Cost of Presenteeism Surpasses Absenteeism
- March 25, 2017
- Posted by: marlenedubois
- Category: Home Health Aide Training
The cost of presenteeism has today surpassed the cost of absenteeism. Presenteeism, which refers to sick employees who come to work instead of staying at home, today surpasses $180 billion annually. Absenteeism, where the employee does not report to work, costs $118 billion annually in addition to medical expenses in addition to lost productivity.
Employee “illness” can be grouped into 5 different categories. The Society for Human Resource Management (SHRM) breaks down the impact in which way:
1. Personal illnesses account for 35%
2. Family issues make up 21%
3. Personal needs combine for 18%
4. An entitlement mentality accounts for 14%
5. Stress makes up the final 12%
The SHRM figures refer to absenteeism alone, therefore may not be applicable within the same percentages to presenteeism. However some presenteeism will fall in each of the categories. which occurs when, for example, an employee has family issues to deal with however they do not feel the entire day needs to be taken off of work. They will make the necessary phone calls to resolve the family issues on company time. within the case of the entitlement mentality, when employees see different employees taking long lunches or breaks or doing personal phone calls on company time they feel they are also entitled to do the same.
which will be important to note which in some cases presenteeism contributes to the cost of absenteeism. which occurs when an employee will be contagious in addition to spreads germs to different employees within the workplace. These newly infected employees will elect to deal with their illness through either absenteeism or presenteeism.
A likely culprit within the increase of presenteeism will be a lack of “no-fault” sick time. No-fault sick time refers to allowing employees to take their sick time without having to provide an explanation of why the time will be taken. which reduces the amount of presenteeism as employees no longer feel they must act sick to qualify for a sick day. However once an employee begins to run out of sick time, or will be only allowed minimal sick time during the year, presenteeism becomes a manner of choice when dealing with the 5 areas identified by SHRM.
According to Multicultural Business Council (MBC), a cultural empowerment organization based near Detroit, Michigan, absenteeism policies are creating specific cultures within the larger corporate culture. When an employee adjustments jobs via a company which incorporates a restrictive absenteeism policy to a company having a less restrictive absenteeism policy, they will quickly learn to adapt to the fresh culture. However, employees moving within the opposite direction, via less restrictive to more restrictive absenteeism policies will take longer to adopt to the culture of the company.
which seems an entitlement mentality will be a key player as employees look at sick pay policies at their company versus the policies at companies have previously worked with or have friends or family working for. Understanding the motivational factors of a team of employees can reduce the negative impact via presenteeism in addition to absenteeism.