Absence Rates Recruitment Cost (Individual) Calculator
Estimate the annual cost of an individual employee's absence, cover arrangements, lost productivity and potential recruitment.
Overview
Use this calculator to estimate the cost of absence for one employee and the possible cost of replacing them. Enter their salary, employer on-costs, absence days, cover costs, expected productivity loss and estimated recruitment spend.
How it works
The calculator first adds employer on-costs to annual salary, then divides that figure by working days to estimate a daily employment cost. It multiplies this daily cost by absence days, adds the cost of cover, and estimates unrecovered productivity using your selected percentage. The recruitment cost is then added as a separate one-off cost to show the combined potential impact.
How to use this calculator
- 1Enter the employee's gross annual salary.
- 2Add employer on-costs as a percentage of salary.
- 3Enter the number of paid working days and absence days for the year.
- 4Add the daily cost of agency cover, overtime or other replacement cover.
- 5Estimate the work not recovered during absence as a productivity-loss percentage.
- 6Enter the expected one-off cost of recruiting a replacement and review the results.
Example Calculation
Annual salary
$50,000
Employer on-costs
20%
Working days per year
260
Absence days per year
10
Temporary cover cost per day
$220
Uncovered productivity loss
25%
Estimated recruitment cost
$5,000
Total cost including recruitment
$10,085
For an employee earning 50,000 per year with 20% employer on-costs, 10 absence days, 220 per day of cover and a 5,000 recruitment cost, the estimated combined cost is about 10,085.
Frequently asked questions
What is included in the absence cost?
The estimate includes the employee's paid absence cost, the cost of temporary cover and an estimate of productivity that is not recovered during the absence.
What are employer on-costs?
Employer on-costs are costs paid in addition to salary, such as employer payroll taxes, pension contributions, insurance and employee benefits.
Should I include annual leave as absence?
No. Use unplanned or relevant absence days only. Annual leave is normally a planned part of the employment arrangement and should not be included unless you are assessing it separately.
How should I estimate temporary cover costs?
Use the daily agency rate, overtime cost, contractor charge or estimated cost of additional cover required for the role.
What does uncovered productivity loss mean?
It represents the share of work that is delayed, missed or completed less effectively because it cannot be fully covered by colleagues or temporary staff.
Does the recruitment cost include the new employee's salary?
No. The recruitment cost should cover one-off hiring and onboarding expenses. The replacement employee's ongoing salary is not added separately because the calculation already uses the original role's employment cost for absence days.
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Assumptions and warnings
Assumptions
- The annual salary and employer on-cost percentage reasonably represent the employee's total employment cost.
- Absence days are paid workdays and are separate from planned annual leave.
- Temporary cover costs apply for every absence day entered.
- The productivity loss percentage estimates work that is not recovered through cover, overtime or redistribution.
- Recruitment cost is a one-off estimate for hiring one replacement and is added separately from absence costs.
- Results are estimates and may not include every operational, contractual or administrative cost.
Warnings
- This calculator provides an estimate only and is not financial, employment or legal advice.
- Actual absence and recruitment costs can vary with sick-pay policies, notice periods, vacancy duration, internal cover and local employment requirements.