The Cost of Employee Absence Calculator will help you estimate the economic cost of absenteeism in the company. Find this out with our simple formula.
Workplace absenteeism entails an absence from the place for work for no valid reason, and any such related absence. Knowing how to manage absenteeism at the workplace requires solid management of scheduling and face-to-face contact. With one of our many online calculators you can now calculate the cost of this absence.
How to calculate the cost of employee absenteeism
To come to terms with absenteeism it is vital to understand if these types of costs are going to lead to losses at the firm. With the aim of avoiding this problem, it is useful to collect the relevant information and calculate and analyze the cost of employee absence.
When an employee finds themselves unable to work temporarily due to a work related or non-work related accident they usually receive a compensation fee for temporary inability to work, which incurs costs on the firm. This type of sick leave is often managed using an Excel employee absence tracker spreadsheet. It is a useful tool to monitor the phenomenon and have all the information in one document.
The cost of employee absence directly affects the productivity and cost effectiveness of the company. This business calculator will offer you information about the employee absence rate and will help you make decisions about the human capital in the company.
If you follow each of the steps to calculate the cost of employee absence you will obtain important information about your company :
- Add the type of absence be it work or non-work related.
- Select the start date of the absence and the end date.
- Choose the currency
- Insert the gross annual salary of the employee
- Write the percentage of sick leave pay afforded and if applicable the replacement costs
- Indicate other costs relating to the employee absence
- Finally, click the “Calculate” button and you will obtain your result.
How does employee absence affect a business?
Excessive employee absenteeism can provoke a sense of discomfort in the workplace, a lowering of productivity, incur additional costs due to hiring more personnel and the company’s long and short term objectives are seldom fulfilled due to slow delivery times.
What types of employee absenteeism exist?
Generally there are three types of employee absence :
- Justified absence : in these cases the employees have a compelling reason that justifies their absence during a concrete period of time.
- Unjustified absence : the employee does not have any compelling reason to not go to work.
- Procrastination at the workplace : the employee is present but not fulfilling the tasks demanded of them.
How to control employee absence rate?
To reduce the percentage of employee absence rate it is important to examine the true causes and try to address these, facilitating the work-life balance or one of the more reliable solutions is the utilization of a timetable software that has the function of being able to manage absences or holidays. You may want to use a new schedule planner to address this.