Fill in our quick cost of absence calculator to see how much absence could be costing your organisation and how much Activ People HR could save you each year.
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Activ People HR helps cut absence costs and unlock higher performance by giving you clearer insights, smarter processes, and a healthier, more engaged workforce.
For most companies, indirect costs often exceed direct costs—especially in roles with specialized knowledge or customer-facing responsibilities. Here’s a practical table showing examples of direct vs. indirect costs of employee absence with realistic monetary estimates for small, medium, and large businesses based on UK data.
| Cost Type | Example | Small Business (10–50 staff) | Medium Business (51–250 staff) | Large Enterprise (250+ staff) |
|---|---|---|---|---|
| Direct Costs | ||||
| Sick pay / paid leave | Daily wage for absent employee | £120–£250/day | £160–£320/day | £250–£500/day |
| Overtime pay | Cover by existing staff | £80–£200/day | £160–£400/day | £400–£800/day |
| Temporary replacement | Agency worker for skilled role | £160–£320/day | £240–£480/day | £400–£1,000/day |
| Medical costs | Employer-funded medical bills | £0–£80 | £40–£160 | £80–£240 |
| Admin processing | HR/payroll handling absence | £15–£40 | £40–£80 | £80–£160 |
| Indirect Costs | ||||
| Lost productivity | Delays in projects / sales loss | £120–£400/day | £400–£1,200/day | £800–£4,000/day |
| Reduced service quality | Complaints, missed deadlines | £40–£160/day | £160–£400/day | £400–£1,600/day |
| Overburdened staff | Lower morale, fatigue | £40–£120/day | £80–£240/day | £240–£640/day |
| Increased errors | Cost of rework, mistakes | £80–£240/day | £240–£640/day | £400–£1,600/day |
| Missed opportunities | Lost deals / partnerships | £160–£800 per event | £800–£4,000 per event | £4,000–£40,000 per event |
Turn Absence into Insight, Not Expense
Unmanaged employee absence costs more than you think — indirect losses can be 4 times higher than payroll costs.
Absence management software helps you spot trends, cut admin, plan smarter, and keep teams productive.
Protect your profits and your people with a system that turns absence data into business advantage.
Join over 100,000 users that chose Activ People HR as their HRIS provider
