Formula
Absenteeism Rate = (Total Days Absent ÷ Total Workdays) × 100
Calculation Example
If a company has 1,000 workdays and 50 are missed, Absenteeism Rate = (50 ÷ 1,000) × 100 = 5%
Data Source
HR records, payroll systems
Tracking Frequency
Monthly, Quarterly
Optimal Value
A lower rate is better; under 3% is ideal.
Minimum Acceptable Value
A high rate suggests workforce disengagement or workplace issues.
Benchmark
Industry benchmarks: Healthcare ~3-6%, Retail ~4-8%, Manufacturing ~2-5%
Recommended Chart Type
Bar chart (to compare departments), Line chart (to track trends)
How It Appears in Reports
Displayed in HR reports to monitor workforce attendance.
Why Is This KPI Important?
Indicates employee well-being and workforce engagement.
Typical Problems and Limitations
May not account for justified absences like medical leave.
Actions for Poor Results
Improve workplace culture, offer flexible work options, enhance health benefits.
Related KPIs
Employee Engagement Score, Employee Retention Rate, Productivity per Employee
Real-Life Examples
A company reduced absenteeism from 7% to 3% by introducing wellness programs.
Most Common Mistakes
Focusing only on reducing absences without addressing root causes.
