Estimate what unplanned absence costs in paid absence wages and overtime to cover the gaps.
Absence hours = employees × absence hours each.
Paid absence = absence hours × paid share × wage.
Cover cost = absence hours × covered share × wage × overtime multiplier.
A distribution center has 40 employees averaging 48 unplanned absence hours a year: 1,920 hours. Half are paid sick time ($17,280 at $18). 60% are covered with overtime at time and a half ($31,104). The estimated yearly cost is $48,384, about $1,210 per employee.
Absence costs show up in several places: wages for paid sick time, overtime to cover, temporary staff and lost sales. This calculator covers the two easiest to measure.
Paid sick leave is a legal right in many places. The goal is to plan for absence and reduce avoidable absence, not to discourage legitimate leave.
A 15-person medical billing office averages 64 unplanned absence hours per employee a year, 960 hours in total. Three quarters of those hours are paid sick time, $15,840 at $22 an hour. Coworkers cover 40% of the hours with overtime at 1.5x, which costs $12,672. The estimated yearly cost is $28,512, about $1,901 per employee.
The total counts two cash costs only: paid absence wages and the overtime used to cover gaps. It leaves out uncovered work, slower service and the supervisor time spent rearranging shifts, so the real cost is higher. Payroll taxes on those wages are not included either, so apply your burden rate for the full employer cost.
No, only wages and overtime.
From your time and attendance records.
No; legal leave must be provided. Focus on avoidable absence.
Better scheduling, cross-training and a clear attendance policy.
Look at what actually happened on absent shifts over a few months: how many were filled by someone working extra hours, how many by a part-timer at straight time, and how many were left short. Only the first group belongs in the overtime share.
If an absence is paid as sick time and also covered with overtime, the business pays for the same hours twice, once at the regular rate and once at the overtime rate. That double payment is what this calculator adds up.
More for the same job
Instead of adding up timesheets before you open the absenteeism cost calculator, let EZTime total employee hours. Book a demo to see it with your team.