The impact of unhealthy workers on organizational performance: A study of absenteeism, presenteeism, and healthcare costs

Abstract

In this modern era, employees' physical and mental well-being have become very important for a company’s overall success. This is because poor employee well-being will cost money to the company. Many employees around the world have faced the same problems with their health, such as diabetes, high blood pressure and cholesterol, and obesity. However, absenteeism, presenteeism, and rising healthcare expenditures are major and increasing concerns that firms must manage to retain productivity, financial stability and organizational performance. Thus, the objective of this study is to understand absenteeism, presenteeism and healthcare cost and to investigate their impact on organizational performance. This study is using a qualitative method where the information is gained from journals and articles. The result indicates that absenteeism can cause negative impacts such as overwork among employees, a decline in quality, and operational difficulties, while presenteeism can cause disease transmissions, increase errors in work, and lead to workplace accidents. Both will have an adverse impact on the productivity of individuals, team members, and organizations and also cause an increase in healthcare costs. This study also recommends that companies should provide workplace wellness programs, enhance employee health benefits, and establish a positive work environment to deal with absenteeism and presenteeism.