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The True Cost of Absenteeism in the Workplace and How to Manage It

The True Cost of Absenteeism in the Workplace and How to Manage It

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Manage your paid time off all in one place with Vacation Tracker.

Summary

  • Absenteeism hurts productivity, lowers team morale, and is costly.
  • Knowing the different types of absences helps managers handle each situation the right way.
  • A healthy, supportive workplace can help prevent frequent or unexpected absences.
  • Clear attendance rules make it easier for everyone to understand what’s expected.
  • Tracking tools can show patterns in time off and help stop problems before they grow.

Last updated on July 17, 2025

Frequently asked questions

Absenteeism refers to unplanned or unauthorized absences from work, especially when no valid reason or notice is provided. It does not include approved time off like vacation or medical leave.

Absenteeism costs Canadian employers approximately $16.6 billion each year, with mental health-related absences being a major contributor.

Absences can be planned, unplanned, chronic, intermittent, unauthorized, or partial, depending on the cause and whether the time off was approved.

Employers can reduce absenteeism by improving workplace culture, offering flexible schedules, creating clear attendance policies, and using tools to track and manage time off.

Absenteeism is calculated by finding the absenteeism rate, which is the number of unplanned absence days divided by the total scheduled workdays, multiplied by 100.

A standard absenteeism rate typically falls between 1.5% and 3%, though this can vary by industry and workforce size.

Yes. A leave management system like Vacation Tracker provides visibility into attendance patterns, simplifies time-off requests, and reduces miscommunication. This clarity helps HR teams proactively address issues before they escalate into chronic absenteeism.