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CAPITAL/HIDDEN LOSS

01 March 2025

One of the topics that has been frequently discussed in the business world recently is the "ghost employee" syndrome. These are employees who are physically present in the office but do not fulfill the requirements of the job or frequently take excuse leave, creating a significant loss of productivity for companies. According to experts, the root causes of this issue lie in unmet employee expectations, burnout syndrome, increasing stress, and decreasing company loyalty. Companies aware of the scale of the problem are trying to manage this risk through special practices aimed at increasing employee engagement.

What are Human Resources Departments doing?

Remote working has increased flexibility and improved work-life balance for many employees. However, this new arrangement has also brought chronic issues to the fore, such as being physically present at work but mentally disengaged. Although absenteeism is generally closely monitored by management, the real cost comes from employees who are present in the office but show low performance. According to the Global Corporate Challenge (GCC) report, while the global average absenteeism per employee is around four days a year, the period of mental disengagement can reach as high as 57.5 days. Various studies indicate that absenteeism creates an annual cost of between $2,500 and $3,500 per employee for a company. The annual cost of mental disengagement to the U.S. economy exceeds $150 billion. "Ghost employees can go unnoticed for a long time in organizational structures," experts say

. EXPECTATIONS NOT MET

According to management experts, there has been a significant increase in the number of ghost employees in recent years. The changing working conditions after the pandemic, economic uncertainties, and lack of motivation are among the main reasons for this rise. According to a Randstad report, 83% of employees demand flexible working hours, and 71% want the opportunity to work from any location. Failure to meet these expectations weakens employee engagement and increases absenteeism rates. Indeed's data shows that 67% of employees tend to skip work when they cannot cope with stress. Egon Zehnder Senior Partner Murat Yeşildere states that stress and anxiety negatively affect employees' mental health, leading to burnout, disengagement, and loss of motivation. Yeşildere also emphasizes that the dynamics changed by the pandemic play an important role in this process, adding, "Although the pandemic's impact has faded, employers' desire to return to a five-day, 9-to-6 work schedule is not fully met. Especially Gen Z is more demanding on this issue. When employee expectations are not met by employers, the rate of 'ghost employees' and absenteeism increases."

THE COST IS HIGHThe increasing number of ghost employees is also raising the cost for companies. Loss of productivity, work disruptions, and lack of quality not only create a financial burden but also negatively affect the motivation of other employees. Jilda Bal, Founder of Gilda & Partners Consulting, emphasizes that the cost of ghost employees is not limited to their salaries and benefits. She summarizes the multidimensional impact as follows: "Low productivity and inefficiency of employees negatively affect the total output of companies. For example, a lack of motivation and failure to fulfill duties by one employee can increase the workload of other team members and lead to their loss of motivation as well. The annual cost of absenteeism reaches serious figures for both companies and economies. Besides financial losses, the emotional costs should also not be overlooked."

NURSEL ÖLMEZ ATEŞ BORUSAN HOLDING GROUP PRESIDENT OF HUMAN, COMMUNICATION, AND SUSTAINABILITY

Throughout 2024, the average absenteeism (unpaid) period of Borusan employees was 3 days. Considering today's world with illnesses, losses, and official tasks, we believe this is a very reasonable duration. When we look at the global average, although it varies depending on the sector, country, and employee position, many studies and surveys show that annual absenteeism rates generally range between 2% and 4%. This means an average of 5 to 10 days of absenteeism per year. At Borusan, we are well below this rate.

"WE OFFER DEVELOPMENT OPPORTUNITIES"

" We believe that many of the practices we have implemented have contributed to the low absenteeism rates. With our strong employer brand, we position Borusan as an employer offering a happy, meaningful, and unique employee experience. We continuously offer learning and development opportunities to our employees. We especially prepare training and development programs aimed at identifying and developing the new competencies that will be needed in the future business world. We focus on cultivating motivated and engaged employees. We regularly gather feedback through employee engagement surveys and determine necessary actions with the active participation of all our colleagues and implement them together.

The negative atmosphere created by Human Resources in the workplace weakens team spirit and lowers the overall level of satisfaction in the workplace. In the long run, it may become increasingly difficult for companies to intervene in this situation. To combat this, companies may need to reconsider their employee engagement and talent management strategies.

WHAT'S THE SOLUTION?

