Reducing Health-Related Productivity Costs

Understanding Health-Related Productivity Costs

While providing health coverage and benefits is a significant business expense, the loss in productivity due to employees' physical and mental health issues can be even more costly. Productivity losses are commonly categorized into two types: presenteeism and absenteeism. Absenteeism is straightforward, as it refers to employees being physically absent from work. Presenteeism, however, occurs when employees are present physically at work but perform suboptimally due to their health conditions.

Interestingly, companies often spend two to three times more on medical-related productivity costs due to presenteeism compared to their pharmacy and health care expenses.

Effects of Presenteeism

Presenteeism can severely affect a work environment, leading to issues such as:

• Excessive time spent on tasks
• Reduced work quality
• Lack of initiative
• Poor health leading to a spread of illness
• Lower performance levels
• Reduced work output
• Decreased social interaction with peers
• Loss of motivation

Common Causes of Productivity Loss

The primary health issues leading to productivity losses include:

• Back and neck pain
• Headaches
• Colds and flu
• Sinus problems
• Obesity
• Allergies
• Diabetes
• Depression and/or anxiety
• Chronic conditions

Strategies to Minimize Productivity Costs

To mitigate productivity costs related to health issues, consider implementing the following strategies:

• Target wellness programs addressing prevalent health concerns among employees.
• Offer health fairs, screenings, and risk assessments to identify employee health needs.
• Align health benefits with wellness initiatives for enhanced outcomes.
• Design benefits that encourage desirable workplace behaviors.
• Collaborate with innovative healthcare companies providing comprehensive wellness and management resources, such as:
• 24/7 nurse access
• Wellness and risk assessment tools
• Support for lifestyle changes and chronic conditions
• Resources empowering employees to manage their health

Neglecting your employees' health care needs may exacerbate the adverse effects of absenteeism and presenteeism. However, by investing in your team’s well-being, you can curb medical and pharmacy costs while boosting productivity.