Depending on where you do business, the law may or may not require employee leave. Vacation time and sick leave are usually what is referred to by “employee leave”. It’s not uncommon for employers to lump vacation time and sick leave into the number of absences allowed by company rules. However, the companies that create an effective sick day management policy reap major rewards.

Here’s why leave management means a healthy company:

1. Supercharge employee productivity

When a person is sick, they’re clearly not on top of their game to make optimal decisions. A study conducted by the Journal of Occupational and Environmental Medicine found that when employees went to work sick, they were significantly less productive. This phenomenon is often called “presenteeism”—and it’s costing companies. The American Productivity Audit found that health-related issues cost companies $160 billion per year; when employees were on the clock and sick, companies lost money. A clear sick leave plan allows employees to bounce back with full focus.

One immense side effect of instating a sick leave policy: decrease in presenteeism.

2. Recruit and retain top talent

Possessing a sound sick leave program for employees is one of the most understated tools in a company’s arsenal. “Happiness” may sound like a fuzzy goal word when it comes to employee retention. However it is the key in recruiting and retaining top talent. Potential hires and employees highly value and defer to the employers that possess stream-lined leave policy. In short, people talk. When they do, it’s wise to have good news to spread. Companies that do have paid leave programs enjoy lower employee turnover rates—more exceptional news to share!

3. Optimize work flow

Taking a page from Maslow’s Hierarchy of Needs, when employees have their basic needs met, they feel secure and supported. Research reveals giving workers autonomy is the biggest driver in increasing employee satisfaction. According to a Gallup poll, only 30 percent of American works feel actively engaged in work. Disengaged employees are more likely to leave prematurely, take more sick days, and not invest productive hours to the job. Autonomy is bolstered by feeling secure in a position, i.e. workers don’t worry what happens if they become ill. They are able to self-actualize in their roles. This gives them the confidence in contributing ideas and increasing work productivity. Having a sick day management program in place sets the stage for happier (and healthier) employees to deliver.

Setting up a program can become quickly complicated, especially when working with static time sheets. That’s why we built absence.io. With us, facilitating employee sick leave is easy. Managers and employees possess their own tailored leave settings, allowing requests and leave plans to be made, easily tracked, and documented.

Prepare a sick day policy and keep your company in top form.