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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.


Absence Cost Calculator
         
    Number of employees:  
    Annual average salary:
$43,000
 
    Total payroll:
$43,000,000
 
         
    Absence costs    
 
Planned absence: short or moderate-duration absences, such as vacations and holidays, where the supervisor knows about, and has likely approved, the absence in advance
Planned absence costs:
$11,180,000
 
 
Incidental absence: absences of five work days or less, such as casual sick days, where the occurrence was not known and approved ahead of time by the employee’s supervisor
Incidental absence costs:
$2,494,000
 
 
Extended absence: absences lasting beyond one week, often unplanned, and generally due to a disability and/or qualifying as a leave under the U.S. Family and Medical Leave Act (FMLA) or a state equivalent
Extended absence costs:
$1,247,000
 
    Estimated annual costs of absence:
$14,921,000
 
         
    Estimated savings    
    If you reduced the cost of absence by:  %  
    Your estimated annual savings would be:
$596,840
 
         
Calculate Absence Cost
         
   

Annual salary: Bureau of Labor Statistics
Absence Costs source: Mercer, 2010

   

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.

 

The true cost of employee absence is staggering. Get more facts in this exclusive study >>


Click here to download The Total Financial Impact of Employee Absences report

Mercer Study:
"The Total Financial Impact of Employee Absences"

Get the facts Mercer uncovered in the exclusive study of nearly 300 organizations.


Click here to download The Total Financial Impact of Employee Absences report















*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.