Presenteeism

Presenteeism is not just a new buzzword. It is a serious problem. Some employers just fear it. Gone are the days when managers would be impressed when they saw their staff with coughs and colds reporting to work. It was viewed as dedication to work. But now no more. Reporting sick to work is not considered a brave statement that the employee gives to its management.

Earlier employers were concerned with the business cost caused by employee absence from work. Today they are concerned with a sick employee reporting to work. Read more to know why.

Presenteeism is the working sick. Or employees who are at work but not as productive as usual; due to illness or injury, stress or depression. Employees who come to work even when they’re aren’t feeling well may end up costing companies more in lost productivity than their employers pay for sick days and other medical and disability benefits.

Presenteeism is not about malingering (pretending to be ill to avoid working) or slacking on the job (surfing the internet when you should be working) but rather about productivity loss due to real health problems such as allergies, asthma, chronic back pain, migraines, arthritis and depression. These are not the serious illnesses which force people to stay away from work. Generally people suffering from these conditions will come to work but the condition will materially reduce their productivity.

Example : An employee came to work despite having severe ‘common cold’. He kept sneezing in the workplace and in the process infected ten other staff. The result was the office had 11 staff who had to eventually take 3 days sick leave to recover. If the first employee had not reported the company would have lost only 3 mandays. But because he was a working sick he ended up making the company lose 33 mandays.

The employer could look at ways of proactively helping employees to effectively manage their conditions or keep them under control. One way of doing so would be via effective Employee Assistance Programs. Another would be wellness programs.

Employers also need to think of their contributions to these programs not only in terms of the provision of a benefit to employees but as an investment in productivity for the business. An example that has been used in SA to good effect to date would be the provision of a flu injection to all staff at the employer’s expense. Employers would not be able to compel employees to have the injection but may even consider providing an incentive to employees to do so on the basis that this investment is likely to pay off in a reduction in sick days over the following months.

A new study shows that work slowdowns caused by illness on the job, known as “presenteeism,” may account for up to 60% of employer health costs. Researchers say the findings suggest that companies may need to take another look at their health care spending. The study showed that for some common conditions, such as allergies and headaches, on-the-job productivity losses may account for more than 80% of the employer’s total health care costs. If a company’s health plan is poor, for example, disorders may not be well managed. Workers will continue to work and not be as productive, Employers need to weigh the costs of good medical care against the potential for on-the-job productivity losses, which we see are substantial in many areas.

In the study, published in the April issue of the Journal of Occupational and Environmental Medicine, researchers calculated an average as well as a low estimate for on-the-job productivity losses caused by common health conditions and compared it with other costs associated with the condition.

The estimates were based on a database of about 375,000 employees, which included information on insurance claims for medical care and short-term disability over three years. Researchers then combined this information with the findings of five published productivity surveys for 10 health conditions that most commonly affect workers.

The study showed that for many conditions, the costs of presenteeism were far greater than other employer-related health care costs, such as absenteeism or health and disability benefits. For example, presenteeism due to headaches accounted for 89% of the total cost of productivity losses using average estimates and 49% using low estimates. For allergies, the costs of on-the-job productivity losses accounted for as much as 82% and as little as 55%.

This means that from about one-fifth to three-fifths of the total dollars attributable to common health conditions faced by employers appear to be the result of on-the-job productivity losses,.

When other costs were added to losses from presenteeism, absenteeism, and health and disability benefits, the most expensive condition for employers was high blood pressure, with an annual cost of $392 per employee per year, followed by heart disease ($368), mental health problems ($348), arthritis ($327), and allergies ($271).

HOW TO MANAGE AND REDUCE PRESENTEEISM

First, understand the magnitude of problem—-means, measure it. Some ways to measure presenteeism include :

• Assess what is causing presenteeism and what it costs your organization. Use this information to develop an overall health and productivity strategy.
• Analyze the impact of health risks and chronic illness on overall employee absenteeism, workers’ compensation, non-occupational disability and reduced work performance. All this information must be included in your health and productivity management strategy.
• Re-examine your human resource policies and benefit plan designs to look for approaches that support health and wellness and work-life balance.
• Develop a strategy to analyze and strengthen employee commitment; committed employees are more likely to be productive.
• Target lifestyle and disease management programs to control the risk factors; address conditions with the highest prevalence and the most costly disease states.
• Offer Health Education programs and resources to employees to help them save time and reach resolutions to their health and personal concerns; through wellness newsletters, onsite medical support, health presentations and employee assistance programs.
• Increase leadership visibility about commitment to employee health and productivity by investing in communication programs that deliver health and productivity messages.
• The ergonomics team should evaluate the work environments of your employees having high injury rates.
• Create a work environment that discourages excessive overtime and coming to work sick; the hours worked will often result in diminished returns and can damage employee morale, health and productivity.

To limit the impact of presenteeism on productivity, companies must identify the key workforce risk factors driving it and develop strategies to minimize it. Employers who wish to pursue a campaign against presenteeism may wish to put appropriate policies in place which set parameters for the granting of assistance to employees, provide for protection to the company against possible abuse of the benefits and which deal with relevant issues such as medical testing, privacy and confidentiality.

Dr. Ajay Sati.