present this information clearly and concisely, consider using a table format:

Note: This is a sample table and should be adapted to reflect the specific policies of the CRE company.

2. Absence Reporting Procedures

To ensure accurate record-keeping and efficient payroll processing, it's essential to have a clear and consistent absence reporting procedure. This should include:

• Notification Methods: Specify how employees should report their absence, such as phone call, email, or online system.
• Timelines: Define the timeframe within which employees must report their absence.
• Required Information: Outline the information employees need to provide when reporting an absence, such as the reason for absence and expected duration.
• Documentation: Specify any documentation required to support the absence, such as a doctor's note for sick leave.

Timely reporting of absences is critical for maintaining accurate leave balances and ensuring that payroll is processed correctly⁷.

3. Leave Tracking and Management

CRE companies need a system for tracking and managing employee leave. This can be done through various methods, such as:

• Manual Tracking: Using spreadsheets or other manual methods to record employee absences.
• Software Solutions: Utilizing dedicated absence management software to automate tracking and reporting.

Regardless of the method used, the system should allow for:

• Accurate Record-Keeping: Maintaining accurate records of employee absences, including dates, reasons, and duration.
• Leave Balance Monitoring: Tracking employee leave balances to ensure compliance with company policies and legal requirements.
• Reporting and Analysis: Generating reports on absence trends to identify potential issues and inform decision-making.

4. Communication with Absent Employees

Maintaining communication with absent employees is important for several reasons:

• Providing Support: Check in with employees to see how they are doing and offer support if needed.
• Monitoring Progress: Stay informed about the employee's expected return-to-work date.
• Managing Workload: Discuss any outstanding tasks or projects and make arrangements for coverage.
• Facilitating Smooth Return: Prepare for the employee's return to work and ensure a smooth transition.

5. Sick Leave Policy

Sick leave policies should address the following:

• Definition of Sick Leave: Clearly define what constitutes sick leave, including illness, injury, or medical appointments.
• Documentation Requirements: Specify any documentation required to support sick leave requests, such as doctor's notes or medical certificates.
• Paid vs. Unpaid Sick Leave: Outline whether sick leave is paid or unpaid, and if paid, specify the rate of pay and duration of paid leave.
• Sick Leave Accrual: If applicable, explain how sick leave is accrued, including accrual rates and carryover provisions.
• Use of Sick Leave for Family Members: Specify whether employees can use sick leave to care for ill family members.

In California, employers must provide and allow employees to use at least 40 hours or five days of paid sick leave per year⁸. Employers can choose to offer this leave using an upfront policy, where the full amount of sick leave is available at the beginning of the year⁸. Additionally, employers must provide updated paid sick leave posters and employee notices to comply with the latest legal requirements¹⁰. It's important to note that unused sick leave can be accumulated and rolled into the following year, providing employees with a valuable benefit¹¹.

6. Emergency Leave Policy

Emergency leave policies should cover:

• Definition of Emergency Leave: Clearly define what constitutes an emergency, such as unexpected family situations, natural disasters, or other unforeseen events.
• Notification Procedures: Outline how employees should notify their supervisors in case of an emergency, including contact information and reporting timelines.
• Leave Duration: Specify the maximum duration of emergency leave and any provisions for extending leave if necessary.
• Pay and Benefits: Clarify whether emergency leave is paid or unpaid and whether employees can use accrued paid time off for emergency leave.

7. Remote Work Arrangements

Remote work arrangements can provide flexibility for employees and help maintain business continuity during absences. When implementing remote work policies, consider the following:

• Eligibility: Define which roles or employees are eligible for remote work arrangements.
• Technology and Equipment: Ensure employees have the necessary technology, equipment, and internet access to work remotely effectively.
• Communication and Collaboration: Establish clear communication channels and collaboration tools to facilitate remote teamwork.
• Performance Management: Maintain clear performance expectations and monitoring mechanisms for remote employees.
• Data Security: Implement measures to ensure data security and confidentiality when employees work remotely.

