Do you know about the hidden cost in your business?

Absenteeism and presenteeism. Your staff’s health impacts your business productivity and profitability.

Every day your business is operating, it’s either growing or losing momentum. One of the most underestimated factors behind declining productivity isn’t market conditions or customer behaviour – it’s what’s happening inside your workplace. Absenteeism costs New Zealand businesses thousands annually, with the cost of presenteeism costing even more. Many small and medium-sized business owners don’t realise how deeply these issues are affecting their bottom line.

The numbers you can’t ignore

In New Zealand, the cost of absenteeism is $1300 per person, per year, with presenteeism – when employees are at work but not functioning effectively – costing two to three times more. While sick leave is often tracked, the hidden toll of employees who suffer from presenteeism is much harder to quantify.

The recently published Umbrella Wellbeing report uncovered the emotional and behavioural toll of working while unwell. The report used the Stanford Presenteeism Scale, and found that:

• 47% found it difficult to take pleasure in work

• 39% struggled to manage job stress

• 28% lacked the energy to complete tasks

• 19% felt hopeless about finishing work

• 16% were unable to focus on achieving goals

• 9% couldn’t finish difficult tasks.

For a business with less than 50 staff, the combined impact can be significant:

• Reduced morale across teams

• Lower customer satisfaction

• Lower team engagement

• Increased mistakes

• Lower productivity

• Delayed projects

• Dissatisfaction.

What’s driving these issues?

Poor sleep, poor nutrition, lack of physical activity, and unmanaged stress are common causes. When these factors are left unaddressed, employees become more prone to illness, fatigue, and burnout. Over 60% of the New Zealand workforce claim to feel burnt out, and most employees also feel that encouraging health and wellbeing is the responsibility of their employee. Interestingly, over 50% of employees also feel that health and wellbeing is an individual’s responsibility – but that is a topic for another newsletter! 😊 

Moreso the question – who’s going to take the first step?

What can you do about it?

You don’t need a corporate-sized wellness budget to make meaningful change. Here are three practical steps you can take:

1. Start the Conversation

   Ask your team what’s affecting their energy, focus, and health. A short, anonymous survey can provide quick insights. Alternatively, having a non-judgemental 1 on 1 with all your staff will help to uncover what is really going on.

   
   

2. Model and Encourage Healthy Habits

   Consider how your workplace supports (or hinders) healthy routines. Are there opportunities for movement during the day? Are lunch breaks respected? Are leaders modelling balance?

   
   

3. Invest Where It Matters

   Small changes – such as providing access to health workshops, promoting hydration, or encouraging recovery breaks – can lead to better productivity and staff engagement.

If you’d like to have that conversation with your staff but don’t know where to start, get in touch with us. We identify practical ways to reduce the improve your staff’s health and wellbeing, and reduce costs to you as the business owner. We offer a free Wellness Strategy call to uncover what you’re struggling with.

👉 Book your free 45-minute call here.

Let’s make health a business strategy, not just a personal one.

Be well! Eske Dost