Absence Calculator – turning absence figures into pounds and pence
When presenting absence data to senior leadership, salary alone (where sickness is on full pay) tells only half the story. The true cost of absence includes multiple layers that quickly add up to eye-watering figures.
Direct Employment Costs (per employee per day)
Base salary ÷ working days per year
Employer's National Insurance (15%)
Pension contributions (minimum 3% employer contribution)
Holiday pay accrual (typically 12.07% of daily rate)
Total: typically 130%+ of base daily salary
Replacement Costs
Agency staff premium (often 20-40% above standard rates)
Overtime payments to cover absent colleague
Training costs for temporary staff
Reduced productivity while cover learns the role
Operational Impact
Management time spent arranging cover (average 30-45 minutes per absence)
Delayed projects or missed deadlines
Customer service disruption
Team morale and stress on remaining staff
Real-World Calculation Example
Employee earning £30,000 annually:
• Daily salary: £129.30 (£30,000 ÷ 232 working days)
• Plus NI, holiday and pension: £167.70
• Management time (45 mins at £40/hour): £30
Total cost per absence day: £327
Department with 10% absence rate:
• 20 employees × 23 days average × £327 = £150,420 annually
Making the Business Case
Present absence costs alongside other operational expenses:
"Our absence costs exceed our annual training budget by 40%"
"Reducing absence by 2% would fund an additional team member"
"Monday absences alone cost us £15,000 last quarter"
Emphasise that investment in absence reduction typically pays for itself:
£5,000 spent on ergonomic equipment vs. £20,000 annual back-pain absences
£3,000 EAP program vs. £25,000 stress-related absence costs
£3,000 EAP program vs. £25,000 stress-related absence costs