Absenteeism Rate

Category: HR KPIs.

We all get sick or have emergencies at some point. Sometimes, we are simply unable to get to work – and this has nothing to do with your vacation days, authorized leaves, or statutory holidays. No, this has to do with you picking up your phone in the morning, and telling them that you can’t come to work for whatever reason.

However, as a company owner with multiple employees, the absenteeism rate is not something that should be taken lightly. A high absenteeism rate can lead to productivity loss and budget issues – which is why you may want to keep an eye on your Absenteeism ratecompany and its absenteeism rate.

Calculating the Absenteeism Rate

It is fairly easy to calculate the absenteeism rate of a company if you know where to look. First, you will need to find the number of work days that have been lost due to absenteeism. After that, you will have to divide that number by the number of work days available in an organization – and you will find your absenteeism rate.

As a result, the formula should look something like this:

Absenteeism Rate
Number of Workdays Due to AbsenceNumber of Available Workdays in an Organization

If the absenteeism rate is particularly high, then you might want to find out if the cause is company-wide or if it’s related to a particular department. In this case, you may want to start implementing certain corrective measures – which will ensure that absenteeism won’t cause permanent damage to your company.

How to Reduce Absenteeism Rate

Absenteeism is counter-productive for every business and can cost every organization very much – which is why, as a company owner, you may want to take action. Here are a few steps that could allow you to reach your goal.

  • Find the Source of the Problem: Is the absenteeism caused by something physical – such as the danger of the work environment – or is it a psychological one? You need to find the source of the problem so that you can find methods of countering it.
  • Communicate Efficiently: It may sound like a clique, but one of the best ways of reducing the absenteeism rate is to communicate with your employees. If they feel like their needs are listened to, then they will be less likely to skip work. You also need to create an environment where your employees are not afraid to speak freely – therefore allowing you to pinpoint the problem.
  • Implement Good HR Practices and Policies: If your organization works with effective HR practices and policies, then they will be more likely to perform better and stay productive. Make sure that your policies can protect them from situations such as harassment or conflict – to avoid any situations that might cause them to skip work.
  • Take the Personality into Account: Everyone has a certain set of skills, knowledge, and abilities that they have been training on – and their “personality” is one of these attributes. To ensure absenteeism won’t be a problem, you need to create an environment where people won’t be prone to burnouts, stress, and other similar issues.

Absenteeism is not good for any business – so if you see that the absenteeism rate is fairly high, then you might want to implement the steps above.

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