In ongoing business operations, maintaining appropriate levels of production is a managerial challenge. The loss of productivity due to illness is a constant concern for employers and employees alike. Workers suffer not only the consequences of the illness, but often, lost wages and loss of leisure and family time. Employers must deal with reduction in production output and finding the balance in proper personnel management.
Cost to Employers
Various studies have been conducted to measure productivity loss in the workplace due to worker illness, and the results show that not only does the business suffer when an employee is absent from job site, but productivity loss can also occur when an employee is suffering from illness and attempting to work. The costs of hiring and training replacements can be a significant expense to employers that is often difficult to measure across the broad areas of industry. Furthermore, employees without available sick days are less likely to take time off from work, thus remaining at job at a reduced level of performance.
Economic Impact
Last week, the World Health Organization – Brazzaville: Regional Office for Africa released a report titled “A Heavy Burden: the Indirect Cost of Illness in Africa, 2019”. The report attempts to address the gaps between ill-health and expected outcomes. According to this report,
- 37% of productivity losses in Africa are due to NCDs;
- 27% are due to infectious diseases;
- Remaining 36% are due to neglected Tropical Diseases, road traffic injuries and maternal conditions;
- NCDs are the largest cause of productivity losses and accounted for about 47% of the productivity costs accrued in East African community whereas HIV/AIDS accounted for 13%.;
- The total DALYs (Number of years lost due to disability, ill-health of early death) accrued in the East African Community in 2015 led to a productivity cost of International $ 204 Billion, which is equivalent to 49% of the Region’s 2015 GDP
Five countries Congo, Ethiopia, Nigeria, South Africa and Tanzania, accounted for almost 50% of the total DALYs (Number of Years lost due to disability, ill-health or early death) in Africa. Furthermore, the economically productive age group – 15-59 years bore the brunt of ill health and mortality – about 39%.
Link between Health and Productivity at Workplaces
According to Rand Corporation report titled “Health, wellbeing and productivity in the Workplace”, the following factors are negatively associated with productivity:
- Lack of sleep, financial concerns and providing care for family;
- Mental health problems
- Musculoskeletal and chronic health conditions
Their findings suggest that companies which pay attention to health and well-being at a board level report lower rates of absenteeism and presenteeism. There is an increasing acceptance that work productivity and performance are strongly linked with employee health and well-being. There is a strong business case for investing in staff health and wellbeing. The simple logic is that investment in health and wellbeing can save a company more in terms of lost productivity.
Productivity losses by disease or condition – 2015
Source: A heavy burden: The productivity cost of illness in Africa: Brazzaville: WHO Regional Office for Africa; 2019.
Number of Years lost due to disability, ill-health or early death – accrued by Age Group
Source: A heavy burden: The productivity cost of illness in Africa: Brazzaville: WHO Regional Office for Africa; 2019.