So how are companies managing the ghost employee issue? What is the level of awareness on this matter? In Mey Diageo, the average excuse leave rate, including both blue-collar and white-collar employees, was 1% in 2024. Mey Diageo HR Director Ülfet Baykent Uysal states that company policies are entirely based on a people-centered culture and employee trust, saying: "We position this topic under four main pillars to support the well-being of our employees and their loved ones: social, physical, mental, and financial well-being. Under the motto 'The New Form of Well-Being,' we conduct comprehensive well-being programs based on employee feedback." Doğuş Çay HR Director Yunus Durmuş states that they follow a weekly tracking system to reduce, even eliminate, absenteeism and adds: "We apply a premium system called attendance bonus to all our production employees. This prevents disruption of customer orders and absenteeism problems." Doğanlar Furniture Group CEO Mustafa Karamemiş says they aim to reduce absenteeism rates by using new technologies and taking employee feedback into account and adds: "By focusing on factors such as employee satisfaction, occupational health and safety, and career development, we have significantly reduced the annual absenteeism period per employee. As a result, we have increased both our employees' and our company's productivity."

At Doğan Trend, the absenteeism rate per employee was 2.89 days in 2023. Doğan Trend Human Resources President Esra Tosun states that they conduct data-driven analyses to reduce absenteeism and strengthen employee engagement. She explains that they monitor employees' working locations and moods through daily automatic surveys and provide one-on-one support to employees who report feeling unwell. Based on this data, they take actions to support health.

PANDEMIC EFFECT AND FLEXIBLE APPROACH

Contrary to what is seen in CIPD (The Chartered Institute of Personnel and Development) reports, there has been no significant change in our employees' absenteeism rates. The average number of days off (with medical report) for Philip Morris Turkey employees before the pandemic has remained at similar levels in 2023 and 2024. However, we have observed that our employees are more aware and sensitive about their own and environmental health. I believe the real issue in many workplaces is not absenteeism but rather employees being physically present without fully participating in their work. As the People and Culture department, our goal is to create a culture where our employees can be fully present both physically and mentally at the workplace. During the pandemic, we implemented the Smart Work model, which distinguishes us globally and from many companies in Turkey. With this model, employees in positions deemed suitable for remote work are expected to work in the office only when required by their tasks or when it serves a purpose, rather than following a fixed calendar. Otherwise, these employees are free to work from anywhere within Turkey.

Coca-Cola HBC Human and Culture Director Ebru Özgen states that hybrid working has changed manager-employee relationships and routines. She notes that this has created cultural and relational differences within the company. She mentions that today, employees work even while on vacation or manage their private lives during work hours, and adds: "After the pandemic, the integration of employees' private and professional lives has strengthened. Productivity is no longer measured by the hour. If companies have created a strong cultural and leadership model that trusts its employees, gives them space, and aligns them with a common purpose, they won’t have to deal with concepts like ghost employees."

"THE WORKPLACE IS NOT JUST A WORKSPACE"

The number of companies trying to reduce inefficiency and absenteeism through innovative practices is also increasing. DHL Express Turkey is one of these companies. The company's HR Director Müge Arslan says that innovative practices not only strengthen employee engagement but also significantly reduce absenteeism rates throughout the year. Arslan notes: "Our success is based on our company culture and the opportunities we offer to meet the needs of our colleagues. Our employees view the workplace not only as a place to work but also as a space where they can rest, socialize, and support their personal health." According to Arslan, the hybrid working model they made permanent after the pandemic for suitable positions also contributes significantly to achieving a work-life balance.

Sportive HR Director Ayşegül Atabay notes that sales-target-focused teams risk falling short of targets and losing bonuses in cases of absenteeism, so they expect employees to manage their own responsibilities. She mentions that they adopt a business- and results-oriented management approach at the headquarters, and adds: "We expect our managers to effectively manage their teams. Although working from home is not defined on a contractual basis, it is shaped by the manager's initiative and the functions of the department. For example, while the finance team works at the office, the e-commerce team has a more flexible working model."

PSYCHOLOGICAL SUPPORT

At Man Turkey, the annual absenteeism per employee was 2.3 days as of 2024. Man Turkey HR Director Mustafa İskifoğlu says that they conduct awareness-raising activities and periodic check-ups with physiotherapists and psychologists to reduce absenteeism. He emphasizes that the main goal is not just to reduce absenteeism but to raise employee awareness and contribute to public health. İskifoğlu also mentions that the hybrid working model is an important tool for employee engagement, noting that nearly 50% of their R&D team works from home and has access to long-term remote working opportunities.

Artsana Turkey operates with a model of three days in the office and two days working from home per week. Artsana General Manager Saruhan Ekinci states that this method is highly productive, and they see no need to change it, so they do not use a special system to track absenteeism.

YKK HR Manager İlay Karataş states that absenteeism directly affects the production flow in the manufacturing sector. She explains that they are working on implementing an attendance incentive bonus system in 2025 to reduce the absenteeism rate, which was 11.5% in 2024. She adds: "We support employee health with ergonomic workstations, health check-ups, and occupational safety training. We offer flexible working models."