The Impact of Absenteeism on Job Performance: Evidence from Pakistani Insurance Companies

Abstract

In a competitive environment, employee absenteeism has a great impact on the job performance of the employees. The absence of the employee does not only affect the job performance of the employee in general but also affects the whole department and organization. So, the phenomenon of employee absenteeism of employees is considered a critical area for management concerns and research because an organization can save a huge amount of money by identifying the drivers of absenteeism and by taking necessary and corrective actions against it. The purpose of this study was to examine the relationship between depression, emotional exhaustion, work centrality & work locus of control, and job performance. This study is conducted on insurance companies only due to a limited period. The adopted research design is a case study as the gathered data is only from one organization. Approximately total population of insurance companies is approximately 460, and the sample size is 210 respondents as per Krejice Morgan's table. A convenient sampling technique is used because of the availability of the respondents for this research. The research technique used in this study is multiple correlation and multiple regression, and the software used for data analysis is SPSS version 20. An instrument is adopted that includes close-ended questions, which is further based on a five-point Likert scale. Results showed that depression, work locus of control, and emotional exhaustion influence job performance, whereas there is no relationship seen between work centrality and job performance. Moreover, implications, limitations, and future recommendations are also discussed in the research paper.