In order to run a successful business in the UK, it’s important to understand how to calculate lost time rate. This calculation will help you determine how much money your business is losing due to employees not being available for work. See our lost time rate calculator below,
In this article, we’ll walk you through the steps of how to do this calculation and provide some tips on how to reduce the amount of lost time.
How to calculate lost time rate?
The lost time rate is the amount of lost hours as a percentage of the total maximum possible hours worked.
The mathematical formula is:
( [Number of missed hours] divided by [Maximum possible work hours] ) multiplied by 100
For example if your employee could work a maximum of 40 hours per week, and they missed 3 hours of work, then the sum would be:
(3 ÷ 40) x 100 = 7.5%
In this example the answer would be a lost time rate of 7.5%.
What factors contribute to a high rate of lost time
There are a number of factors that can contribute to lost time, such as:
- Employees taking sick days
- Employees taking holiday days
- Employees being absent for other reasons (such as jury duty or bereavement)
Why is the lost time rate important for businesses?
The lost time rate is important for businesses because it can have a direct impact on the bottom line. Lost time costs businesses money in a number of ways, including:
- Wages for employees who are not working
- The cost of training new employees to replace those who left
- Lost productivity due to absences
What constitutes a high lost time rate?
There is no definitive answer to this question as it will vary from business to business. However, a lost time rate of more than five percent can be considered high and should be investigated further.
If you’re concerned about the lost time rate at your business, there are a number of steps you can take to reduce it. By taking proactive measures and communicating with your employees, you can help to keep lost time to a minimum.
How to reduce lost time rate
There are a number of ways that you can reduce the amount of lost time at your business. Some tips include:
- Encouraging employees to take their holiday days
- Offering flexible working arrangements
- Having an open communication policy so that employees feel comfortable talking to their supervisor about any absences
- Offering employee assistance programs that provide support for employees who are dealing with personal issues
How does lost time rate compare to the Bradford Factor method?
The Bradford Factor is a calculation that is used to measure employee absence. It takes into account the number of times an employee has been absent, as well as the length of their absences, while the lost time rate only looks at the total number of hours missed.
The Bradford Factor can be more useful for businesses who want to get a more detailed picture of employee absences, while the lost time rate is more useful for calculating the financial impact of absences.
Both the Bradford Factor and lost time rate are important tools for businesses to have in their arsenal, and can be used together to get a complete picture of employee absences.
Is the lost time rate a useful calculation?
The lost time rate is a useful calculation for businesses because it provides a snapshot of how much money the business is losing due to employees not being available for work.
It can help you identify areas where you need to make changes in order to reduce the amount of lost time. For example, if you have a high lost time rate due to employees taking sick days, you may need to implement a more effective sickness policy.
The lost time rate calculation can be helpful for businesses in a number of ways, including:
- Determining the financial impact of employee absences
- Spotting areas where improvements can be made to reduce lost time
- Helping to identify policies or changes that could have a positive impact on the business bottom line.
If you’re looking to improve your lost time rate, start by taking a close look at your attendance policy and making sure it’s up to date and effective. You should also consider offering flexible working arrangements and employee assistance programs, as these can help reduce the amount of lost time due to absences.
Finally, make sure you have an open communication policy in place so that employees feel comfortable talking to their supervisor about any absences. By taking these steps, you can help reduce the amount of lost time at your business.