A Case Study Examining the Effectiveness and Cost of Incentive Programs to Reduce Staff Absenteeism in a Preschool

Most employers provide some number of paid sick leave days for their employees. If employees use their sick leave days by calling in sick on days they are feeling well, productivity (in terms of either goods or services) may be reduced. In this study, conducted at a preschool, productivity was defined as the number of children enrolled each month. In baseline, the 13 full-time employees were absent 4% of the time and 75 children were enrolled. The effectiveness and cost of two voluntary incentive programs designed to reduce employee absenteeism were examined for 4-½ years in a single case experimental design. The absenteeism of employees who volunteered to participate in the incentive program was .7% and overall absenteeism during the incentive programs was 2-½% while costs remained constant. Twenty-six percent more children were served. Employees preferred monetary to non-monetary incentives.