On average, employee absence accounts for the equivalent of 35% of base payroll.*
Employee absence can take many forms: vacation; sick time; and government-regulated leave, like FMLA. Each of these absence types — whether planned, incidental, or extended — carries with it its own costs, management headaches, risks, and productivity hits.
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Number of employees: |
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Annual average salary: |
$43,000 |
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Total payroll: |
$43,000,000 |
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Absence costs |
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Planned absence costs: |
$11,180,000 |
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Incidental absence costs: |
$2,494,000 |
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Extended absence costs: |
$1,247,000 |
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Estimated annual costs of absence: |
$14,921,000 |
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Estimated savings |
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If you reduced the cost of absence by: |
% |
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Your estimated annual savings would be: |
$596,840 |
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Annual salary: Bureau of Labor Statistics Absence Costs source: Mercer, 2010
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Being average isn’t always such a good thing.
Download the new Mercer research on employee absence to gain a greater understanding of the scope and impact of absenteeism. Or give us a call at (800) 225-1561 and we’ll help you assess the true cost of employee absence to your organization. And at the same time, we’ll reveal to you the secrets of developing a “below average” absenteeism record.
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The true cost of employee absence is staggering. Get more facts in this exclusive study >>
Mercer Study: "The Total Financial Impact of Employee Absences"
Get the facts Mercer uncovered in the exclusive study of nearly 300 organizations.
*Source: "Survey on the Total Financial Impact of Employee Absences," Mercer (2010). The total costs of all major absence categories, including direct and indirect costs, average an equivalent of 35% of base payroll.
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