July 6, 2012

Sick at work

The cost of presenteeism to your business and the economy.

A specialist methodology was used to calculate the cost to the Australian economy of productivity losses due to presenteeism in the workplace2. The presenteeism costs identified in the study are made up of:

  • the direct costs faced by employers due to the on-the-job productivity losses caused  by presenteeism;
  • the indirect costs to the Australian economy due to lower labour productivity levels caused by presenteeism; and
  • the indirect costs to the Australian economy arising from changes in terms of capital intensity and other second round effects.

The study estimated resulting productivity loss from 12 common medical conditions and concluded that the overall cost of presenteeism to the Australian economy in 2009/10 was $34.1 billion. This equates to a decrease in gross domestic product (GDP) of 2.7% compared to the ‘no presenteeism’ scenario.

This report dives deeper into the causes and results of presenteeism, and outlines measures to combat it.

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