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The real cost of absenteeism (and how to calculate how much money you’re losing!)

Culture & employee experience
Wellbeing
Article Summary

$1 trillion in lost productivity annually — absenteeism doesn’t show up on a P&L line, it shows up in overtime, missed deadlines, and burned-out teammates picking up the slack.

The national absence rate has risen to 3.2% — and a stricter attendance policy won’t fix it. Illness, caregiving, burnout, and untreated chronic conditions are the real drivers, and none of them respond to disciplinary action. This article breaks down what’s actually causing the rise, what it’s costing employers, and why 1 in 3 engaged Personify Health members have fewer absences every year.

$1 trillion annual productivity loss 3.2% national absence rate 4x more absences with poor mental health 1/3 engaged members fewer absences 4.3% healthcare sector rate Free absence rate calculator

Somewhere in your organization right now, a team is short-staffed.

A project is delayed because the one person who understands it called in sick.

A manager is quietly rearranging next week’s schedule for the third time this month.

That doesn’t show up on a P&L line called “absenteeism.” It shows up everywhere else instead: in overtime, missed deadlines, and burned-out employees picking up the slack.

Absenteeism, by the numbers

Here’s what workplace absence is actually costing American employers right now:

What’s driving the rise in employee absence

The data points to a few consistent culprits:

A stricter attendance policy doesn’t treat a chronic condition, arrange childcare, or fix burnout;  it just penalizes the symptom while the cause keeps running.

Illness. Caregiving. Burnout. The leading causes of absence all trace back to the same thing: people not getting the access and support they need.

And none of them can be fixed or improved with a disciplinary.  

The good news? We can help improve your absence rates with healthcare access, flexibility, and an award-winning, engaging health & wellbeing platform that intervenes before someone hits a breaking point.

In fact, 1/3 of our engaged members have fewer absences ever year.

So, that bears the question… “Okay… what now?”

Calculate your workforces’ absence rate

Before you do anything, you need to work out your absence rate.

And we’ve built the Absence Rate Calculator for you.

The national average Absence Rate is 3.2%. Anything below 1% and you should consider yourself a very healthy workplace!

The difference between a 2% and 3% absence rate can cost your business tens of thousands of dollars. There’s only one way to get ahead of this expensive, yet preventable, issue.

Five minutes with the numbers tells you exactly where you stand. What you do with that number is where the real savings start.

Prevention is the best investment you can make

Discover how Personify Health’s clinically-backed wellbeing solutions improve outcomes for individuals and organizations alike – no matter where you are in the world.