THE COST OF PRESENTEEISM
The financial costs for presenteeism are staggering. Studies put the cost to U.S. employers between $150 and $250 billion each year – more than the costs of medical care, prescription drugs and absenteeism combined and representing 60 percent of all productivity losses.
People who come to work when sick are also likely to infect others; namely, coworkers and customers. Nearly 73% of workers surveyed said they caught a cold at work, and 32% blamed their fellow coworkers.
Unhealthy workers are unproductive workers – and they’re expensive. When people don’t feel good, they simply don’t do their best work. The cost of poor health can be three to 10 times the total cost of all employee benefits, because when employees aren’t operating at optimal levels, it takes longer to complete tasks and often leads to mistakes, directly impacting company costs.
SOLVING THE PRESENTEEISM PREDICAMENT
Research has found that less time is lost when people stay home while they are sick versus when they show up and don’t perform at full capacity. What measures can you, the employer, take to address presen- teeism at your workplace?
• Review workplace policies (both written and unwritten). Make sure employees don’t feel obliged to work when they are ill or should be on vacation. Examine and ensure that vacation and sick time policies are not counterproductive. Keep in mind that programs such as disciplinary action may in fact pressure sick employees to report to work, inadvertently encouraging presenteeism.
• Provide paid sick days. Rethink the concept of sick leave. Instead of considering it an expensive entitle- ment, view it as social insurance for employees – something workers may or may not use. According to the National Partnership for Women & Families, the U.S. economy would experience a net savings of $8.2 billion per year if workers were provided just seven paid sick days per year.
• Cross-train workers to handle tasks when someone is absent. Every employee should have a backup who knows how to do the same job.
• Invest in treatments for common illnesses to improve job performance. For example, numerous studies have shown that the cost of paying for employee flu shots or providing an onsite flu clinic is minimal compared to the savings realized through reductions in both absenteeism and presenteeism. More than 60% of survey respondents agree. Reducing the number of employees who contract and spread the flu is a win-win scenario for all.
• Include employee health and well-being among company priorities. There is strong evidence that well-de- signed employee assistance programs, health risk assessments and wellness programs more than pay for themselves by lowering a company’s direct and indirect medical costs.
• Open communication. Develop a company culture where employees are valued and can communicate openly with their management team. Nearly 75% of those surveyed think employers should encourage workers to stay home and rest when they are sick.
• Make an effort to boost employee morale. Once an employee or a family member is actually ill, what can you do? Flexibility is key. Allow employees to visit the doctor during work hours and if technology allows, consider having employees work remotely from home when they (or their children) are ill.
While seasonal illnesses like the flu and common cold can wreak havoc on the workplace, the impact is greater when sick employees continue to show up to work. Keep germs at bay by providing your employees with the right tools and guidance needed to maintain a healthy workplace.
18 | The Retailer Magazine | Jan/Feb
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