The essentials in 30 seconds

Everyone knows when there are too many absences. But few companies measure absenteeism consistently — which means they rarely manage to improve it deliberately.

What is absenteeism

Absenteeism is unplanned absence from work. It includes unjustified absences, sick leave prolonged lateness, and abandonment of post.

It does not include (generally): planned holidays, public holidays, parental leave, or training.

The absenteeism rate formula

Absenteeism rate = (Unplanned absence hours divided by Possible working hours) times 100

Example: a company with 15 employees in March (22 working days, 8h/day):

• Possible hours: 15 times 22 times 8 = 2,640 hours
• Unplanned absence hours: 96 hours
• Rate: (96 divided by 2,640) times 100 = 3.6%

What is normal in Portugal

RateAssessment Below 2%Excellent 2% to 4%Normal or acceptable 4% to 6%High — requires attention Above 6%Critical — intervention needed

Portugal has historically one of the highest absenteeism rates in Europe, particularly in industry.

Why measure instead of just feeling it

With consistent measurement you can identify patterns by period, shift, or department. For example: is January always worse? Does the afternoon shift have twice as many absences as the morning shift? These patterns are invisible without data.

If there is a pattern of recurring medical certificates or chronic lateness, objective data is also the foundation for difficult conversations and disciplinary proceedings.

The real cost of absenteeism

Direct cost: salaries paid for work not performed, or overtime paid to colleagues who cover.

Indirect cost: lost production, compromised quality, and affected team morale.

A conservative estimate for an industrial SME with 30 employees and a 5% rate: the annual cost easily exceeds €15,000 to €25,000.

How to calculate without manual effort

With manual time-tracking (paper or Excel) this calculation takes hours and is prone to errors. With Picco, the monthly report includes hours worked and absences coded by type. The absenteeism rate can be calculated in seconds from the exported data — and compared month by month.

To make decisions based on this data, consider implementing regular performance reviews where these numbers enter the conversation.

picco.damastor.com