Presenteeism vs. Absenteeism: Which is Worse?

Running a business can be challenging. You must consider all sorts of factors such as revenue, capital, and, most importantly, your employees. Among the challenges of managing a team of workers is protecting your company against inefficient employees.

Inefficient employees can cost your company as much as 20% in revenue. It can also cause delinquency, low morale, and high turnover rates. However, inefficiency can be tough to discover. However, there are two things you should always keep an eye out for absenteeism and presenteeism.

What is Absenteeism?

Absenteeism is when an employee is not physically present at work. It can be for various reasons, such as illness, injury, or personal problems. It costs companies a lot of money. It‘s estimated that unscheduled absences can cost your company $3,600 for hourly workers and $2,660 for employees with salaries annually.

The Problem With Absenteeism

If you have absenteeism, it’s essential to address the problem. Left unchecked, it can lead to several issues for your company, including:

  • Reduced productivity
  • Higher costs
  • Missed deadlines
  • Decreased morale
  • Increased stress levels

While absenteeism can be challenging to manage, it is usually easier to spot than presenteeism, which makes it a considerable advantage for your company. On the other hand, presenteeism is an insidious killer and one that can last for many years.

What is Presenteeism?

Presenteeism is when an employee is physically at work but not working to their fullest potential. This can be for a variety of reasons as well, such as illness, injury, or personal problems. Unlike absenteeism, presenteeism is often hard to spot. It’s been estimated that presenteeism can cost companies up to $150 billion annually.

The Problems With Presenteeism

Presenteeism has the same problems as absenteeism. But the significant difference is that presenteeism is often harder to spot. It can happen to your company now, and you wouldn’t know about it.

The effects of presenteeism can be just as costly to organizations but in different ways. For example, when employees come to work sick, they are more likely to spread their illness to others. As a result, it can lead to a decrease in productivity as well as an increase in healthcare costs. This can have considerable effects on your organization.

So which is worse?

There’s no easy answer. Both absenteeism and presenteeism can be costly for employers. However, presenteeism may be more challenging to detect and manage. Absenteeism can cost your business a lot of money. However, presenteeism can cost your business more in the long run because you don’t know it’s happening. In addition, you can’t have a solution for a problem you don’t know about. Thankfully, there are ways to handle both of these problems. The first is with performance reviews.

Performance Reviews

One way to manage absenteeism and presenteeism is through performance reviews. It’s where you sit down with your employees and talk about their work. You can ask them about their attendance, punctuality, and overall performance. It’s an excellent way to get a pulse on what’s going on with your employees. It also allows you to address any issues that may be causing problems.

It can also help you spot delinquent employees that might be taking advantage of your company. However, there is another way to spot delinquent companies before you even hire them: a robust recruitment service.

hiring manager shakes hands with newly hired employee

Recruitment Service

A recruitment service can help you spot problem employees before hiring them. They can do this by conducting background checks and reference checks. This will give you a better idea of who you’re hiring and whether or not they’re likely to cause problems down the road.

However, recruitment services in the United States are expensive, especially if you want to hire overseas workers. If you’re planning to have overseas employees, it might be wiser to outsource to companies outside the country. For example, recruitment companies in the Philippines are much cheaper than in the United States. They can also find overseas workers for you inside the Philippines and the entirety of Southeast Asia. It’s a great option if you’re planning to start a branch in another company or want to save on overall costs.

Hire a Manager

Lastly, you can always hire a manager. This is someone whose job is managing absenteeism and presenteeism in your company. They will work with your employees to ensure they meet their deadlines and come to work on time. They can also help you develop policies to prevent these problems from happening in the first place.

While hiring a manager may seem like a lot of work, it’s often worth it in the long run. They can save you a lot of money and headaches in the future.

Absenteeism and presenteeism are two significant problems that can cost companies a lot of money. However, there are ways to manage these problems. By following the options listed above, you can help to improve your company’s overall productivity and bottom line.

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