8. Cross-Training Strategies

Cross-training employees is an essential strategy for ensuring business continuity in the face of employee absences. It involves providing employees with the skills and knowledge to perform tasks and responsibilities beyond their primary roles. This approach not only helps to cover critical functions when colleagues are unavailable but also offers several other benefits, such as:

• Maintaining Productivity: When employees are cross-trained, there is always another qualified individual who can step in to fill a gap, ensuring that productivity remains consistent¹².
• Increased Flexibility: Cross-training allows for greater flexibility in scheduling and task assignments, as employees can readily adapt to changing needs.
• Enhanced Employee Engagement: By providing opportunities for skill development and growth, cross-training can increase employee engagement and job satisfaction.

Effective cross-training strategies include:

• Job Shadowing: Allow employees to shadow colleagues in different roles to gain practical experience and understanding¹³.
• Mentoring and Coaching: Pair experienced employees with those in different roles to provide guidance and support.
• Online Training and Resources: Utilize online training platforms and resources to provide employees with access to learning materials and skill development opportunities.
• Job Rotation Programs: Implement job rotation programs to allow employees to experience different roles and gain a broader understanding of the business.
• Workshops and Training Sessions: Conduct workshops and training sessions to provide employees with specific skills and knowledge needed for different roles.

When implementing cross-training programs, it's important to prioritize training by department, as each department will have different needs and priorities¹⁴. Additionally, it's crucial to communicate the benefits of cross-training to employees, emphasizing the value of skill development and career advancement¹⁵. Cross-training can also increase internal mobility and aid in succession planning, providing long-term benefits for both employees and the company¹⁵.

By cross-training employees, CRE companies can create a more versatile and resilient workforce, minimizing the impact of absences on business operations.

Benefits of Effective Employee Absence Management

Implementing a comprehensive employee absence management plan offers numerous benefits for CRE companies, including:

• Reduced Costs: Effective absence management can reduce costs associated with lost productivity, overtime pay, and temporary staffing.
• Improved Productivity: By minimizing disruptions caused by absences, companies can maintain or even improve overall productivity.
• Increased Employee Morale: Clear absence policies and supportive leave arrangements can contribute to increased employee morale and job satisfaction.
• Enhanced Business Continuity: Having plans in place to manage absences ensures that critical functions can continue even when employees are unavailable.
• Improved Client Satisfaction: Maintaining operational efficiency and meeting deadlines despite absences can lead to improved client satisfaction.
• Reduced Legal Risks: Complying with relevant labor laws and regulations regarding sick leave and other types of leave minimizes legal risks.

Legal Requirements for Sick and Emergency Leave in CRE

CRE companies must comply with all applicable federal and state laws regarding sick and emergency leave. These laws may vary depending on the location and size of the company. Some key legal considerations include:

• Federal Laws: The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons¹⁶.
• State Laws: Many states have their own sick leave laws, which may provide greater protections than federal law. For example, California requires employers to provide paid sick leave⁸. In California, starting on January 1, 2024, the law requires employers to provide and allow employees to use at least 40 hours or...source
• Local Laws: Some cities or counties may also have their own sick leave ordinances.

It's crucial for CRE companies to stay informed about all applicable laws and regulations and to ensure their absence policies comply with these requirements. For example, Senior Executive Service (SES) members in government agencies have certain flexibilities regarding work schedules, highlighting the nuances of leave administration in different contexts¹⁷.

Benefits and Challenges of Remote Work Arrangements in CRE

Remote work arrangements have become increasingly common in the CRE industry, offering both benefits and challenges:

Benefits:

• Cost Savings: Companies can save on office space and other overhead costs¹⁸.
• Flexibility: Employees have greater flexibility in terms of work location and schedule¹⁸.
• Increased Productivity: Some studies have shown that remote work can lead to increased productivity²⁰.
• Improved Employee Morale: Remote work can improve employee morale and work-life balance¹⁸.
• Access to a Wider Talent Pool: Companies can recruit talent from a wider geographic area¹⁹.
• Focus on Collaborative Spaces: Remote work arrangements often lead to a greater emphasis on collaborative spaces within offices, fostering teamwork and innovation²¹.
• Positive Economic Impact: The rise of remote work can have a positive impact on the economic growth of local communities, as businesses adapt to the changing needs of the workforce¹⁸.

