Growing problem: ‘I’m here (but I’m not working)’
August 27, 2008 by Bill MeltzerPosted in: Absenteeism, Company culture, Compensation, Special Report
Which costs your organization more: employees who miss work or ones who show up physically but take a mental PTO day?
For most employers, it’s the latter. So why do even savvy senior managers and finance directors (we’re not just talking about the bean-counters) worry about absenteeism while downplaying so-called presenteeism as a drain on company productivity, not to mention the compensation and benefits budget?
In some cases, C-levels and supervisors seem to think that admitting that presenteeism even exists at the firm is akin to saying, “We’re a poorly run organization.” In reality, presenteeism exists in every workplace.
Virtually every employee, manager, supervisor and executive who has ever tried to “tough it out” at work when he or she has been sick has been a presentee on those days. So has anyone who’s ever been distracted at work by non-work issues – whether it’s spending the day trying to resolve a personal financial matter, checking on a sick child at home or constantly checking for scoring updates from a sporting event.
In short, unless we’re to believe that every employee is productive every single day, no employer in the world is immune from presenteeism.
Some organizations that don’t bury their heads in the sand about presenteeism still don’t track it. Why? Usually, there’s a belief that chronic presentees eventually get rooted out of the company. And short of watching over every other employee’s shoulder throughout the workday, it’s too difficult (and even counterproductive) to try to estimate the cost to the organization.
Here are some strategies that firms have used to not only measure the cost but also reduce the problem.
Creating a cost estimate
If your organization is like most, upper management worries endlessly about health benefit costs without realizing undetected presenteeism is just as costly, but easier to control.
Consider these facts from a recent CSG study: Nearly 10% of the average yearly pay and benefits
budget is spent on non-productive (but treatable) employees.
Add in employees who call out at the last second and the percentage rises to 17%, according to SHRM.
But how do you estimate the actual dollars-and-cents cost to your firm?
Let’s assume you have 50 employees, who make an average $40,000 a year. Over the course of the year, the average employee is non-productive 2.5 % of the time, due to assorted personal issues or minor illnesses that serve as distractions.
In this instance, presenteeism costs your organization $50,000 a year. If you have a 5% presenteeism rate, the figure shoots up to $100,000.
While it’s impossible to entirely stamp out presenteeism, even small reductions in presenteeism add up to big bucks in controlling compensation and benefit costs.
The next step, of course, is doing something about the issue. Broadly speaking, the process usually works in three phases:
- review current policies and procedures for things that accidentally increase presenteeism
- get supervisors and employees involved on the front end, and
- stress the importance of work-life programs to senior management and supervisors.
Let’s look at each area to see how they work in real-life practice.
Unintentional effects
Three common ways many firms try to cut absenteeism often increase presenteeism:
- Over-stressing attendance in employee’s annual reviews
- Having supervisors check up on employees who take sick days to verify they are really ill, and/or
- Disciplining employees for last-moment sick callouts.
From a practical and cost standpoint, the best solution may be to switch from separate vacation and sick-day benefits to a single paid time off (PTO) bank. When folks have no-questions-asked control over their off days, they’re sometimes more likely to use a PTO day if they’re sick. Of course, you know that PTO carries some risks of its own.
Early detection
Fewer than one organization in 10 gets both managers and employees involved in the process of spotting and eliminating presenteeism.
That’s too bad, says consultant Mary Beth Chalk, because it can been done pretty easily.
Ask a sampling of employees to rate how energetic and productive they typically feel at work, on a percentage scale. Have supervisors estimate their staff as well. Then split the difference.
The result is a pretty good barometer of your organization’s current and future presenteeism risk.
Work-life balance
Anything you can do to promote work-life programs at your firm can have a positive effect on the bottom line. Proven ideas include:
- rewarding supervisors who support flexible work arrangements
- sending sick employees home
- cover on-site flu shots, and
- actively promote your existing Employee Assistance Program.
Is presenteeism an issue at your company? How have you addressed it? Let us know.
Tags: Absenteeism, presenteeism
August 28th, 2008 at 1:50 pm
A problem I see in our company is “face time”. You are expected to be here a min of 10 hours, even if there is not much to do. Employees are not productive, they drag on projects just to make the day more efficient for them. These are exempt employees and are here because they can not leave without being frowned upon by management.
August 28th, 2008 at 2:03 pm
I agree with Angel. The powers that be just want to see people in there chairs. If they’re here, surely they’re working! Also our company offers only three sick days per year to exempt and employees and none to non-exempt employees so most have no choice but to come to work.
And in the case of many here, myself included, if they’re going to pretend to pay me then I can pretend to work!
