Soft Dollar Costs
Some of the highest costs are also those most overlooked; presenteeism and absenteeism are a significant but preventable cost for most companies.
What is presenteeism?
Presenteeism is the measure of lost productivity cost due to employees actually showing up for work, but not being fully engaged and productive because of health and wellness issues.
Intuitively, it makes perfect sense. When someone doesn't feel well -- physically or emotionally -- they simply are not as productive, and the quality of their work is lessened. The numbers tell the story:
» Presenteeism accounts for 61% of lost productivity at work.
» $2000 is the cost burden of presenteeism per employee/yr.
» 68% of employees take frequent "stress breaks" at work.
» 30% of employees come to work at least 5 days per year when they're too distracted to be effective.
Statistics contributed by the Employers Health Coalition, Journal of Occupational and Environmental Medicine, Cigna Behavioral Health and CompPsych.
When employees do not work, it costs company money - sometimes lots of money. Employees are usually absent due to poor health, lack of energy, or no solution to a stressful work environment.
According to a 2005 study by CCH, absenteeism plagues all companies, but some more than others:
» Absenteeism costs $660 per employee per year in direct payroll costs.Better morale from Wellness
» 2-of-3 employees who do not come to work are not sick
» Companies with good employee morale experience just 1.5% absenteeism
» Companies with poor employee morale experience 3.2% absenteeism
Its common sense: an energized, happy, workforce is a more productive and more loyal workforce. Therefore, a company wellness program should be an integral part of building a culture of vitality, energy, retention, team building, and elevated morale.