Presenteeism In The Workplace: Hidden Costs Of Presenteeism To Employers

Last Updated on 4 September 2025 by Rebecca Young

Presenteeism in the workplace (or sickness presence) as defined by ACAS is someone “increasingly reluctant to take time off for illness” and “attending work when unwell and not fully functioning may also be affecting productivity”.

Employee presenteeism has tripled and more

The number of people who commit employee presenteeism and go to work when they are in poor health or suffering from work related stress has tripled, according to a report by CIPD (Chartered Institute of Personnel and Development) and Simplyhealth. The report surveys over 1000 HR professionals and is the 18th annual report by CIPD/Simplyhealth to look at trends in absence, health and wellbeing in the workplace.

The cost of presenteeism in the workplace (it’s not just about money)

According to the CIPD presenteeism report, presenteeism is still one of the top causes of future long term sickness absence in employees. Only one in ten employers say they are taking action on these issues and perhaps more shockingly only 58% say their organisation is meeting the basic legal requirements for reducing workplace stress.

When an employee comes to work with physical and mental health issues you can see the cost of presenteeism through reduced productivity.

On the other hand absenteeism is when an employee is absent from the workplace for a period you deem justified. Employees are entitled to holiday days, sick leave and leave on religious grounds. But when employees abuse these laws and commit presenteeism and absenteeism business costs, both in productivity and finance can be significant.

Leaveism is another term for unhealthy work practices, such as a member of staff using their annual leave to work. According to the survey 69% felt leaveism had occurred in their organisation in the last year. Only 27% of those who had experienced leaveism felt their organisation was dealing with it.

Combating presenteeism in the workplace

With this report just weeks before 2018 Mental Health Awareness Week it’s essential as an employer to make sure you are following best practice for reducing workplace stress and presenteeism.

CIPD define the four legal principles of reducing stress as an employer:

One of the key findings in the report that can reduce presenteeism in the workplace is how technological advances in the workplace are having a positive impact on employee wellbeing not a negative one.

With the concern around specific job roles becoming automated by machines in the past few years it’s interesting that most surveyed believe workplace technological advancement is generally a good thing.

But 90% of employees believe more employees are less likely to switch off due to technology which may lead to higher absenteeism and presenteeism.

What are the effects of presenteeism?

The employee and the employer feel the effects of presenteeism. If as the employer you have staff members attending work when sick through physical or mental health conditions affecting other staff members you could see a significant productivity loss. Presenteeism and productivity are closely linked because when any member of the workforce attends work ill that can cause a productivity issue and also risk to other employees. Employees should be able to recover correctly to maintain a healthy workforce because working whilst ill can do more harm than good.

How to reduce presenteeism?

Absenteeism and presenteeism can affect your business but there are measures you can take to control them. Reducing presenteeism at work can be a struggle but following simple steps can help you and your employees. Firstly make sure all employees understand your company policy on sickness. Providing healthcare benefits and management leading by example. Another tip for businesses to follow is to create a caring workplace culture where employees feel valued and heard. Presenteeism at work and productivity are linked so looking at employees’ workloads and making sure they are coping well and not too pressured may help. Finally make sure you measure the impact of presenteeism and stay on top of it before it becomes a problem for you.

Presenteeism in the workplace FAQs

How do you manage employee absenteeism?

One way to reduce absenteeism in the workplace is to introduce a back to work interview for employees. The interview will show your company cares about the employee’s wellbeing and may help them get back into their role. For employees taking time off work, knowing they will have to go through an interview process on their return may make them think twice before doing it again.

Can you define presenteeism in the workplace?

Presenteeism, when an employee refuses to take time off sick despite being unable to function at work properly. Employee presenteeism in the workplace is dangerous and costly to businesses due to reduced productivity.

What are the issues for an employer as a result of employee presenteeism?

Employers feel the cost of presenteeism in several ways. One of the issues that arises from a presenteeism culture is the ‘productivity gap’ where staff members deliver below par work due to illness. Employers still have to pay those employees the same wages but get less in return because the quality is not optimal. The effects of presenteeism in the workplace also affect the employees as it’s a risk to their health and safety for which the employer is responsible.

How do you reduce presenteeism in the workplace?

The impact of presenteeism on employees can be big for a business and you must take it seriously. Absenteeism and presenteeism affect both employer and employee so promote a work-life balance, open conversation around mental health, flexible working where possible, wellness programmes, manageable workloads and a positive company culture. Presenteeism and productivity are linked so lead by example and put employee wellbeing first. Knowing how to manage employee absenteeism and presenteeism is key and an expert at Avensure is always on hand.