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Decreasing Absenteeism, Presenteeism, and Improving Employee Health through a Workplace Wellness Program
Submitted to John Smith
Department Head, Department 4
By
Student
Work Center Supervisor, Department 4
March 30, 20__
March 30, 2019
Mr. John Smith
Department Head, Department #4
Business Company Inc.
1000 Business St.
Augusta, GA 30905
Dear Mr. Smith:
Enclosed is my report, “Decreasing Absenteeism, Presenteeism, and Improving Employee Health through a Workplace Wellness Program,” that you requested based on my memo at last quarter’s leadership innovation forum.
My report shows the need for a workplace wellness program to meet operational requirements. Multiple surveys were conducted to gather data about current deficiencies and provide direction on how we can best implement a plan that is effective for our employees.
Thank you for your time. I look forward to any questions or suggestions you might have regarding implementation if you wish us to move forward with the proposed program.
Sincerely,
Student
Work Center Supervisor, Department #4
Table of Contents
Table of Figures …………………………………………………………………………………4
Executive Summary ……………………………………………………………………….…….5
Purpose and method of this report.………………………………………………………5
Findings and Conclusions.……………………………………………………………….5
Recommendations ……………………………………………………………………….5
Introduction ……………………………………………………………………………………...6
Background …………………………………………...…………………………………6
Purpose ……………………………………………….….………………………………6
Overview of Methodology ………………………………………………………………6
Methods ………………………………………………………………………………….………7
Primary Research ……………………………………………………………….……….7
Secondary Research ……………………………………………….….…………………7
Results ………………………………………………………………………………...…………8
Absenteeism and Presenteeism ………………………………………………………….8
Stress in the Workplace …………………………………………………………….……9
Exercise to Increase Productivity ……………………………………………….………10
Recommendations ………………………………………………………………………………11
References ………………………………………………………………………………………12
Appendix A: Survey ………………………………………….…………………………………15
Table of Figures
Figure One: Most recent absence reason…………………………………………………………8
Figure Two: Number of absences due to illness or medical appointment…………..……………8
Figure Three: Number of absences due to illness or medical appointment………………………9
Executive Summary
Purpose and method of this report
Last month, our Department Head mentioned during a weekly meeting that he felt like there have been a lot of employees calling in sick or leaving early for doctor’s appointments. At the behest of mid-level management, a study was conducted to determine the truth of this matter and any related trending productivity deficiencies. Research was conducted to determine solutions for these problems. A survey was created and conducted to determine the following:
Rates of absenteeism
Rates of presenteeism
Forms and causes of decreased productivity.
Resources employees are interested in to improve health
Findings and Conclusions
The survey indicates that employees averaged 3 sick days out of work per month. Additionally, 70% admitted to being present at work while sick. 50% also indicated other health concerns, including a general feeling of stress, that may impact workplace productivity.
Research of academic journals and peer reviewed studies show that a workplace wellness program along with a shift led by management toward a culture of fitness is the most cost-effective answer. By helping our employees take care of themselves, they will be more productive and take better care of the company.
Recommendations
We recommend the following actions be taken to improve our workforce productivity:
Work Center Supervisors lead morning group meditation or quiet time to prepare everyone for the work day.
Our company provide gym memberships to a local fitness center as an employee benefit to encourage physical fitness outside of work.
Leadership invite a local healthy food truck once a week for a low calorie and low stress lunch option.
Department Workplace Wellness Program Lead coordinate a monthly training on topics such as meal planning and smoking cessation to encourage a healthy lifestyle.
Introduction
Background
A great deal of productivity is lost to employees calling in sick or showing up to work sick. Of the over 100 employees we have in the department, there are at least 5 out at medical or dental appointments every week. Even more productivity is lost to out-of-shape employees who either struggle or are unable to do their jobs anymore due to joint or back pain but can’t be let go because of their contracts. Many employees quit when their contracts expire because of inability to deal with stress at work. Loss of qualified, competent employees costs the company to hire and train to refill their spots.
Purpose
This study was conducted to determine the causes of employee absenteeism, presenteeism, decreased productivity, and increased stress. Analysis of the survey results and research of academic studies on improving workplace productivity resulted in recommendations to implement a workplace wellness program that will increase productivity.
Overview of Methodology
To establish the problem and form a recommendation, the we did the following:
Surveyed employees to determine rates of absenteeism and presenteeism and to identify common stressors.
Analyzed primary research data to establish the validity of perceived problems.
Conducted secondary research to find scientifically proven methods to improve identified conditions.
Methods
Primary Research
Primary research was conducted in Department 4. 25 employees from multiple work centers took an anonymous survey to determine rates of absenteeism and presenteeism and to identify common stressors. The results of the survey were used to verify the management’s perceptions of decreased productivity due to these causes and shape the direction of secondary research.
Secondary Research
Secondary research was conducted to determine what experts say are the best methods to improve the identified problems. Multiple academic journals were consulted, and studies were analyzed to find solutions that have the best cost-benefit ratio.
Results
Absenteeism and Presenteeism.
52% of our employees responded to the survey that their most recent absence was illness related. This result was roughly in line with a 2014 study by Morneau Shepell (Allen & Bourgeois, 2015).
