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All Journal Riset Akuntansi dan Bisnis Indonesia
Manahan Siallagan
Institut Teknologi Bandung, Indonesia
Economics, Econometrics & Finance

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Strategic decision analysis to enhance labor productivity affected by sick leave absenteeism in the manufacturing industry Riska Bagus Setyawan; Manahan Siallagan
Riset Akuntansi dan Bisnis Indonesia Vol 1 No 2 (2025): May
Publisher : LPPM STIE Krakatau

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Abstract

Purpose: To analyze the effect of sick leave absenteeism on labor productivity in a manufacturing factory and recommend strategies to meet the 2% absenteeism target. Methodology/approach: Mixed qualitative–quantitative method using Kepner-Tregoe analysis, fishbone diagram, and prioritization matrix. Data came from attendance records, medical reports, interviews, FGDs, and secondary sources. Results/findings: Sick leave contributed 3.06% to a total absenteeism rate of 3.36% in 2022, exceeding the target. Key causes were lifestyle issues, unsafe work areas, financial motives, ergonomics, chemical exposure, and weather. Six priority solutions were set: validate sick notes, healthy condition competitions, strengthen safety culture, Kaizen for work improvements, provide PPE, and healthy lifestyle education. Conclusions: With a US$9,050 budget, the six strategies can reduce absenteeism and improve productivity if monitored over six months. Limitations: Focused on one factory with ~550 employees, limiting generalization. Contribution: Presents an integrated decision-making model for reducing absenteeism and boosting manufacturing productivity.
Co-Authors Riska Bagus Setyawan