Definition – What is the meaning of “Absence Rate”?
Employee Absence Rate is the rate of worker absences to total full-time employment.
A high absence rate means that employees are frequently missing work. A low absence rate means that employees are often at work.
Formula – How to calculate Employee Absence Rate
Employee Absence Rate = (Number of Absence Days ÷ (Total Employees x Work Days)) x 100%
- “Number of Absence Days” is the number of days any employee is absent from the business for any reason.
- “Total Employees” is the total number of employees in the business.
- “Work Days” is the number of days to measure the absence rate (some people prefer to measure absence rate over years, others prefer to target a specific month or week).
A company has a total of 150 absence days among 300 employees over 22 work days.
Employee Absence Rate = (150 ÷ (300 x 22)) x 100% = (150 ÷ 6600) x 100% = 0.02272 x 100% = 2.27%
Therefore, this company has an EAR of 2.27%.
Sources and more resources
- Houston Chronicle Small Business – How to calculate employee absenteeism rate quarterly – An overview of the formula used to calculate absenteeism rate.
- Monster HR Blog – How can I measure Employee Absenteeism? – Some different methods of measuring employee absenteeism.
- Bizfluent – How to calculate absenteeism – An explanation of the employee absenteeism formula.