One of the chief advantages of objective measurement and analysis of absence is the correction or confirmation of subjective views. It may be that a few employees have unacceptable absence levels, or perhaps one or two longer-term cases of sickness are suggesting a major overall problem when in fact only a limited one exists. On the other hand, there may be a widespread problem in need of extensive remedial action.

The first step in controlling absences is to measure the extent of the problem and to publicize the results in some form of weekly/monthly report showing all absences for the period plus the defaulters. A copy of this can be provided to managers in order to keep an eye on problem areas or employees.

Most personnel management systems include some degree of absenteeism reporting which allow you to analyze and identify problem areas. Other systems such as time & attendance, which automate the clocking-in procedure for you, certainly help minimize any abuse of the system and can result in immediate reductions in absenteeism.

Recent figures from the Institute of Personnel & Development and the Confederation of British Industry suggest that the average level of sickness absence in the UK costs employers around 465 GBP per employee per year. This figure only reflects the direct costs of absence i.e. sick pay, overtime payments and replacement staff. So, by this measure, for 100 staff the cost of absence is 46,500 GBP.

The full cost of absenteeism to your company includes basic cost above plus lost productivity, administration time, employer's liability settlements etc. This is suggested to be more like 1,860 GBP per employee. So by this calculation the cost of absence for 100 staff is 186,000 GBP!

Two useful methods of quantifying absence measurements are as follows:

Lost Time Rate

• The most common measure of absence shows the percentage of total time available which as been lost because of absence from all causes in a given period.
• The lost time rate can be calculated for hours or days and can be regarded as an overall measure of the severity of the problem. If calculated separately by department or group of workers, it can show up particular problem areas.
• To calculate lost time rate just divide the total number of man days/hours lost in a time period by the total number of man days/hours available in that period and multiply by 100. For example:
• Absence days: for 100 employees x 1 day each = 100
• Available days: for 100 employees x 20 days = 2000
• Lost time rate = 5%

Frequency Rate

• Total time lost may consist of a small number of people who are absent for long periods, or a large number absent for short spells. A measure of frequency is therefore needed to show how widespread the problem is, so that companies can formulate appropriate plans to reduce it.


• The frequency rate shows the average number of spells of absence per employee (expressed as a percentage) irrespective of the length of each spell of absence.
• Example: If over a period you have 200 spells of absence, and 100 employees, then your frequency rate = 200%.