Absence rate
The share of theoretical working time lost to unplanned absences, mainly sick leave. In services firms it sits on the activity rate denominator, so the counting convention shapes the number.
Definition
The absence rate measures the share of theoretical working time lost to unplanned absences, sick leave first of all. Planned vacation is not absenteeism and stays out of the measure, which keeps the two indicators readable on their own. A firm that tracks both separately can tell planned time off apart from availability it simply lost during the period it reports on.
For a services firm the number matters because it sits on the denominator of activity rates. Whether unplanned absences reduce that denominator is exactly the disputed counting convention between firms. Two firms with the same sick days can publish different activity rates, so the convention has to be chosen before the number means anything to anyone reading it.
Formula
Absence days divided by theoretical working days, multiplied by 100. Vacation days are removed from the count.
Example: 3 absence days in a month of 21 theoretical working days is about 14%.
Why it matters
On a services firm the cost is direct: a mission day lost is revenue lost, or coverage bought somewhere else at a margin you did not plan. Short repeated absences disrupt client missions more than rare long ones, because they break continuity week after week. And because absences feed the activity denominator, a drifting absence rate quietly moves the numbers leadership steers by.
How to bring the absence rate down
- 1
Record absences as they happen, not at month end, so the activity denominators stay honest and the rate you publish matches what actually occurred.
- 2
Distinguish short repeated absences from long spells before acting: the causes differ, and so do the fixes worth trying on each side.
- 3
Read the rate per team and per month. A company-wide average hides a problem that concentrates in one place and one period.
How Okouro shows it
Okouro keeps time off and absences on the same calendar as assignments, so the working calendar behind your activity rates stays current as people book leave or report a sick day. A free plan lets you start there.