Figure One: Most recent absence reason
All employees reported being absent at least once within the last quarter due to a medical appointment or illness, with over 25% being absent four or more times.
Figure Two: Number of absences due to illness or medical appointment
Almost 70% reported showing up to work at least once while feeling ill.
Figure Three: Number employees admitting to showing up at work while sick
A recent Japanese study of employees for four pharmaceutical companies found that absenteeism and medical expenses cost on average $1685 per person per year (Nagata et al., 2018). Even more startling was the cost of presenteeism, lost productivity while sick at work, was over $3000 per person (Nagata et al., 2018). These figures are comparable those found in the American Productivity Audit, which estimated that lost productivity time from personal and family health reasons averaged about $1600 per employee per year (Stewart, Ricci, Chee, & Morganstein, 2003).
A year-long study conducted on 266 employees of a UK corporation saw a 45% reduction in health risk factors and 36% reduction in monthly absenteeism days as the result of a workplace health promotion program (Mills et al., 2007). The study further showed that the program yielded a return on investment of roughly six dollars for every dollar spent on the health promotion program.
Similar results were found by a group of Harvard economists in 2010 (Baicker, Cutler, & Song). They conducted analysis on thirty-six studies about employee wellness program and absenteeism. Employers saved an average of about three dollars in health care costs and three dollars in absenteeism costs for every dollar they spend on wellness programs (Baicker et al., 2010). Over half of the programs studied focused on weight loss and fitness and other risk factors, while a third had added incentives for participation.
Stress in the Workplace
Overall stress turned out to be less severe than anecdotal observations suggested. 25% responded as feeling “very stressed” throughout the average work day, though only two of those employees said they were unable to deal with stress effectively.
Exercise and workplace wellness programs have been shown to reduce stress. A recent poll by Korn Ferry Institute showed that nearly 66% of people are more stressed about work than they were in previous years (Korn Ferry Institute, 2018). Managers are encouraged to promote stress reducing activities, including exercise, to reduce associated healthcare costs (Ray, 2011).
Research indicates that exercise can inoculate against uncontrolled stress (Greenwood, & Fleshner, 2011). Many jobs have stressors that are out of the employees’ power to control. Late shipments, lunch-hour rush, or the next shift calling in sick at the last second are all common stressors that employees have no power to stop.
Dr. Erica Jackson (2013) even argues for exercise as part of a stress management treatment for individuals who have severe reactions to stressors. The physiological changes that happen as a result of putting it under controlled stress during aerobic exercise can temper the patient’s brain to better deal with the hormonal onslaught caused by triggering events. Even if a person can’t devote an hour at a time to exercise, a few minutes before work and throughout the day can help center a person (Jackson, 2013).
Exercise to Increase Productivity
A common theme running through evidence in ways to improve health and reduce stress was exercise. Further research indicates that there are additional productivity benefits to exercise. A 2008 study published in the International Journal of Workplace Health Management (Coulson, McKenna, & Field, 2008) where a self-reporting group of 201 people, average age 38, consistently reported increased productivity on days they exercised as opposed to days they did not. Hogan, Mata, and Carstensen (2013) also found that exercise had observable benefits on response time and cognitive processing. Another study showed a 79% increase in work performance once a “workplace health promotion program” was implemented. (Mills, Kessler, Cooper, & Sullivan, 2007). These and many other studies consistently show a positive correlation between wellness programs and increased productivity.
Recommendations
Based on our research, the department should implement a workplace wellness program. This will provide an excellent return on investment by reducing absenteeism, presenteeism, and reducing stress.
Work center supervisors should lead morning group meditation or quiet time to mentally prepare everyone for the work day. Because our work center supervisors are not fitness experts, it wouldn’t be safe for them to lead their work centers in morning calisthenics. We can give them the time and space to encourage employees to relax before the work day truly starts, which will decrease stress throughout the day.
We would like to see our company provide gym memberships to a local fitness center as an employee benefit to encourage physical fitness outside of work. Gym memberships to chain fitness centers, such as Gold’s Gym or Planet Fitness, cost about $10 per employee per month with corporate memberships often costing less. This is a tiny cost when weighed against the morale and health benefits. These centers generally offer classes, childcare, and other activities that will improve the overall happiness and wellbeing of our employees.
We encourage leadership to invite a local healthy food truck once a week for a low calorie and low stress lunch option. Smokehouse BBQ, Fat Man’s Café, and The Brown Bag are regular options during lunch time that provide convenient options when employees are too busy in the morning wrangling kids to pack their own lunches. None of these food trucks provide healthy, low calorie options though. Inviting food trucks from The Skinny Taco or Diablo’s Southwestern Grill would provide a few low calorie and vegetarian options.
Finally, the Department Workplace Wellness Program Lead should coordinate a monthly training on topics such as meal planning and smoking cessation to encourage a healthy lifestyle. Over half of our survey respondents indicated interest in a smoking cessation program. While we might not be able to provide such a program directly, the company can help employees find resources to help themselves makes changes.
