Employee absence costs the UK over £14 billion each year. That’s £554 per employee!*
Rates of employee absence or staff absenteeism, turnover and retention are great indications of the workplace environment and satisfaction levels of staff and employees. By calculating these different rates, you can determine how well your workplace has adapted to the current realities of the workforce as well as your level of readiness and preparation to address both future human resource and employee engagement needs. *Source CIPD, 2015 Absence Management survey.
To ensure information is clear and consistent, it is helpful to have working definitions about employee absence:
- Employee Absenteeism: Meaning that employees are missing part or whole days of work due to personal illness, personal business, or other reasons (excluding paid holiday leave). These absences may be avoidable or unavoidable, paid or unpaid. It is the total rate or percentage of employee absence regardless of the reasons. Unpaid employee absence still has a cost impact on the organisation through lost productivity and replacement labour costs.
- Employee Attrition: Employee attrition refers to the loss of employees through a number of circumstances, such as resignation and retirement. The cause of attrition may be either voluntary or involuntary, though employer-initiated events such as redundancies are not typically included in the definition.
- Employee Retention: Employer’s capacity to keep employees. Retention can include desirable retention and undesirable retention.
- Employee Turnover: Replacement of employees who have left the workplace due to either voluntary or involuntary reasons. This is not employee absence. To calculate the cost of employee turnover for your organisation use our helpful Cost of Attrition / Turnover Calculator and Potential Savings Table.
To calculate your own organisation’s cost of absence and potential savings, use our free cost of absence calculator and potential savings table below.
You will need to know your employee absence rate expressed as a percentage. If you need to calculate the staff absence rate, (the overall days/hours that were lost as a result of absence that could have been worked), use the method below and convert it to a percentage;
Total of workdays lost due to absence
(Average employee population x Number of work days available per employee) x 100 =
Equals your absence rate %