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‹ HR Glossary

Absenteeism

HR metrics
What is absenteeism?

Absenteeism is the pattern of unplanned absence from work, beyond approved leave taken as intended. It is usually measured as unplanned absence days per employee per year, or as lost time against total scheduled hours.

How is absenteeism measured?

Two standard forms: unplanned absence days per employee per year (a common Australian planning figure is around nine), and the lost time rate, absence days as a percentage of scheduled working days, using 261 working days as the annual base. Measure unplanned absence separately from planned leave; annual leave taken as intended is a feature, not a cost.

What does absenteeism actually cost?

Direct cost first: a day's absence costs roughly the daily salary in lost output, before cover and overtime are added. At 100 employees averaging nine unplanned days, that is 900 lost days a year, several full-time equivalents of capacity. The indirect costs (disrupted teams, missed deadlines, supervisor time spent re-rostering) usually exceed the direct ones but never appear on a report.

Reading absence as a signal

Absence is behaviour, and behaviour has causes. Clusters under one manager, spikes after restructures and Monday/Friday patterns are not random; they are engagement, workload and psychosocial-hazard information arriving through the payroll system. Treat rising absence as a symptom to investigate, not a discipline problem to suppress, because suppressing it usually converts absence into presenteeism, which costs more.

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Where Compono fits

Absence data is one of the earliest honest signals a workforce gives you.

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Common questions

What is an acceptable absence rate?

Around a 3-4% lost time rate is a common working range, but industry, workforce age and the nature of the work move it. Trend and clustering are more informative than the absolute level.

Is all absence a problem?

No. People get sick, and personal/carer's leave exists to be used. The signal is in unplanned patterns and change over time, not in individual legitimate absences.

Definitions reflect common HR usage in Australia and New Zealand; figures reviewed annually.