Key Performance Indicators Examples
The percentage of employees that miss work for either planned or unforeseen causes is measured by the absenteeism rate. It is used to evaluate the efficiency of the staff management procedure and pinpoint areas that can be improved.
The formula for Absenteeism rate is:
Absenteeism rate = (Number of Absences / Number of Employees) * 100%
It is calculated by dividing the number of absences by the total number of employees and expressing the result as a percentage.
For example, if a company has 100 employees and 10 of them are absent, the Absenteeism Rate would be 10% (10 / 100 = 0.1 x 100%).
In order to pinpoint areas where the staff management process needs to be improved, it is crucial to track the absenteeism rate over time and compare it to industry benchmarks and historical data. In order to find the issue and take action to lower the absenteeism rate, it’s crucial to measure the absenteeism rate throughout various segments, such as across various teams, positions, or locations.
Absenteeism Rate is a crucial metric for businesses because it enables them to assess the efficiency of their staff management system and make choices regarding employee rules, engagement, and retention.
It’s also important to remember that the Absenteeism Rate should be aligned with the business requirements and end-user needs; a low Absenteeism Rate can indicate a strong employee management process, but it can also indicate that the company isn’t investing enough in employee engagement or employee well-being.
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