1. Introduction Employee’s health is directly influence work behavior and employee performance, so companies attempt to encourage employees to maintain and promote employee health in order to avoid the cost produced from health problem. Although most companies promote employee healthy workplace, many companies still are suffered from employee absenteeism and presenteeism. Presenteeism is more interesting and hot topic in the workplace. Presenteeism is defined as employees attended to work while sick both from physical or mental health conditions, so those employees unable to work at the normal rate or full capacity. In addition, the study showed that presenteeism can cost greater than absenteeism because unproductive workers come to work due to their sickness (Toten, 2014). According to Sunlife Financial, presenteeism generates four times cost more than absenteeism in terms of hours lost (Reyes, 2014). In fact, it is difficult to measure presenteeism unlike absenteeism (The problem with presenteeism, 2013) because it is difficult to measure the cost of unproductive performance due to sickness. In contrast, the cost of absenteeism is more predictable; HR can predict the cost when employees do not show up to work cost for substitute employee and cost of lower company productivity. Sometimes, presenteeism may be considered an act that inspiring admiration from colleagues when employee present at work while sick, however, many people also view presenteeism as negative action in the organization because it leads to productivity loss. In addition, it increases high risk of illness transmission to other employees with can increase health care cost eventually (Toten, 2014). 1.1 The problem statement Presenteeism becomes a critical issue... ... middle of paper ... ...earch, 9(6), 1-14. Retrieved from http://search.proquest.com/docview/873821090?accountid=12917 Reyes, S. (2014, January 13). Presenteeism: the One Thing Worse than Absenteeism. In Tribehr.com. Retrieved May 8, 2014, from http://tribehr.com/blog/presenteeism-the-one-thing-worse-than-absenteeism The problem with presenteeism (2013, December 5). In Personel Today. Retrieved May 8, 2014, from http://www.personneltoday.com/hr/the-problem-with-presenteeism/ Toten, M. (2014, January 28). Sick at work: presenteeism costs more than absenteeism. In workplaceinfo. Retrieved May 6, 2014, from http://www.workplaceinfo.com.au/human-resources-management/work-life-balance/sick-and-at-work-presenteeism-costs-more-than-absenteeism 10 ways to reduce the threat of ‘presenteeism’. (2013, January). HR Specialist: Compensation & Benefits, 8(1), 1-2. Retrieved May 6, 2014, from EBSCOhost.
Employees can be absent from work either due to Long-term sickness, short-term certified or uncertified sickness or unauthorised absence and lateness. Absenteeism will not include annual leave , maternity, compassionate or absence due to training or attending union meetings but where a worker fails to turn up at work as scheduled resulting in disruption of work schedule, added work load, increased payroll costs and poor quality service an d poor staff morale.
At many organizations, the employees who have been there the longest are the organizations best assets because they already know how to do their jo...
Colorado State University-Global Campus. (2013). Module 7 – Labor Relations [Blackboard ecourse]. In MGT 570 – Managing Human Resources (pp. 1-5). Greenwood Village, CO: Author.
Rising insurance costs are one the primary reason employers are investing in corporate wellness programs more than ever before. Companies spent nearly $348 billion on employee healthcare premiums in 1997 according to a study conducted by (Kuttner, 1999). A quick overview of health insurance is necessary to better understand the methodology behind corporate wellness, starting with the fact that all insurance companies exits to make a profit. They review the company’s utilization each year (how much they paid out for all employees at the company) and weigh that against premiums collected (how much they took in from employees.) Then they figure out their additional costs to administer the program and a fair profit. So if there are a lot sick people, rates are going to go up a lot. If there are more healthy people the rates will still go up but only 4-5% (to account for inflation). So the company either needs to pass those costs along to the employee or figure out how to lower those costs, which is where corporate wellness comes in.
A recent study has shown that the US healthcare system deals with nearly 25 million cases of influenza each year. In a typical year, as many as one person in five in the US comes down with the flu, resulting in more than 200,000hospitalizations. The financial costs are huge, not least for employers. For each episode of illness, an employee typically misses between a half day and five days of work. The cost incurred due to reduced productivity and disruption to work flow; together with other indirect costs, is enormous.
