Have you ever wondered how much absenteeism and presenteeism really cost your company? In other words, how much money is lost due to employee absences or those moments when, even though they are present, workers are not really focused? Probably more than you think.
The reality is that absenteeism and presenteeism are two silent but powerful phenomena that can be affecting productivity, operating costs, and, above all, your teams’ emotional health. Although they are often underestimated or overlooked, their impact can be much greater than you imagine.
In fact, did you know that presenteeism , being physically at work but not performing at 100%, can generate even greater economic losses than justified absences? That’s why ignoring these realities not only jeopardises daily efficiency, but also the long-term sustainability and success of any organisation.
Therefore, understanding what lies behind absenteeism and presenteeism, and how to address them, is key to transforming your company into a healthier, more productive and more resilient place. Download our latest resource here and learn how to reduce absenteeism and presenteeism in your company.
What is absenteeism and why is it a critical problem?
Workplace absenteeism refers to the absence of employees during their working hours, whether for justified reasons, such as illness or leave, or for unjustified reasons.
However, in recent years, mental health-related causes have become increasingly relevant. In fact, studies reveal that 23% of employees who were absent last year did so due to mental health issues, representing a 22% increase compared to the same period in 2023.
In the corporate world, absenteeism goes beyond simple physical absence. This phenomenon causes interruptions in the continuity of work, places a greater burden on other team members and can negatively affect the working environment. Not to mention the economic costs, as in Europe alone, absenteeism due to mental health issues has reached critical levels, with costs exceeding €600 billion annually.
Presenteeism: The silent threat impacting your company
On the other hand, workplace presenteeism occurs when employees are physically present in the work environment but are unable to perform at their best due to physical or mental health problems.
The problem is that it is even more costly than absenteeism for companies because it affects the quality of work, increases errors and reduces the overall productivity of teams. However, presenteeism is a phenomenon that often goes unnoticed and is much more common than people think.
Reseach shows that British workers remain among the least likely to take sick leave compared to their European counterparts. This behaviour is often motivated by fear of reprisals or an organisational culture that values physical presence more than actual results.
The Leadership Lens🔎
As a leader, combating absenteeism and presenteeism requires more than just supervision; it is key to fostering a culture of trust and well-being. Absenteeism is often a symptom of deeper problems such as work-related stress or lack of motivation, while presenteeism can hide a silent burnout that affects productivity.
The key? Active listening and flexible policies: implement hybrid schedules, mental health programmes, and evaluate performance by objectives, not by hours. Leading with empathy and strategic vision will make a difference in healthy and committed teams.
Common causes of absenteeism and presenteeism
Absenteeism and presenteeism are two issues that, although related, have their own characteristics and causes that differentiate them. For example, both share common factors that affect employee well-being and performance, but they also have specific features that are important for companies to identify in order to implement appropriate intervention strategies.
Common causes
Among the causes shared by absenteeism and presenteeism, the following stand out:
- Work-related stress: Constant pressure, work overload and tight deadlines can lead to physical and emotional exhaustion, affecting attendance and performance.
- Lack of motivation: Emotional disconnection from work, lack of recognition or lack of meaning can lead to recurrent absences or poor performance.
- Poor working conditions: Rigid schedules, lack of flexibility, toxic environments, or insufficient support can negatively impact both attendance and productivity.
Specific causes
However, each phenomenon has particular causes that distinguish them:
| Absenteeism | Presenteeism |
|---|---|
| Serious physical problems or illnesses that prevent attendance. | Untreated or underdiagnosed health problems that affect performance without justifying absence. |
| Personal or family emergencies that require temporary absence. | Fear of reprisals, job loss, or being perceived as uncommitted. |
| Lack of effective work-life balance policies. | Organisational culture that values physical presence over actual results. |
| Justified or unjustified absences linked to demotivation or dissatisfaction. | Lack of resources or organisational support, such as access to well-being programmes or therapies. |
Financial impact on businesses
Work absenteeism generates a series of costs that directly affect the profitability and operation of organisations. For example, in the UK alone, it is estimated that the costs associated with psychological absenteeism exceeds £138bns. Among the most obvious direct costs are:
- Hiring temporary staff: To cover absences, many companies must resort to temporary employees or freelancers, which entails additional expenses in salaries and benefits, in addition to the time invested in selection and training.
- Overtime: The redistribution of tasks among present employees often requires overtime, increasing labour costs and, at times, causing fatigue and exhaustion in the team.
- Loss of revenue: The absence of key personnel can delay projects, affect the quality of work and, ultimately, lead to financial losses due to missed business opportunities or dissatisfied customers.
However, the indirect costs of absenteeism can be even more damaging in the long term and less visible, such as:
- Reduced team morale and motivation: When employees have to take on additional workloads due to the absence of their colleagues, they may experience stress, frustration and demotivation, which affects their performance and commitment.
- Increased work stress: Constant overload and uncertainty can trigger mental health problems, increasing the risk of further absences and a deterioration in the working environment.
- Staff turnover: Prolonged or poorly managed absenteeism can lead to dissatisfaction and a loss of confidence in the organisation, increasing turnover and the costs associated with recruiting and training new employees.
- Deterioration of the work environment: Tensions and conflicts arising from overload and perceived injustice can affect team cohesion and organisational culture, decreasing overall productivity.
On the other hand, presenteeism, although less visible because employees are physically present, represents a much higher hidden cost. Studies indicate that the economic losses associated with presenteeism can be up to 1.5 times greater than those caused by absenteeism. This is because:
- Significant reduction in productivity: Employees who work while sick, stressed, or unmotivated do not perform at their best, which affects the quality and quantity of work performed.
- Increase in errors and accidents: Lack of concentration and exhaustion can lead to mistakes that negatively impact the quality of the product or service, as well as workplace safety.
- Long-term health impact: Presenteeism can aggravate physical and mental health problems, which can eventually lead to prolonged absences or even the loss of talent for the company.
Together, absenteeism and presenteeism represent an economic and operational challenge that requires strategic attention to protect the health of employees and the financial viability of the organisation.
Explore the real impact of ifeel through our case studies
To learn more about how ifeel has transformed mental wellbeing in different organisations and sectors, we invite you to download our case studies, which detail real experiences, clinical and financial results, and the customised strategies we have implemented to maximise the impact on teams’ emotional health and productivity.
Discover how leading companies in sectors such as pharma, finance, automotive, retail, hospitality, technology and energy have managed to reduce absenteeism, improve engagement and promote a healthy organisational culture thanks to our comprehensive solution.
Don’t miss the opportunity to be inspired by these examples and take mental wellbeing to another level in your organisation.
ifeel: The comprehensive solution to transform your organisation
Absenteeism and presenteeism not only affect profitability, but also jeopardise commitment and talent retention. With more than half of employees considering resigning due to mental health issues, companies that fail to act will be at a competitive disadvantage.
At ifeel, unlike traditional EAPs, we offer a comprehensive and scalable solution that enables companies to identify mental health risks early on, design personalised action plans and measure results with concrete data. Our clinical and evidence-based approach has been shown to reduce absenteeism by 20-30%, improve employee wellbeing and increase productivity.
In addition, ifeel helps normalise mental health in the workplace through workshops, strategic guides and ongoing support, fostering a healthy and sustainable organisational culture. We encourage you to read our latest blog dedicated to caring for the mental health of frontline workers.
Investing in solutions such as ifeel is a strategic investment that generates economic returns and strengthens organisational resilience.
Download our latest resource here, and learn how to reduce absenteeism and presenteeism in your company.
