The Cost Of Absenteeism
- $300 Billion per Year: The wages lost by U.S. employers annually due to employee stress
- 17 days per Year: The average days lost per employee due to employee stress
- $24.2 Billion per Year: Cost of lost productivity among professionals due to employee stress
According to the U.S. Bureau of Labor Statistics, after one year of employment, a private sector worker in a professional, executive, or administrative position, is allotted an average of 8.5 sick days per year after one year; 9 days after three years; and 9.6 days after five years. After 25 years of employment, this figure rises to 10.6 days per year.
According to a report by Yale Law School, law firms’ annual average stated billable hours for associates is 1700 to 2300 hours. The American Bar Association reports the average hourly billing rate for associates is $370.00.
Assuming your firm does not currently measure the monthly and/or annual financial costs associated with employee absenteeism, below is a formula your firm can use in determining these costs. Though the average days lost per employee due to employee stress-related illness is seventeen, the figures below assume an absenteeism rate of merely three days.
| Assuming Average Annual Stated Billable Hours for Associate: | 1,700 Billable Hours |
| Assuming Number of Weeks Worked, Less 2 Weeks for Holidays and 3 Weeks for Vacation and 1 Week Sick Leave | 46 Weeks |
| Total Number of Associate Billable Hours per Day: | 7.4 Hours/Day |
| Assuming Average Hourly Billing Rate for Associate: | $370.00/Hour |
| Total Value of Associate Billable Hours per Day | $2,590.00 Billed/Day |
| Assuming 3 Days Lost to Stress-Related Illness:Total Annual Revenue Lost per Associate | $7,770.00 |