Presenteeism: The Hidden Costs of Business

(prez.un.TEE.iz.um) n

Presenteeism, a comparatively unknown idea, is the complement of Absenteeism. It is defined because the measure of misplaced productiveness price resultant from staff really exhibiting up for work, notwithstandin not being perfectly engaged and productive primarily attributable private well being and life difficulty distractions. Currently, Presenteeism is estimated to be as a good deal like 7 ½ occasions extra high-priced to employers than absenteeism. (1)

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Statistically, Presenteeism rears its ugly head and exhibits itself for what it truly is... a high-priced, well unseen risk to employers. It is taken into account a risk attributable its concealed nature. The period of time itself is new, entirely late added to our language. Considering the next shivery statistics, your online business could also be in peril.

o Presenteeism accounts for 61% of an staff whole misplaced productiveness and medical prices. (4)

o Presenteeism prices employers an estimated $2000/yr/worker. (10)

o Employees working at diminished capability price employers $250 Billion/yr. (8)

o 42% of staff anticipate elder care points over the resultant 5 years. (2)

o 37% of staff with present elder care points have misplaced work time per week, a complete of (11) hours/wk spent. (2)

o On common, staff spent about Eight hours over the earlier two-weeks off work, associated to giving care. Some of that was paid, equivalent to sick go away or trip time, and a couple of was unpaid. (5)

o One of probably the most generally requested sources from EAP's are authorized companies to cowl property planning, house regulation, divorce, actual property, chapter and different non-workplace points, accounting for 60-70% of all EAP requests from staff. (2)

o 64% of extra absences are resultant from house points 22%, private wants 18%, an entitlement mentality 13% and stress11%. (9)

o 30% of staff come to work no to a little degree 5 days when they're too distracted to be efficient. 28% of employees took day off for care giving and 25% took no to a little degree 1 hour/day to take care of private points. (7)

o Costs of absenteeism have up from $610/worker/yr in 2000 to a median of $789 per worker in 2002. (6)

o Of all the bills associated to absence, extra day off has the most important affect on productiveness, gainfulness and morale. (9)

o 49% of staff lose productiveness at a charge of 1 hour or extra/day resultant from stress, 40% lose 1-2 days/yr, 37% lose 3-6 days/yr, and 23% lose greater than 6 days/yr of productiveness resultant from stress. 44% of staff come to work 1-Four days/yr when too drawn to be efficient, 19% of staff come to work greater than 6 days/yr when too drawn to be efficient. (3)

o 68% of staff take frequent "stress breaks" busy to speak with others. (7)

So, what power be finished? Some will argue "Do nomatter" and it'll work itself out, in spite of everymatter, these points have been part of worker/employer dealings for years. While that could be well true, the precise related prices of Presenteeism are rising, often with out the aware data of the employer. Those "hide your head in the sand" approaches to enterprise operation often spell d-o-o-m. Ignorance regarding any threatening, rising, unfulfilled operational downside will for certain be high-priced.

Potential Solutions: Employers should start to encourage sick or agitated employees to remain home and get applicable medical or masterly consideration earlier than returning to work. Consider funding or partially funding an on-site day-care facility. There are many profitable fashions to emulate. Consider increasing or modifying private go away insurance policies to higher support staff. Expand EAP packages to supply further worker help in a variety of emotional and house points. This additionally has the unseen good matter about enhancing goodwill and demonstrating to staff that their employer cares about their considerations. While these actions power look like high-priced, they're really an funding in your online business.

Awareness is the important matter, the origin, the start of discovering options. Study your operations in gentle of the earlier statistics. Take actions to organize for these inevitable conditions and construct their related prices into your online business mannequin, moderately than being caught unexpectedly on the finish of the commercial enterprise yr with drastically diminished revenue margins and not exploitation a cheap rationalization. Smart enterprise individuals will turn into conscious of the prices of Presenteeism and take motion up-front to guard their enterprise.

Bibliography and References:

  1. 1999 research by The Employers Health Coalition of Tampa, FL
  2. Risk and Insurance, March, 2004
  3. Business Legal Resources, April 24, 2003
  4. New Cornell University research, written in April 2004 of the Journal of Occupational and Environmental Medicine. A research of 375,000 staff over a 3-year interval
  5. Recent Financial institutionOne survey of staff
  6. Dee W. Edington PhD, Director, Univ. of Michigan Health Mgmt Research Center
  7. Elevated Stress Levels Lead to Presenteeism, by Richard Chaifetz, CEO of ComPsych, provider of EAP packages
  8. Bulletin to Management, 12/5/2002, BNA Professional Information Center
  9. Braun Consulting News, 2003 CCH Unscheduled Absence, Business Insurance July, 2000, and the US Bureau of Labor Statistics
  10. Cigna Behavioral Health, April 26, 2004


Presenteeism: The Hidden Costs of Business

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