These initial recommendations are in response to survey results. As our company moves toward a culture of fitness and employee’s needs change, the company should re-evaluate if existing initiatives are still necessary and if new ones should be brought online.
References
ADP Research Institute (2012). Why you should care about wellness programs. ADP Research Institute. Retrieved from: https://www.adp.com/tools-and-resources/adp-research-institute/research-and-trends/~/media/RI/whitepapers/Why-You-Should-Care-About-Wellness-Programs.ashx.
Allen, P., & Bourgeois, L. (2015, June 8). A true picture of workplace absenteeism. A Morneau Sheppel research report. Retrieved from: http://www.morneaushepell.com/sites/default/files/documents/3679-true-picture-workplace-absenteeism/9933/absencemanagementreport06-08-15.pdf.
Baicker, K., Cutler, D., & Song, Z. (2010, February 1). Workplace wellness programs can generate savings. Health Affairs, 29(2). doi: 10.1377/hlthaff.2009.0626.
Coulson, J.C., McKenna, J., & Field, M. (2008, September). Exercising at work and self-reported work performance. International Journal of Workplace Health Management, 1(3), pp. 176-197. doi: 10.1108/17538350810926534.
Friedman, R. (2014). Regular exercise is part of your job. Harvard Business Review. Retrieved from: https://hbr.org/2014/10/regular-exercise-is-part-of-your-job
Greenwood, B. N., & Fleshner, M. (2011, July). Exercise, stress resistance, and central serotonergic systems. Exercise and Sports Sciences Reviews, 39(3), pp. 140-149. doi: 10.1097/JES.0b013e31821f7e45
Hogan, C. L., Mata, J., & Carstensen, L. L. (2013, June). Exercise holds immediate benefits for affect and cognition in younger and older adults. Psychology and Aging, 28(2), pp. 587-594. doi: 10.1037/a0032634.
Jackson, E. (2013, May/June). Stress Relief: The role of exercise in stress management. American College of Sports Medicine. doi: 10.1249/FIT.0b013e31828cb1c9
Korn Ferry Institute (2018, November 14). Workplace stress continues to mount. Reports & Insights. Retrieved from: https://www.kornferry.com/institute/workplace-stress-motivation.
Mattke, S., Kapinos, K.A. Caloyeras, J. P., Taylor, E. A., Batorsky, B. S., Harry H. Liu, H. H., et al. (2014). Newberry, workplace wellness programs: services offered, participation, and incentives. RAND Corporation. Retreived from: https://www.rand.org/pubs/research_reports/RR724.html.
Mills, P.R., Kessler, R. C., Cooper, J., & Sullivan, S. (2007, September). Impact of a health promotion program on employee health risks and work productivity. American Journal of Health Promotion, 22(1), pp. 45-53. Retrieved from https://pdfs.semanticscholar.org/672b/12e1fb6138f955e8153e7fffbf20aa73c559.pdf.
Nagata, T., Mori, K., Ohtani, M., Nagata, M., Kajiki, S., Fujino, Y., et al. (2018, May). Total health-related costs due to absenteeism, presenteeism, and medical and pharmaceutical expenses in Japanese employers. Journal of Occupational and Environmental Medicine. doi:10.1097/JOM.0000000000001291.
Ray, A. (2011, December 20). To promote wellness, help employees reduce workplace stress. Society for Human Resource Management. Retrieved from: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/reducestress.aspx.
Sharifzadeh, M. (2013). Does fitness and exercises increase productivity? assessing health, fitness and productivity relationship. American Journal of Management, 13(1), pp. 32-52. Retrieved from: http://www.na-businesspress.com/AJM/SharifzadehM_Web13_1_.pdf
Steinbrecher, S. (2018, May 29). 7 easy practices to reduce work stress. Inc. Retrieved from: https://www.inc.com/susan-steinbrecher/7-easy-practices-to-reduce-work-stress.html
Stewart, W. F., Ricci, J. A., Chee, E., & Morganstein, D. (2003, December). Lost productive work time costs from health conditions in the United States: Results from the American productivity audit. Journal of Occupational and Environmental Medicine, 45(12), pp 1234-1246. doi: 10.1097/01.jom.0000099999.27348.78.
Appendix A: Survey
1. How would you characterize your most recent absence?
Illness related (e.g. Cold, flu, etc.)
Non-illness related (e.g. Personal day)
2. In the past quarter, how often were you absent from work for a medical appointment or due to illness?
Never
Once
Twice
Three times
Four times or more
3. In the past quarter, how often did you come to work while feeling ill?
Never
Once
Twice
Three times
Four times or more
4. Throughout your average work day, how do you generally feel?
Very stressed
A little stressed
Not very stressed
Not stressed at all
5. Throughout your work day, how do you feel you are able to manage your stress?
Very effectively
Somewhat effectively
Not effectively
6. How do you generally feel coming to work in the morning?
Apprehensive or anxious
Apathetic or indifferent
Confident or hopeful
7. Would you be interested in participating in classes on any of the following as part of a workplace wellness program?
Smoking Cessation
Meal Prep
Low Intensity Exercise (e.g. Yoga, Tai Chi, etc.)
Other _____________________
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