On-the-job health problem 'presenteeism' and absenteeism
August 2006

Now researchers have documented another productivity headache increasingly affecting employers: on-the-job slowdowns by workers with a variety of medical complaints, from hypertension to arthritis.

Economists have coined a new word to describe the productivity-loss problem: presenteeism.

Researchers at the Cornell University Institute for Health and Productivity Studies (IHPS) and the health-information firm Medstat estimate that companies' on-the-job productivity losses from presenteeism are possibly as high as 60 percent of the total cost of worker illness -- exceeding the costs of absenteeism and medical and disability benefits.

For such conditions as allergies and headaches, on-the-job productivity losses could account for over 80 percent of employers' total illness costs, the Cornell and Medstat researchers report in the first study to add the cost of on-the-job productivity losses from common health problems to total employer health-related expenses.

"All in all, 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," says Ron Goetzel, director of IHPS. He notes that headaches, allergies, arthritis, asthma and mental health-related problems such as depression incur the greatest on-the-job productivity losses.

He observes that the expense of on-the-job productivity losses is in most cases higher than medical costs. "Yet this very large category of expenses has not been adequately considered by employers," he says.

The researchers calculated both an average and a low estimate for on-the-job productivity losses for certain common health conditions.

For headaches, they found the losses accounted for 89 percent of the total cost, using the average estimates, and 49 percent when low estimates were used. For allergies, presenteeism productivity losses accounted for as much as 82 percent and as little as 55 percent; for arthritis, it accounted for as much as 77 percent and as little as 35 percent.

When other costs were added to productivity losses from presenteeism and absenteeism, including health and disability benefits, the costliest conditions for employers emerged as hypertension, heart disease and mental health problems.

The IHPS study found that hypertension costs employers $392 per employee annually, heart disease $368, mental health problems $348, arthritis $327 and allergies $271.

To obtain their figures, the researchers analyzed information from a large medical/absence database of about 375,000 employees, detailing insurance claims for medical care and short-term disability over a three-year period; they combined these data with findings from five published productivity surveys for 10 health conditions that commonly affect workers.

Health and productivity research focuses on the relationship between employees' health and well-being and their work-related productivity.

There are different types of presenteeism and the range of causes is wide. It is important for companies and organizations to diagnose their own problem. After this first step, a strategy for managing this important issue must be considered.

 

Bibliography:

1. Health, Absence, Disability, and Presenteeism Cost Estimates of Certain Physical and Mental Health Conditions Affecting U.S. Employers. Journal of Occupational and Environmental Medicine  2004, Vol. 46, No. 4, April 2004.

2. Cornell University Institute for Health and Productivity Studies (IHPS)

3. The American College of Occupational and Environmental Medicine

4. Medstat