August 28th, 2008 at 2:21 pm
I worked for a company that had the “face time” problem as well. I remember my first day, and it was getting to be about 5PM but nobody was making preparations to leave for the day despite getting in during the wee hours of the morning. You constantly had a cloud of guilt hanging over you if you wanted to go home for the day at a normal hour. Granted there are days when you are going to have to put in extra time to get something done, but if it’s expected day in and day out, people are going to do exactly what Angel said – drag on the projects and other work to make sure they have something to keep them busy. I know I would do things like bring my bills to work or other personal paperwork just so I had something to keep busy with when I was finished with my regular duties.
I now work for a company that I feel truly does value a work life balance. Managers and Supervisors leave at normal times and encourage others to do the same. When you know you work for someone who recognizes that you are a human being outside of the office as well, you are going to want to work harder and put your best foot forward. You feel valued, and that makes a huge difference.
August 28th, 2008 at 2:41 pm
At my present company, we have a very liberal sick/personal/vacation day policy( 12 sick, 4 personal, 15 vacation days paid a year to start) and sick days roll over indefinitely as well as very flexible work schedules. This contributes to actually working in our favor – we don’t have rampart absenteeism but people have the time so they don’t feel pressured to come to work if they don’t feel well. We also encourage people to use their personal days as they are lost at the end of the year.
At my previous company, it depended on where you worked as to how calling out sick was viewed. Management in general was “afraid” to take much in the way of time off – especially long vacations, while for the rank and file it depended on the individual manager. My manager was an angel – very flexible and he himself took much needed vacations as well.
I always remember how one young manager was so looked down upon because “he” took two weeks FLMA so he could be home and bond with his newborn. It was unheard of for the man to do this. In my years there he was the only one who was brave enough to do it.
My very first manager told me that if you expect the worst from people that would be what you would get, BUT if you expected the best you would be well rewarded.
August 28th, 2008 at 2:55 pm
What kind of work do these people perform? I can’t imagine that a body of management would actually feel that a requisite ten-hour day, regardless of workload, could be productive.
August 28th, 2008 at 3:43 pm
Judy-
What company do you work for? Its sounds great to be an employee there!!!
August 28th, 2008 at 3:44 pm
What company do you work for? Its sounds great to be an employee there!!!
August 28th, 2008 at 3:49 pm
The leaders with distorted views of “face time” often have a martyr complex. They work long hours and expect the same of their reports, who may be making a fraction of their pay.
August 28th, 2008 at 4:13 pm
Victoria,
I’m with a small non-profit who serves children in crisis. The time-off benefits are generous in part because of the high burnout that can happen when working with children and families in crisis. That is also why work schedules are flexible – to accommodate meeting with families (be it before work or after work as well as during normal business hours). The downside is there is a great deal of documentation that is requried of our employees. Being in HR, I don’t deal with the clients directly so I work normal business hours but I do benefit from the time off benefits.
August 28th, 2008 at 4:48 pm
I recently worked for a company that did not pay someone until they had been absent for three days, therefore many people did not utilize their sick time. They also had a policy which you had to be employed six months plus two weeks before you could use PTO or sick time. I, being the a new HR Director, was one of those presentees who was sick and came to work. I ended up in the hospital with pneumonia and out of work for 10 days and guess what, I was two days short of my six months, so I did not get paid . If I could have utilized sick time, I would have taken three days off at the end of the week, had the time plus the weekend to recover and most likely would not have gotten pneumonia and lost time and pay, not to mention medical bills. So, if employers were more flexible with the sick time and understanding when employees are truly ill, it would be overall more cost effective and efficient. You get out of employees the same as you put into them. Support, loyalty, and understanding given to employees by upper management and supervisor, in return you will get the same kind of employees.
PS, I am no longer working for that company!
August 28th, 2008 at 4:55 pm
I worked at a very large networking company that had PTO. There were two major problems with PTO, the first was face time mentioned above. The second was that everyone wanted their PTO time to only count as vacation. A lot of people would come to work sick and infect others, who would also come in to work sick, infecting others, etc… Luckily, we were so busy acquiring other companies that we could absorb the downtime of sick and face time workers.
August 28th, 2008 at 5:39 pm
One problem we seem to be having is talking on cell phones. Whether it be in the office or on our heavy machinery, which is not safe either. Even trying to work and be on the phone at the same time is unproductive. Then there are only mistakes to go back and fix. Our percentage here is probably alot more than the average.
August 28th, 2008 at 5:55 pm
We have a chronic problem with chatterbox presenteeism. There are one or two high level employees who spend a great deal of time chatting. One of them will stop in at different folks offices just to chat. She is very opinionated and likes to talk.This is excused as “team work”. But it is realy gossip time. Often it leads to negative talk about management.
