Employee Turnover & Absenteeism Causes & Cost


Absenteeism Cost Calculator 

Turnover Cost Calculator 


Absenteeism refers to an employee’s habitual absence from work—often intentional and without any good reason. It goes beyond any absences related to things like occasional sickness, vacations, and other personal time. A few absences here and there don’t normally pose a problem, however absenteeism can become a serious financial/profit drain, especially when employees don’t show up to work unexpectedly for extended periods of time.

Typical causes of absenteeism:

    • Bullying and harassment

    • Burnout, stress, and low morale 

    • Childcare and eldercare 

    • Depression

    • Disengagement

    • Injuries: 

    • Job hunting

    • Partial shifts: (Arriving late, leaving early)

    • Workplace Violence

Costs of Absenteeism: How much does employee absenteeism cost? According to ‘Absenteeism: The Bottom-Line Killer’, by Circadian, unscheduled absenteeism costs roughly $3,600 per year for each hourly worker. Additionally, it also costs roughly $2,650 each year for salaried employees. Daily Pay


Employee turnover trends are on the rise. New-hires often dont make it one year. Not only are you forced to dedicate time and resources to recruiting, onboarding (direct costs) and training a new hire after an employee leaves; your business simultaneously takes a hit internally while the role remains unfilled as well as new hire ramp up time. It’s estimated that two thirds of all sunk costs due to turnover are intangible, including lost productivity and knowledge, brand impact, quality challenges, client satisfaction…which are part of the indirect costs calculation.

Costs of Employee Turnover: Replacing entry level employees cost roughly 50% their annual salary, a mid-level employee costs up to 200% of their annual salary and a high-level or highly specialized employee could cost approximately 400% of their annual salary. Simply Benefits. Final costs depend on what formula is used and whether companies include direct (Recruiting agencies, Interview, Ads..) and indirect costs (Overtime, quality issues, loss of productivity..)

Typical causes of turnover:

    • Relationships and trust

    • Burnout, stress, and low morale 

    • Communication

    • Work Experience

    • Disengagement

    • Lack of career growth, development and opportunity

    • Clarity around work role and responsibilities 

    • No purpose/meaning

    • Work-Life balance, flexibility, autonomy