How to Define Absenteeism and Stop It From Becoming a Bigger Problem

When employees aren’t well or juggling too much, elevated rates of absenteeism are one signal for organizations to look for. And that signal comes at a cost for organizations. The CDC reports that cost at $1,685 per employee per year. For an organization with 600 employees, absenteeism costs would exceed $1 million annually. That’s why it’s essential to define absenteeism, so organizations can see what’s driving it and address those factors before it becomes a bigger (and more expensive) issue. 

How to define absenteeism 

Absenteeism refers to frequent or prolonged absence from work, often beyond what is considered normal or acceptable. While occasional absences due to illness or emergencies are expected, consistent absenteeism can signal underlying challenges such as stress, burnout, or unmet mental health needs. 

High levels of absenteeism can affect workplace productivity, team morale, and overall organizational performance.

Is absenteeism on the rise? 

Absentee rates in the U.S. have been stubbornly high since the COVID-19 pandemic. In 2019, the Bureau of Labor Statistics (BLS) reported a workplace absence rate of 2.8%. In 2024, that number had reached 3.2%. In some sectors, such as healthcare support and social services, the rate is well over 4%. 

An important note: the BLS absence rates only include time missed for illness, injury, or childcare challenges—not time off for vacations, personal days, or holidays. 

What is the difference between absence and absenteeism?

Generally speaking, an absence from work would include any type of reason for missing work. Absenteeism includes only consistent absences from work that are often unplanned or unusual, and these absences could be a sign of a chronic, underlying, or organizational problem. 

What is an example of absenteeism? 

A customer service manager at a large retail chain takes a three-week leave due to burnout. To fill the gap, the team rotates coverage across three other managers. While the department remains technically staffed, key performance indicators begin to decline, including:

• Response times slow
• Customer complaints increase
• Team morale

Additionally, each replacement manager struggles to juggle their own duties with the added load.

According to SHRM, replacement workers are typically around 30% less productive than the employees they're covering for, which means you're not just paying more in labor, you're getting less done. Multiply that across multiple departments and extended absences, and the cost of absenteeism becomes both a financial liability and a cultural risk.

What is the connection between employee mental health and absenteeism?

Physical and mental health are intertwined, so there can be a connection when absenteeism occurs due to illness, injury, medical problems, or child care problems. If an employee is missing work due to a chronic health condition, it may start to feel like too much. When absenteeism occurs outside an employee’s typical pattern, it could be a sign that their mental health is being impacted.

How do you calculate your absentee rate? 

You can calculate your organization’s absentee rate with a couple key data points: 

• Number of unexcused absences
• Number of potential days of work during a time period

The formula you’d use to calculate absentee rate is: 

(Days of unexcused absences) / (Days eligible to work) x 100 = absentee rate

For example, Team A has five employees. Those employees had six unexcused absences in the month of October (which had 115 total eligible workdays across five employees), the absentee rate would be: 

(6/115)x100=5.2%

That rate is quite a bit higher than the national average and is probably worth a deeper dive. 

What should your absentee rate be? 

An ideal absentee rate is as close to zero as possible. But especially for large employers, there’s always going to be some amount of absenteeism. The current BLS rates, particularly within your industry, can serve as a benchmark for your organization. 

7 tips to help you reduce absenteeism

If you’ve determined your absentee rates require attention, here are a few suggestions on how you can support employees in a way that drives down absenteeism and preserves organizational wellbeing and productivity: 

Track types of absences

Not all time away from work signals the same challenge. Track and analyze patterns, like spikes in unplanned absences after stressful project cycles, or frequent Monday/Friday call-outs. This data can reveal whether absenteeism stems from burnout, job dissatisfaction, safety concerns, or deeper organizational issues.

Offer a modern mental health solution

Traditional EAPs are seeing declining relevance, with utilization often under 5%. Consider upgrading to an enhanced EAP that offers fast access, full-spectrum care, and proven outcomes. Employees are more likely to engage when they know the support is high-quality, confidential, personalized, and stigma-free.

Provide flexible work options

Rigid schedules can worsen absenteeism, especially for caregivers, neurodiverse employees, or those with chronic conditions. Consider hybrid or flexible scheduling to create breathing room. When employees have more control over how they work, they’re more likely to stay engaged. This is particularly true for your employees who are parents or caregivers. 

Encourage PTO use

Burnout builds when time off is earned but unused. Encourage employees to actually take their paid time off—not just in response to exhaustion, but as proactive recovery. Normalize rest as a productivity strategy, not a privilege.

Keep employees engaged

Disengagement is one of the most common predictors of absenteeism. Make sure your employees feel their contributions matter, that their work is connected to purpose, and that recognition happens frequently. Low engagement often precedes physical absence.

Equip your managers to support others

Managers are your first line of defense against burnout, but many are burned out themselves. Equip them with training and resources to recognize early warning signs of distress, manage workloads compassionately, and foster a culture of psychological safety.

Review your safety protocols

Unaddressed workplace safety issues—whether physical, psychological, or environmental—can drive absenteeism. From ergonomic risks to workplace harassment, unresolved safety concerns often lead to avoidance behavior. Make sure your workplace is physically and emotionally safe.