Challenges:

• Potential Oversupply of Office Space: Reduced demand for traditional office space can lead to oversupply and decreased rental rates¹⁸. This is further exacerbated by trends like overbuilding in countries like China, which can have global implications for the CRE market²².
• Need for Property Upgrades: Property owners may need to invest in upgrades to meet the demands of remote work, such as improved technology infrastructure¹⁸.
• Uncertainty Regarding Long-Term Viability: The long-term impact of remote work on the CRE market is still uncertain¹⁸.
• Maintaining Communication and Collaboration: It can be more challenging to maintain effective communication and collaboration among remote teams²³.
• Employee Isolation: Remote work can lead to employee isolation and loneliness²³.
• Encouraging Office Returns: Despite the benefits of remote work, CRE companies may face challenges in encouraging employees to return to the office. Investing in employee experience platforms and creating more engaging workspaces can be potential solutions²¹.

CRE companies need to carefully consider these benefits and challenges when implementing remote work arrangements.

Case Studies of Successful Employee Absence Management

While the research did not yield specific case studies focused solely on CRE companies, there are relevant examples from other industries and related commercial settings that offer valuable insights into successful employee absence management strategies.

One such example is Melin Homes, a housing association in the UK, which successfully reduced employee absences from 6.8% in 2010 to 2.33% in 2014²⁴. They achieved this by implementing a comprehensive approach that included a new sickness policy, an employee-driven healthy living program, and various other initiatives. Key elements of their strategy included:

• Clear Notification Procedure: Employees were required to notify their managers of absences promptly.
• Regular Contact with Absent Employees: Managers maintained regular contact with absent employees to provide support and monitor their progress.
• Return-to-Work Interviews: Conducted return-to-work interviews to understand the reasons for absence and provide necessary support. These interviews have been shown to contribute to a reduction in absence levels²⁵.
• Support for Mental Health: Offered support to employees with mental health problems.
• Manager Training: Provided training to managers on how to implement the sickness policy effectively.

These strategies helped Melin Homes improve employee health and well-being, reduce absences, and maintain operational efficiency.

Another relevant case study involves a retail store in northwest Florida that explored strategies to minimize absenteeism and increase productivity²⁶. This study highlighted the importance of analyzing absence patterns to identify trends and potential underlying issues. For example, the study found that absence patterns could be connected to shift patterns and weekends, suggesting the need for targeted interventions to address these specific challenges²⁷.

These case studies, while not exclusively from the CRE industry, demonstrate the value of proactive absence management strategies in improving employee well-being, reducing absences, and enhancing operational efficiency in commercial settings.

Conclusion

Employee absence management is a critical aspect of business continuity in the CRE industry. By implementing comprehensive plans that include clear absence policies, remote work arrangements, and cross-training strategies, CRE companies can minimize disruptions, maintain productivity, and ensure the smooth operation of their business. It's also essential for companies to stay informed about relevant legal requirements and to adapt their policies to the evolving nature of work.

The research highlights several key takeaways for CRE companies:

• Proactive Planning: Business continuity planning should involve organizing a team and compiling a plan to manage disruptions, including those caused by employee absences²⁸.
• Leadership Buy-in: Cultivating a top-down culture surrounding absence management is crucial for success, with leadership playing a key role in promoting awareness and compliance²⁹.
• Data-Driven Insights: Analyzing absence data can reveal patterns and trends, such as connections to shift patterns or specific times of the year, allowing for targeted interventions²⁷.
• Employee Well-being: Investing in employee well-being programs and providing support for mental health can contribute to reduced absences and improved productivity²⁴.
• Flexibility and Adaptability: The trend towards flexible work arrangements, including remote work, is likely to continue, and CRE companies need to adapt their strategies to accommodate these evolving needs²⁰.

By prioritizing employee well-being and implementing proactive absence management strategies, CRE companies can create a more resilient and successful workforce, ensuring business continuity in the face of unforeseen challenges.

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