How does absenteeism rate affect turnover rate and vice versa?

2 What is turnover rate?

Turnover rate is the percentage of employees who leave the organization voluntarily or involuntarily during a given period. Turnover rate can be calculated by dividing the number of employees who left by the average number of employees during that period. For example, if an organization has 100 employees at the beginning of the year and 90 employees at the end of the year, and 15 employees left during the year, the turnover rate for that year is 15 / (100 + 90) / 2 = 8.33%.

4 How does turnover rate affect absenteeism rate?

Turnover rate can also affect absenteeism rate in several ways. First, turnover can create a vicious cycle of absenteeism, as employees who leave may cause more stress, workload, or uncertainty for their colleagues, who may then miss work more often or become less productive. Second, turnover can reduce the organizational knowledge, skills, and experience, which can affect the quality and efficiency of work processes and outcomes. This can also increase the likelihood of errors, accidents, or conflicts, which can result in more absences. Third, turnover can affect the organizational culture and climate, which can influence the attitudes and behaviors of employees. If employees perceive that the organization does not value, support, or reward them, they may become less motivated, loyal, or accountable, and more prone to absenteeism.

5 How to reduce absenteeism and turnover rates?

Reducing absenteeism and turnover rates requires a comprehensive and proactive approach that addresses the underlying causes and consequences of employee disengagement and dissatisfaction. Strategies such as conducting regular surveys, interviews, or exit interviews to understand the reasons and patterns of absenteeism and turnover; developing and communicating clear policies and procedures for managing and reporting absences; providing flexible work arrangements; offering competitive compensation and benefits; providing recognition and feedback; creating a positive and supportive work culture; providing training and development opportunities; engaging employees in decision making, problem solving, or innovation; can all help in this endeavor. These strategies can help attract and retain employees, reduce stress, commute time, or work-life balance issues, acknowledge contributions, foster a sense of belonging, enhance skills, increase ownership, and empower employees.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?