Reduces unscheduled absences––this benefit saves employers money. According to Lister, 78% of employees who take sick time, aren’t really sick, but do so due to family issues, stress or other personal problems. Unscheduled absences cost employers an average of $1,800/employee/year; that adds up to $300 billion/year for U.S. companies
What Do We Know About Merit Pay? Issue brief no. 20. N.p., n.d. Web. 15 May 2014.
We, as people in the workforce, are depended on to follow through with work commitments. A healthy employee is able to do more and feel well enough to enjoy it. We strive to do our best but how can we when we have low morale at the office. Healthy employees directly impact the bottom-line of all companies, from the sole proprietorship to the large corporation (1996). Keeping health-care costs low, boosting morale, increasing productivity, and reducing the absent rate is a payoff that every good business owner should recognize. When a small business is trying to become larger, having employees who are healthy and stress free is important. Losing a member of an already small number due to being ill is not the way to succeed. Working in an environment that is happy and productive is the perfect place to work, regardless of what the job is.
The article for “Shirking: the War on Hooky” explained the difficult decision that a managers have to face with they coworkers abuse of absenteeism at work. Also the article evaluate how it causing companies billions of dollars when employees are taking advantage of the sick day policy and it decrease the productivity of the company workforce. The keys questions we have to keep in mind is sick day is generated from absenteeism, also it is part of any new or old employee orientation benefit package when they start working for an employer? The paper will describe different approached manager can used to reduce absenteeism among they coworkers. In how Human Resource should work with the managers to put in place a strong sick policy that represent the company needed and objective.
Knouse, S. B. (2005). The Future of Human Resource Management: 64 Leaders Explore the Critical HR Issues of Today and Tomorrow. 58(4), 1089-1092.
Fitness programs can reduce absenteeism. There are many documented situations of fitness and wellness programs are effective. In a one-year study of over 500 employees, each took part in a work place fitness program. The for each employee that worked out as little one day a week, cut their average number of sick days in half, from over ten sick days on average in the previous year without any activity to less than five in the following year. The report also showed that the employees that did not maintain a workout load of at least once a week did not reduce any sick-days. (Journal of Occupational and Environmental Medicine, 1997; 39:827-831) Each of the participants followed a one-hour supervised workout consisting of a warm-up, stretching, calisthenics, cardiovascular and strength-building program. Later in the study Dr. Lilian Lechner, M.P.H. stated, “While previous studies have found that employees most likely to partake in workplace fitness programs are those who already get the most regular exercise and tend to be in better health, the current show that work-based fitness offers added health benefits for employees regardless of their fitness level.
... workplace stress can lessen productivity. This is the case often seen in employees at many organizations. In addition, aside from costs associated with lost efficiency, there are costs with respect to stress connected absenteeism and organizational medical expenses. In particular, these include the costs of lost company time, augment in work-related accidents, troublemaking production, increases in health care costs and health insurance premiums, and most significantly, decreases in output. References Stress at work, United States National Institute of Occupational Safety and Health, Cincinnati, 1999 Guidance on work-related stress: Spice of life - or kiss of death, European Commission, Directorate-General for Employment and Social Affairs What is workplace stress? 10 March 2001. http://www-ilo-mirror.cornell.edu/public/english/protection/safework/stress/whatis.htm
If staff are absent from work they are not able to carry out the functions for which they have been employed. In many businesses, these functions have to be taken on by someone else - if not, the customer could suffer. Reducing absenteeism is an important feature of human resource management. The extent to which absenteeism affects businesses has been a topical feature. Not only does absenteeism cause problems, but employers are beginning to recognise the effects of 'presenteeism' - staying at work when you are ill or because you believe that in some way your 'presence' will help boost your promotion prospects.
Suffield, L., & Templer A. (2012). Labour Relations, PH Series in Human Resources Management, 3rd Edition
If you are an employee who has been with the company for a number of years, it is easy to fall into a routine and become complacent. While an employee with a number of years behind him may have seniority over others, this does not give them the right to shun responsibility or become less productive.