Measuring absenteeism: what absenteeism costs you

Absenteeism has a cost, that’s a fact: it causes financial losses, but also human and material losses. In France, absenteeism costs a company around €3,500 a year per employee, or €25 billion, a sobering figure when you consider that absenteeism has been on the rise since 2017. In this article, Moovency’s health prevention experts help you understand the direct and indirect costs of absenteeism in your company. Learn how to measure your absenteeism rate and follow the right indicators.

Absenteeism figures 

[For a definition of absenteeism and the causes of absenteeism, read our previous article :  Absenteeism at work: why are so many employees absent?] 

 

  • On average, employees in France are absent for 14 days a year ; 
  • From 2017 to 2021, absenteeism rose by 4% in France ; 
  • All age groups and job types are concerned. The greatest increase in absenteeism is among young people under 35. It reached +54% over the period ; 
  • In France, absenteeism costs companies around €3,500 per employee per year, or €25 billion. If we take hidden costs into account, the total comes to 4,059 euros per employee. That’s 4.7% of France’s GDP (Gross Domestic Product) ; 
  • 50% of employees suffering from chronic low-back pain will not return to work after a break of more than 6 months. 
1
days absence per year
1
suffering from chronic low-back pain will not return to work

Calculating absenteeism, the direct and indirect costs of absenteeism


The direct costs of absenteeism

The direct costs of absenteeism are the easiest to understand. They are linked to the costs incurred by absences, in particular : 

 

  • Maintaining the absent employee’s salary, part of which is paid by the employer. The employer pays the difference between the daily allowance (IJ) paid by the insurance company and the salary of the terminated employee ; 
  • The amount of the AT/MP contribution (Urssaf – These are contributions made by companies for work-related accidents), proportional to the number of accidents at work and occupational illnesses declared by the company during the year ;  
  • The cost of waiting days paid by the employer; 
  • Possibly medical or hospital expenses. 

The indirect costs of absenteeism 

Indirect costs, often less easy to estimate, weigh heavily on a company’s balance sheet. They cost between 3 and 5 times the value of direct costs. They include :  

 

  • Time lost due to accidents or production stoppages ;  
  • Replacement of equipment, which may be damaged during the accident;  
  • Personnel management and replacement costs: additional workload for human resources, recruitment, training and integration of new employees ;  
  • Loss of productivity in departments faced with prolonged absences ; 
  • Loss of know-how due to the departure of a skilled employee. These long-acquired skills and know-how are sometimes very difficult to replace in certain sectors or geographical areas where the labor market is under pressure ; 
  • Additional absences caused by deteriorating working conditions: not enough FTEs to function, demotivation of the rest of the team, stress and psycho-social risks that accumulate for employees ; 
  • Time spent with external services (CARSAT – French institute protecting the health and safety of employees in the workplace -,  labor inspectorate, etc.); 
  • Possible legal proceedings (lawyers’ fees). 

 

For companies, a soaring absenteeism rate means a vicious circle of financial costs. If we look at absenteeism from the employee’s point of view, a long-term absence is not insignificant. It leads to a loss of income and a deterioration in health, both vectors of stress. When health problems lead to incapacity or disability, the whole company, from the employee to the state, is affected. 

How to measure absenteeism in your company: indicators to track 

By choosing the right HR indicators to track in your dashboard, your company will be able to monitor absenteeism, assess its causes and then take appropriate action. This is the first step towards an action plan. 

The absenteeism rate, the key indicator for measuring absenteeism in the workplace 

The absenteeism rate is the main indicator for measuring absenteeism in the workplace. To calculate the absenteeism rate, use this formula : 

Each measurement must be taken over the same period. Absenteeism rates are generally calculated on a monthly or annual basis. 

Other indicators for evaluation 

In addition to the absenteeism rate, it may be useful to monitor other indicators to gain a better understanding of the extent of the phenomenon internally. Trends in the number of absences, their average duration and their distribution within the company (by department, age or profession) can provide strategic information. 

Other HR and health prevention indicators are relevant depending on the situation: number of prevention actions planned, ROI of prevention actions, employee satisfaction questionnaires on working conditions, teleworking days taken, etc. 

Measure absenteeism to initiate a prevention plan 

By tracking the right indicators, you’ll know whether your company is experiencing absenteeism. Awareness, backed up by figures from the field, is the first necessary step in launching an effective prevention plan. Ultimately, this will help reduce absenteeism in your company and the associated costs. 

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