Absenteeism is a serious workplace problem and an expensive occurrence for both employers and employees seemingly unpredictable in nature. The term absenteeism refers to the failure to attend to work. It is one of the major problems faced by companies across the globe today. Unscheduled absenteeism badly hurts the progress of an organization resulting in loss of productivity, increased costs in hiring additional staff and low morale among the workers. Absenteeism affects the efficiency, productivity and discipline of an organization. It not only shows the irresponsibility of the employee but also their disloyalty towards the organization. Absenteeism reduces the satisfaction level of the employee and makes him unsecured about his job in the organization. This paper focus on absenteeism as a threat to the organization as it reduces the employee satisfaction and the ways to manage absenteeism in the Spinning Mill industry in order to improve the productivity of the organization. A productivity gainsharing incentive scheme is proposed to the industry to improve satisfaction level of employees and reduce absenteeism.

Keywords: absenteeism, job satisfaction, productivity, incentives, gainsharing