Employees missing work due to physical illness or mental health difficulties cost American businesses billions of dollars each year. Many firms also suffer from absenteeism, which occurs when employees miss work regularly for no apparent reason. However, research is increasingly indicating that failing to address presenteeism can cost organizations a lot more money.

Because of the COVID-19 pandemic, many businesses are under a lot of pressure to stay productive and profitable. While it may appear a priority to reduce the cost of absence from illness, there is rising evidence that presentness (continued working when unwilling) is significantly more expensive than absence.

In this article:

Presenteeism in the workplace

If you’re not familiar with the phrase, presenteeism refers to the habit of employees reporting to work when they are sick, overtired, or otherwise incapable of performing at their best.

Even though it is a problem that is rarely acknowledged, presenteeism is regarded to be ubiquitous in most companies. Employees routinely report to work while being ill, in physical or mental pain, or dealing with a stressful scenario that interferes with their ability to concentrate.

According to research from the Mental Health Foundation and LinkedIn, the majority of HR managers believe that the widespread move to remote working during lockdown has increased e-presenteeism, which has the potential to harm employee mental health and promote burnout over time.

Absenteeism in the workplace

Like presenteeism, Absenteeism In the workplace is also a well-known cost for small businesses. Absenteeism is when an employee is away from work regularly, it is referred to as absenteeism. This does not include paid leave or times when a company has given an employee time off.

According to the CDC, productivity losses due to absenteeism cost companies in the United States $225.8 billion per year, or $1,685 per employee. 💸🔥💸🔥💸🔥💸🔥💸🔥

Difference between presenteeism and absenteeism

The difference between both is that the employees who are absent without cause are said to be absenteeism. In contrast, employees who are present but are not working effectively and productively due to illness are said to be presenteeism.

What is the cost of Presenteeism?

Number of working and productive days lost due to presenteeism

In recent years, well-publicized studies have calculated the national expenses of a number of prevalent workplace illnesses in the United States. Last year, two publications published in the Journal of the American Medical Association estimated that depression costs US companies $35 billion a year in lost productivity and that pain diseases like arthritis, headaches, and back pain cost nearly $47 billion.

Costs associated with presenteeism are an open and possibly considerable drain on a company’s bottom line. 

Walter F. (“Buzz”) Stewart, a director of the Center for Health Research & Rural Advocacy at Geisinger Health System in Danville, Pennsylvania, believes that “pain, no matter what the cause, will always convert into lost time at work.”

Researchers have also attempted to assess the effect of disease on job productivity in general. Stewart’s study team assessed the entire cost of presenteeism in the United States to be more than $150 billion per year, using the same methods used to estimate the expenses of depression and pain—a yearly telephone survey of 29,000 working individuals termed the American Productivity Audit. 

According to a poll conducted by Virgin Pulse Global Challenge, employees in their study took an average of 4 sick days per year. Still, the time they lost on the job (i.e., being present but not working effectively) was 57.5 days per year.

Furthermore, the majority of research shows that presenteeism is significantly more expensive than illness-related absence or impairment. 

However, given such figures, presenteeism may be a higher cost to companies. Workers who are there but cannot perform to their full potential due to illness or other health issues cost US firms billions of dollars each year. 

What are the most prominent causes of Presenteeism?

The overall cost of presenteeism in the workplace
Source: Exercise Right

While the causes of presenteeism at work vary based on the industry and job type, the following are the most prominent contributing factors:

1. Households with two earners and “sandwich generations”

According to the Bureau of Labor Statistics, dual-earner households make up about half of all married couples. Many individuals will go to work while they are unwell in order to conserve their limited sick days for when their children are sick because they do not have a permanent full-time carer for their children. These individuals will also work while they are ill in order to avoid taking time off to care for their children.

The 25 million Americans who offer informal care for an aging relative or friend who needs assistance with basic personal requirements and daily activities have been added to the mix. The “sandwich generation” refers to people who care for aging parents while still raising their own children.

2. Fear of repercussions

Some employees go to work when they’re unwell because they’re afraid of seeming less committed to their employment. A day or more off can also entail entrusting job obligations to coworkers or missing work deadlines.  

Many employees are concerned that using sick leave will make them appear less dedicated to their careers than their coworkers. Some people are anxious that missing work would result in disciplinary action, a lack of advancement, or the loss of their employment.

3. Few or no paid sick days provided

According to a 2017 survey by the Bureau of Labor Statistics, 68 percent of private-sector employees had access to paid sick leave on average. However, management and finance occupations account for the biggest proportion of workers who receive paid sick leave. 

Paid sick leave is available to 46 percent of service workers and 47 percent of construction workers, respectively. As a result, many employees report to work when they are sick in order to avoid losing their salary.

Every work environment has its own culture. Many blue-collar professionals do not receive any paid sick leave. As a result, a sick employee will come to work to avoid losing money.

How we’ve tackled this: unlimited sick days. People can easily catch up on important meetings when they’re well with tl;dv and other important notes via Slack. <image from our handbook>

4. Self-esteem and loyalty

Others go to work unwell because they don’t want to disappoint their coworkers and believe that no one else can do their job or that the company would suffer if they are absent. The majority of people are concerned about doing a good job and contributing their fair share. 

