Definition of Incidence rate:
Incidence rate is the number used to measure the level of injuries, mishaps, illness across the entire organization or industry. It is the total work-related injuries per 100 employees in one year time. This is done over a standard period to help compare data over a period of time.
How is Incidence rate used in companies?
- Negative impact on the employee morale. As more and more employees leave, it creates a chain reaction, causing loss of productivity and dissatisfaction among existing employees.
- When experienced employees leave, company’s performance falls on the lesser experienced employees, with lesser capability and knowledge.
- It affects the bottom line of the company. Companies end up losing money they invested in their employees and have to spend again on hiring replacements.