Presenteeism and the Cost to Employers

As we’ve discussed in previous blog posts, case managers can have a very strong and positive impact on patients and/or parents of patients when transitioning care from a hospital or rehab setting to home.  Part of this impact comes in the form of education and support that helps reduce repeated visits to the ER or doctor’s office.  This same education and support can help to minimize “presenteeism” on the part of workers with sick children at home or who have chronic illnesses themselves.

Presenteeism, or the issue of workers being present on the job yet not productive, is a growing problem for employers and workers alike today.  More and more research is being done on the cost of presenteeism.  According to Walter Steward, Ph.D., M.P.H., director of the AdvancePCS Center for Work and Health,

“Most employers know there’s a link between health and productivity, but because the link has been difficult to quantify, they have chosen not to act.”

Information from the American Productivity Audit (APA) spearheaded by Dr. Steward, indicated that lost productive time (LPT) due to health-related issues costs US employers $225.8 billion per year.  It’s estimated that over 70% of that time is from lack of productivity while actually “present” on the job.  Six percent of that amount is from work absences related to family health matters, as in having to take time for children who are ill.

As continued research and studies are done in relation to the financial drain that presenteeism can cause, many are coming to the same conclusion…that it can have more of an impact on productivity than absenteeism or short-term disability.  One such conclusion is that presenteeism can be over seven times more costly than absenteeism, taking into consideration subsequent time off for worsening health issues.

Enter here the case manager!  An independent case manager, who can work closely with a family from the health care facility to the home, helps them gain the knowledge necessary for making improved healthy choices in their daily lives.  The case manager can educate parents of a sick child on what things to watch for and how to be an advocate for the child, as well as how to be proactive, rather than reactive.  Understanding the illness and feeling more in control can free up a parent’s mind when he and/or she has to get back to work, helping them to be more productive on the job.  Working with an adult patient (or a young patient who is returning to school) to understand his or her disease or illness in such a way as to stay on top of it as much as possible, enables them to take more preventive steps to stay well and avoid complications down the road or future admissions to the hospital.  Feeling confident about their health goes a long way toward preventing presenteeism AND absenteeism!

As stated by researcher Ron Goetzel, PhD, of the Cornell University Institute for Health and Productivity Studies,

“If a company’s health plan is poor, for example, disorders may not be well managed. Workers will continue to work and not be as productive.  Employers need to weigh the costs of good medical care against the potential for on-the-job productivity losses, which we see are substantial in many areas.”

In the long run, investing in case management services for employees as part of a healthcare insurance plan, can mean bottom-line savings when assessing the cost of presenteeism in any business.