Some people will work while sick to avoid disappointing the team; they may also be anxious that no one else is capable of performing the job as well as they do.

5. Excessive workload

Coworkers may be burdened with additional responsibilities if you take sick time. Employees also fear returning to a backlog of work, missed deadlines, and more jobs to complete.

When all of these factors are considered, it is easy to see how a “culture of presenteeism” could emerge. People feel forced to come to work even if they are sick, and staying at home causes them to worry and guilt.

  • We have tackled this in a variety of ways. This one will require constant iteration. Firstly, retros are really great opportunities to reflect on the previous sprint of a period’s workload. We have these bi-weekly. 

Companies can try capacity planning to evenly distribute workload by forecasting demand and efficiently allocating resources, ensuring that teams are neither overburdened nor underutilized. This proactive approach optimizes productivity and maintains consistent service levels.

Ways to manage Presenteeism

Managing presenteeism effectively not only saves money in the short and long term, but it also boosts employee engagement and productivity. Managers and supervisors must then be made aware of the scope of the problem, given the skills to handle it, and held accountable for handling sick personnel responsibly. Here are five suggestions to help you prevent sickness in your workplace.

Try to recognize the issue

Recognizing that there is an issue in the first place is frequently the first step in solving it. Employers may be unaware of the amount of presenteeism impact because it goes unnoticed. If you’re a business owner, now is the moment to educate your employees about the problem and the escalating expenses of presenteeism. A company that ignores the problem of presenteeism may find that it has a negative impact on its bottom line.

Provide a comprehensive health-benefits package

People frequently arrive at work sick because the cost of visiting a doctor or seeking other medical treatment is prohibitively expensive. Offering a tax-advantaged benefit account, such as a Flexible Spending Account (FSA) or a Health Savings Account (HSA), can assist employees in managing their healthcare costs. 

They can use the accounts to see a doctor or pay for the meds they need to get better. Consider offering compensated sick days if you don’t already. You may profit from lower employee turnover, higher productivity, and a reduction in the spread of contagion in the workplace, in addition to delivering a desirable benefit to your employees.

Create a presenteeism policy for your workplace

Clear rules should be included in the policy, and they should be conveyed to all levels of the business. Providing enough paid sick leave or time off can also assist in limiting the number of people who come in sick.  

Employees must understand your company’s policy on coming to work sick, as well as the consequences of doing so. Create and distribute rules. Assist employees in understanding when it is appropriate to stay at home and when it is acceptable to return to work.

Employees should also be aware of when they should stay at home and when they can return to work. Make it a policy to send sick employees home and allow them to work from home when they cannot work.

Improve employee morale by increasing flexibility

According to studies, unwell workers are more likely to show up for work in organizations with low morale. Allowing employees some flexibility in their work schedules might help raise morale and reduce absenteeism. It also promotes a work environment that discourages individuals from reporting to work unwell. 

Morale has a considerable impact on the incidence of presenteeism, according to the CCH survey. They discovered that organizations with poor morale had more sick employees. 

According to their research, presenteeism is a problem for 52 percent of firms with “poor/fair” morale, compared to only 31 percent of businesses with “excellent/very good” morale. Allowing employees some flexibility in their work arrangements is one method to enhance morale. Employers who do so assist employees in balancing work and family obligations, as well as achieving a healthy work-life balance.

Try to improve productivity of employees

One of the most effective ways to boost workplace productivity is to foster a culture that prioritizes employees’ health and well-being over profits or deadlines. Attempting to understand the causes of stress and addressing them with increased support for employees might enhance the workplace productivity of employees.

At tl;dv, we emphasise the value of deep-work and the non-need to reply to messages instantly. This can increase focus time and minimize distractions.

Set a positive example

As the boss, stay home if you are sick or can’t function efficiently. Do not distribute your germs to the office to others. Do it on the telephone or by email if you believe you must be ready to address any crises.

Having the CEO or another senior executive break a company policy is the easiest way to encourage staff to disregard it. If you want your employees to stay home when they’re sick, you’ll have to do the same.

Send unwell staff home

Many businesses with presenteeism issues say they try to alleviate the problem by sending sick employees home. 

They attempt to create a culture that discourages employees from reporting to work when they are unwell, and they do not make employees feel obligated to report to work even if they are unwell. When employees are unable to work due to illness, they are given the opportunity to telecommute and work from home.

Final thoughts on presenteeism

Employers must make a concerted effort to create a work environment where employees are healthy and well-functioning. This will help the organization accomplish its productivity and profit goals, as well as develop a positive work culture and environment for its employees.

It may seem contradictory that having sick employees stay at home instead of going to work saves money, but data backs it up. Presenteeism is actively discouraged at work, which saves you money and makes your staff and customers feel safer and healthier. Reducing presenteeism benefits everyone who interacts with your company when done correctly.

Whilst we’re on the topic, check out my own personal thoughts on why rigid routines suck!