Average Absenteeism Rate per Employee as a % of Total Working days

Answer QuestionsCategory: HRAverage Absenteeism Rate per Employee as a % of Total Working days
Oana Boteanu Staff asked 2 years ago

This indicator is for measuring the average absenteeism rate per employee, as a % of the total working days. This KPI is used as an indicator of employee motivation because, in management terms, a high absence rate resembles a low motivated individual. Studies and reviews have shown that low motivated employees are more likely to call in sick or skip days of work, rather than highly motivated employees.

A company’s aim is to reduce this figure, for cost reasons and also for performance reasons. Low motivated employees with a high absence rate will affect the overall achievement of the organisation’s goals and their profitability in the market. Hence, the organisation will put in place strategies and practices to minimize this figure, generally lead by the HR Department.

Formula:

Total number of absent days per employee/ total number of working days x 100
Where Total number of absent days per employee is calculated as:
Total number of absent days / total number of employees

KPI Units: %

KPI Time Frame: update annually

Example:

Company A, of 400 employees, is measuring the absenteeism rate per employee over a year period:
Total number of absent days per employee:

Total number of absent days in the year: 1000
Total number of employees: 400
1000/400 = 2.5 absent days per employee

Total number of working days: 260 (in a year) per employee

Absenteeism Rate per Employee:
Total number of absent days per employee / total number of working days x 100
2.5 / 260 x 100 = 0.96 %,

Therefore, the absenteeism rate per employee is under 1 % (unlikely result in real life)
This will probably be a result of 200 or more employees with no absent days, and the rest of employees with a few absent days a year.


Software for your KPIs

bscdesigner-100x100 Manage your KPIs and visualize them on dashboards and strategy maps with professional cloud-based Balanced Scorecard software.

10-Step System to Find Tailor-Made Key Performance Indicators

kpi-system-240

Examples of KPIs

It is easier to get started with KPIs when you have some good examples to follow. Find here examples of KPIs for various domains.

Winning KPI Crash Course

premium-bsc-training Even the best KPIs won't change anything if they are not properly aligned with a business context, if a company's strategy is not well defined, if there is no clear understanding about what the company is measuring and way...

Check out a "crash-course" for the Balanced Scorecard and KPIs.

Find us on Google Plus