Absenteeism and Presenteeism – The Cost to Employer

We all know the frustration staff absent from work can cause a business, but there is another less directly recognisable challenge that faces many employers today, presenteeism!

Presenteeism refers to staff “being at work but not being on the job” (i.e. functioning to full capacity) because of illness or other medical conditions.

This issue is not about staff being lazy, rather it’s about genuine health issues impacting an individuals ability to fully function; presenteeism can cut individual productivity by a third or more (by both slowing the employee down and increasing the number of mistakes they make), and according to surveys on this issue can be more costly than absenteeism.

So what are the numbers?

According to a survey completed by a well known Healthcare Society and conducted by TNS Coversa in Nov 2008, the survey found that employers are likely to be paying a surprisingly high cost for the poor health of their employees. Most of this cost is coming from the hidden cost of “presentee days”. The average cost per employee per year for absenteeism and presenteeism is estimated at over $1,500! Presenteeism alone accounts for 2/3 of this cost!

How does an employer reduce these costs?

While Workplace Wellness can provide all the services and processes to help prevent staff from having a long term illness, (the safety fence at the top of the cliff), there are still times when a staff member will suffer a serious illness or accident. Camelot can help employers provide the safety net at the bottom of the cliff via a tailored Workplace Health Insurance that is specifically designed with the employer and staff in mind.

For a no obligation review of what you can do to help reduce the number of presentee days, contact Camelot Staff Benefits on 03 366 7057 or Email: StaffBenefits@camelotgroup.co.nz

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