Absence Management: A Practical Guide for Small Business Owners

This article is written by Rona Loweth, HR Services Manager at McKinney HR.

Small teams often work in a very informal way. But as your business grows, there comes a point where formalising certain ways of working becomes essential. These are your HR processes, and absence management is one of the most important to get right early – for employee wellbeing, managing workload and keeping the business running.

Each absence situation can be so different, but having a clear written process removes uncertainty and helps you respond consistently and empathetically. At the end of the day, you want to ensure your employee gets the help they need to recover or resolve personal circumstances and return to work as soon as they can. As an employer, there’s a lot you can do to keep things on track — whether the absence is due to sickness, caring responsibilities, or an unexpected emergency.

Respond empathetically to unplanned absences

When someone calls in sick or faces an emergency at home, give them space to focus on the immediate issue. Reassure them that their wellbeing is the priority, which helps reduce stress or guilt about not being at work. But, don’t leave things open-ended – agree on a time to check in. This keeps them connected, you know what’s happening, so you can plan resources and cover work.

Be clear about how the time off will be classed and paid

Consistency is key. It helps people feel valued and reduces legal risk if the situation becomes more complex. Decide – and ideally document – how you’ll classify different types of absence (e.g. paid sickness, carers’ leave, domestic emergencies). Small businesses often choose to enhance some types of leave even where legal entitlements are low, but this should be clearly outlined in a policy.

It’s really important that your employee knows from the start how their pay will be affected. Surprises on a payslip create additional stress, which you want to avoid, particularly when someone is already dealing with a difficult situation.

Balance empathy and formality in your communication

Start with a conversation – it’s warmer and easier for the employee – then follow up with an email to confirm what was agreed. This ensures everyone knows what is happening and sets helpful boundaries. You can use a simple phrase such as:

“I thought it would be useful to confirm what we discussed, as I appreciate you’ve got a lot going on just now.”

Keep in regular contact

Once you’ve been clear about the process, pay and initial expectations, ongoing contact is important for both wellbeing and planning. How often you are in contact will depend on the situation. For example:

  • It might feel appropriate for someone undergoing long-term treatment to just have weekly emails and fortnightly check-ins.
  • For a short-term but changing situation, communication every 2–3 days will be needed.

The aim is empathetic and clearly set out contact requests, rather than pressure.

Know when (and how) to discuss a return to work

This can feel awkward, especially in small teams with an informal culture – but avoiding the topic can complicate or prolong a situation. Your policy should outline when an absence becomes long-term and when a more formal review is needed. Regular contact makes these conversations easier, but if someone seems reluctant or lacking confidence to return, you can approach it gently:

  • Ask what they feel would help them return.
  • Explore adjustments such as phased duties or a gradual increase of hours.
  • Have these conversations verbally initially, not via text or email.

Support the employee during their first days back

A thoughtful return sets the tone for a positive return. Once the employee is back, hold a simple return-to-work meeting – this doesn’t need to be formal. It can be a short, friendly check-in on their first day or within the first couple of days. The point is to:

  • Welcome them back and show you’re pleased they’ve returned
  • Check how their first day has gone
  • Understand whether they need any adjustments or temporary support
  • Update them on any changes they have missed
  • Reconfirm expectations (tasks, output) in a positive, constructive way

This meeting is about ensuring the employee feels supported, not scrutinised. Done well, it increases confidence, raises any early issues, and reduces the risk of recurring absence.

Document all communication

Even if your style is informal, make sure you keep a record of conversations, updates and agreed actions. This protects both you and the employee if the situation becomes more complex later or requires formal steps.

Absence management is something we deal with every day. If you’d like support reviewing your procedure, drafting a policy, or managing a specific case, we’re here to help.