Impact of Employee Absenteeism on Organizational Profit: A Quantitative Study

Author(s)	Dr. G RAJENDRA PRASAD, Dr. AMMI REDDY MALLIDI
Country	India
Abstract	Employee absenteeism has emerged as a critical challenge in organizational productivity and financial performance. This study investigates the impact of employee absenteeism on organizational profit by analyzing primary data collected from 120 employees across manufacturing firms in Andhra Pradesh, India. The results reveal a significant negative relationship between absenteeism rates and organizational profit. Regression analysis shows that absenteeism accounts for 38.4% of the variance in profit reduction (R² = .384, p < 0.001). The findings indicate that high absenteeism leads to increased overtime costs, production delays, reduced service quality, and lower overall profitability. The study provides practical managerial strategies to reduce absenteeism and enhance financial performance.
Keywords	Absenteeism, Organizational Profit, Productivity, Financial Performance, Human Resource Management
Field	Business Administration
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-05
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.62552

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