August 28th, 2008 at 5:58 pm
I completely disagree with the following statement:
“From a practical and cost standpoint, the best solution may be to switch from separate vacation and sick-day benefits to a single paid time off (PTO) bank. When folks have no-questions-asked control over their off days, they’re sometimes more likely to use a PTO day if they’re sick. Of course, you know that PTO carries some risks of its own.”
- A PTO bank does NOT create an environment of “no questions asked.” Whether a PTO Bank or a Sick Bank is in place, calling out sick creates the same results – among managers, fellow staff, etc. Managers mentally keep tabs of how many sick days are taken, and fellow staff have to pitch in to do the work of the absent employee.
- Our company just implemented a separate vacation and sick-day plan and we have had LESS absenteeism as a result. Employees who are truly sick use their sick days to take care of themselves versus coming in to work sick (simply because they don’t want to waste a PTO day). And that enables the employee to get better quicker and not sicken fellow coworkers.
August 29th, 2008 at 12:12 pm
I worked for a company that actually used “average hours worked per week” as a criteria on our year end performance review. You received extra points and a higher overall score if you worked more hours. All salaried employees had to clock in and out every day and a computer system tracked our hours worked. It was ridiculous and counterproductive! Some people worked 10 hours a day but spent most of their time socializing or goofing off. I am a very productive person who can get everything done in 8-9 hours a day because I don’t goof around much, so my overall score was lower. What a bunch of nonsense! I’m so glad I no longer work there.
August 29th, 2008 at 1:17 pm
Angel, Juliana, and Nancy….
I agree with you all and Nancy you nailed it, “The leaders with distorted views of “face time” often have a martyr complex. They work long hours and expect the same of their reports, who may be making a fraction of their pay.”
Just last week, my Manager has changed me from exempt to non exempt supposedly because I did not work 40 hours a week. My manager is single, has no kids, no husband and is a workaholic, she works long hours and I guess she expects me to do the same. I am efficient, organized, and can get my work done in an 8 hour day upset when I have deadlines and special projects. I have a family and four kids, very demanding family life style.
I guess I will also pretend to work; however, my family will suffer and the pay is not the same as my manager. As a matter of fact, she has now even decreased my pay I guess as a punishment.
August 29th, 2008 at 2:07 pm
I work for a very progressive small manufacturing firm. As the company has grown they have added benefits for team members like health insurance, a simple IRA and PTO. PTO is aquired by hours on the clock and can be used in any manner. Team members are encouraged to stay home when sick. There is a certain amount of flex time within scheduling needs and the member assistance and referral program is growing all the time. The management has brought in people to teach classes on budgeting, home ownership, and investing. Team members are often sent at company expense to classes that help members develop management skills, improve communication, and working with varied age or ethnic groups. Other relevant classes have been re-embursed. They are aware of presenteeism and have promoted solutions to it. For example I cannot stay awake at around 3 pm every day. I will literally fall asleep in my chair. I now close my office for 20 min a day and I nap. I come back on when I wake and it is up to me to make sure I work the time missed. I could take PTO instead if I choose. I am more productive and my loyalty to the company is well you know, unshakeable. Now not everyone can do that because of the job they have. Yet they are willing to work with everyone within reason. Those who only take a privelage and not give back are soon weeded out. Amazingly the company growth has been phenominal and the team members (we are all team members) are instrumental in this. Happy company’s make excellant products and draw in customers. Thanks
September 8th, 2008 at 4:11 pm
I also have worked many places where either subtle pressure or not-so-subtle pressure was put on employees to work when sick and to work a minimum of 10 hours per day every day week after week. I have seen some really amazing people totally burn out because of the lack of work-life balance and it troubles me. The one thing I have learned is that you can take a very gifted, intelligent, exceptional person and pile so much work on them over an extended period of time that they become ineffective and completely burn out. Doesn’t matter how good they were to begin with. If everything is out of balance, at some point, something is going to give and the person eventually fails.
I liken this to maintaining a piece of equipment. If we continually run a piece of machinery without properly maintaining it and performing the needed preventative maintenance, the machinery will fail. People are the same way. We all need the down time, the preventative maintenance (vacations, weekends, evenings doing something besides working, reasonable hours) to stay healthy and productive. If we don’t get it, we may perform for a time, but the day will come when we begin to fail and “crash and burn” isn’t far in the future. If we can see the logic and business sense behind properly maintaining equipment, why can’t we see it in relation to people? We negatively impact the company’s bottom line when we burn people out just like we do when we don’t take care of company property. In fact, I wouldn’t be surprised if the cost of burn-out isn’t the greater expense.
Meanwhile, I work 10 hour days and grow weary…