Formula
Absenteeism rate = hours lost ÷ (employees × hours per day × working days) × 100
Example
50 employees working 8 hours a day for 22 days have 8,800 planned hours. With 352 hours lost, the absenteeism rate is 4%: 44 full days, or 0.88 days per employee. At $30 an hour, the lost hours cost $10,560.
What to count
- Unplanned absences: sick days, lateness, unexcused absences.
- Usually not counted: vacation, public holidays and planned leave.
Frequently asked questions
What is a normal rate?
Many companies aim for 3% or less, but it varies by industry and country.
Should I count sick days with a doctor’s note?
For the rate, yes: they are hours the team did not have. Analyze the causes separately.
How do I reduce absenteeism?
Look at the causes: health and safety, workload, commuting, leadership. Flexible hours and support programs often help.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.