Presenteeism
Volume 5, Number 7
The direct and indirect costs associated with absenteeism are obvious and easily documented. Unfortunately, employers may be unaware of the hidden costs of presenteeism, which is a reduction in productivity when employees come to work suffering from such illnesses as work and non-work-related musculoskeletal disorders (MSDs), headaches, allergies, a cold, the flu, and even more serious health concerns, such as hypertension and cancer.
Measuring the Cost of Presenteeism
Attempting to quantify the cost of presenteeism is a relatively new phenomenon. Compared to absenteeism, where the 100% productivity loss is obvious, presenteeism's effect is much harder to measure.
According to the Cornell Institute for Health and Productivity Studies, the MEDSTAT Group, and Lynch Consulting (Journal of Occupational and Environmental Medicine, Vol. 46 No. 4), on-the-job productivity losses associated with presenteeism exceed the costs of absenteeism, as well as medical and disability benefits. Of the total cost of employee illness, 18% to 61% is estimated to be due to presenteeism.
Preventing Presenteeism
- Employee health education
The first step in reducing productivity loss due to health issues is identification and proper diagnosis. Many of the costs associated with presenteeism are from manageable chronic illnesses, such as arthritis, depression, migraine/headaches, and allergies. Improved employee education teaches employees how to manage their illnesses effectively by introducing treatment options, including alternative pharmaceutical treatments. On the preventive side, wellness programs that encourage employee pursuit of a healthy lifestyle provide employers with an opportunity to stem the development of illnesses.
- Paid sick leave
Preventing the spread of illness to coworkers and the general public should be everyone's goal. Unfortunately, employees often come to work sick when approximately 48% of the private sector U.S. workforce receives no paid sick leave. Given that presenteeism costs more than absenteeism, it makes good business sense to provide employees with paid sick leave to promote an overall healthier working environment.
- Address ergonomic issues
Employees suffering from MSDs resulting from poor ergonomics often operate far below capacity as their bodies attempt to compensate and avoid pain. Ergonomic issues should be addressed through process change and workplace redesign before the development of fatigue, discomfort, pain, and possibly loss of function. Involving employees in these processes ensures that their input is taken into account and gives them some control over their workplace.
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The information herein is for reference only and State Fund does not warranty its accuracy or fitness for a particular purpose. Any products, references, or links to Web sites are not an endorsement by State Fund or its employees, but serve only as examples to assist you with your workplace design changes. State Fund cannot be held liable or accountable for content on linked Web sites.
