How to Calculate Absenteeism Rate
Understanding your organization's absenteeism rate is critical for maintaining productivity, managing costs, and ensuring employee well-being. This metric represents the percentage of time that employees were scheduled to work but were absent.
The Absenteeism Rate Formula
The standard formula used by HR professionals to calculate the absenteeism rate percentage is:
To use this formula effectively, you need to determine two main components:
- Total Scheduled Hours: This is calculated by multiplying the number of employees by the number of workdays in the period and the standard hours per workday.
- Total Hours Lost: The sum of all hours missed by employees due to sickness, unauthorized leave, or other unplanned absences during that period.
Example Calculation
Let's say you run a company with 50 employees. You want to calculate the absenteeism rate for the month of November, which has 22 workdays. The standard shift is 8 hours.
First, calculate total scheduled hours:
50 employees × 22 days × 8 hours = 8,800 scheduled hours.
During this month, your records show a total of 150 hours were lost due to employees calling in sick or missing work.
Now, apply the formula:
(150 / 8,800) × 100 = 1.7%
What is a "Good" Absenteeism Rate?
While benchmarks vary by industry, generally:
- 1.5% or lower: Excellent. Your workforce is highly engaged and healthy.
- 1.5% – 3.0%: Average. This is typical for most industries.
- Above 3.0%: High. This may indicate issues with workplace culture, burnout, or illness that need to be addressed.
Why Track Absenteeism?
High absenteeism isn't just an HR statistic; it has real financial implications. When employees are missing, projects get delayed, temporary staff costs rise, and morale can suffer among those who have to pick up the slack. By using the calculator above, you can not only determine the rate but also estimate the direct salary costs lost to absence.