Presenteeism has many negative impacts on companies, notably leading to a decline in productivity and team morale.
In dollar terms, presenteeism has been estimated to cost the Australian economy $34 billion a year through a loss of productivity. Some studies suggest that presenteeism costs up to 1.7x an affected employee’s wage.
In tangible terms, the key impacts of presenteeism on workplaces can include:
- Decline in workplace productivity: Turning up to work unwell, unrested or unable to focus can dramatically reduce a staff member’s ability to perform at their best or deliver work to required deadlines. If left unaddressed for an extended period of time, this can hold a business back from reaching its productivity and financial targets.
- Increase illness recovery times: If left unaddressed, short-term health challenges may lead to more significant chronic conditions with longer recovery times.
- Rise in ill-health among your extended team: A single unwell team member attending the office while infectious can cause a spread of sickness among an entire team, department or floor. This means the impacts of presenteeism can extend beyond the individual to impact many staff across any organisation.
- Decline in team morale: The more team members who are turning up to work burnt out or unwell, the more likely they are to feel disengaged from work, which can have a ripple effect on other team members and impact the wider company culture.
The challenge is that most organisations* don’t track or quantify presenteeism, despite the very real impacts this scenario has on reducing work performance and contributing substantially to productivity costs for employers.
*Sources: ScienceDirect, Journal of Organizational Behavior
Keeping reading: Find out more in our guide to the ripple effect of presenteeism and how much it’s costing organisations.