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Advice Pool - Presenteeism: The Hidden Costs of Business
(prez.un.TEE.iz.um) n
Presenteeism, a relatively unknown concept, is the complement of Absenteeism. It is defined as the measure of lost productivity cost due to employees actually showing up for work, but not being fully engaged and productive mainly because of
Presenteeism, a relatively unknown concept, is the complement of Absenteeism. It is defined as the measure of lost productivity cost due to employees actually showing up for work, but not being fully engaged and productive mainly because of
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
personal health and life issue distractions. Currently, Presenteeism is estimated to be up to 7 ? times more costly to employers than absenteeism. (1)
Statistically, Presenteeism rears its ugly head and shows itself for what it really is… a costly, somewhat uns
Statistically, Presenteeism rears its ugly head and shows itself for what it really is… a costly, somewhat uns
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
en threat to employers. It is considered a threat because of its stealthy nature. The term itself is new, only recently added to our language. Considering the following alarming statistics, your business may be in danger.
• Presenteeism accounts for 61% of an em
• Presenteeism accounts for 61% of an em
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ployees total lost productivity and medical costs. (4)
• Presenteeism costs employers an estimated $2000/yr/employee. (10)
• Employees working at diminished capacity cost employers $250 Billion/yr. (8)
• 42% of employees anticipate elder care issues over the n
• Presenteeism costs employers an estimated $2000/yr/employee. (10)
• Employees working at diminished capacity cost employers $250 Billion/yr. (8)
• 42% of employees anticipate elder care issues over the n
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
xt five years. (2)
• 37% of employees with current elder care issues have lost work time per week, a total of (11) hours/wk spent. (2)
• On average, employees spent about 8 hours over the previous two-weeks off work, related to giving care. Some of that was pai
• 37% of employees with current elder care issues have lost work time per week, a total of (11) hours/wk spent. (2)
• On average, employees spent about 8 hours over the previous two-weeks off work, related to giving care. Some of that was pai
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
d, such as sick leave or vacation time, and some was unpaid. (5)
• One of the most commonly requested resources from EAP’s are legal services to cover estate planning, family law, divorce, real estate, bankruptcy and other non-workplace issues, accounting for 60
• One of the most commonly requested resources from EAP’s are legal services to cover estate planning, family law, divorce, real estate, bankruptcy and other non-workplace issues, accounting for 60
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
70% of all EAP requests from employees. (2)
• 64% of unscheduled absences are due to family issues 22%, personal needs 18%, an entitlement mentality 13% and stress11%. (9)
• 30% of employees come to work at least 5 days when they are too distracted to be effect
• 64% of unscheduled absences are due to family issues 22%, personal needs 18%, an entitlement mentality 13% and stress11%. (9)
• 30% of employees come to work at least 5 days when they are too distracted to be effect
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ive. 28% of workers took time off for care giving and 25% took at least 1 hour/day to deal with personal issues. (7)
• Costs of absenteeism have risen from $610/employee/year in 2000 to an average of $789 per employee in 2002. (6)
• Of all of the expenses relat
• Costs of absenteeism have risen from $610/employee/year in 2000 to an average of $789 per employee in 2002. (6)
• Of all of the expenses relat
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
d to absence, unscheduled time off has the biggest impact on productivity, profitability and morale. (9)
• 49% of employees lose productivity at a rate of 1 hour or more/day due to stress, 40% lose 1-2 days/yr, 37% lose 3-6 days/yr, and 23% lose more than 6 days
• 49% of employees lose productivity at a rate of 1 hour or more/day due to stress, 40% lose 1-2 days/yr, 37% lose 3-6 days/yr, and 23% lose more than 6 days
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
/yr of productivity due to stress. 44% of employees come to work 1-4 days/yr when too stressed to be effective, 19% of employees come to work more than 6 days/yr when too stressed to be effective. (3)
• 68% of employees take frequent “stress breaks” at work to t
• 68% of employees take frequent “stress breaks” at work to t
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
lk with others. (7)
So, what can be done? Some will argue “Do nothing” and it will work itself out, after all, these issues have been a part of employee/employer relations for years. While that may be somewhat true, the actual associated costs of Presenteeism ar
So, what can be done? Some will argue “Do nothing” and it will work itself out, after all, these issues have been a part of employee/employer relations for years. While that may be somewhat true, the actual associated costs of Presenteeism ar
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
e rising, usually without the conscious knowledge of the employer. Those “hide your head in the sand” approaches to business operation usually spell d-o-o-m. Ignorance concerning any threatening, growing, unrealized operational problem will indeed be costly.
Pot
Pot
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
ntial Solutions: Employers must begin to encourage sick or distraught workers to stay home and get appropriate medical or professional attention before returning to work. Consider funding or partially funding an on-site day-care facility. There are many successfu
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
l models to emulate. Consider expanding or modifying personal leave policies to better aid employees. Expand EAP programs to offer additional employee assistance in a wide range of emotional and family issues. This also has the unseen benefit of enhancing goodwil
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
and demonstrating to employees that their employer cares about their concerns. While these actions may appear to be costly, they are actually an investment in your business.
Awareness is the key, the origin, the beginning of finding solutions. Study your operat
Awareness is the key, the origin, the beginning of finding solutions. Study your operat
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ions in light of the previous statistics. Take actions to prepare for these inevitable situations and build their associated costs into your business model, rather than being caught by surprise at the end of the fiscal year with drastically reduced profit margins
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
without a reasonable explanation. Smart business persons will become aware of the costs of Presenteeism and take action up-front to protect their business.
Bibliography and References:
Bibliography and References:
- 1999 study by The Employers Health Coalition of Tampa, FL <
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
li> Risk and Insurance, March, 2004
Business Legal Resources, April 24, 2003
New Cornell University study, published in April 2004 of the Journal of Occupational and Environmental Medicine. A study of 375,000 employees over a 3-year period
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
i>
Recent BankOne survey of employees
Dee W. Edington PhD, Director, Univ. of Michigan Health Mgmt Research Center
Elevated Stress Levels Lead to Presenteeism, by Richard Chaifetz, CEO of ComPsych, provider of EAP programs
B
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ulletin to Management, 12/5/2002, BNA Professional Information Center
Braun Consulting News, 2003 CCH Unscheduled Absence, Business Insurance July, 2000, and the US Bureau of Labor Statistics
Cigna Behavioral Health, April 26, 2004
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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