GenZ Explainer: What is 'Presenteeism' and how to manage it?

As organizations adapt to post-pandemic workplace dynamics, a growing phenomenon is quietly sapping productivity: presenteeism.

Defined as the act of being physically present at work while unwell, unmotivated, or disengaged, presenteeism may seem less damaging than absenteeism, but research suggests otherwise. In fact, studies indicate that the loss in productivity from presenteeism may be up to three times higher than absenteeism, making it a silent threat to organizational growth.

A recent study by Global Corporate Challenge reveals that presenteeism costs businesses up to 57.5 days of lost productivity per employee annually - an alarming figure when multiplied across entire workplaces.

Similarly, a 2023 report from Gallup found that globally, only 23% of employees feel engaged at work, highlighting that mental disengagement is a widespread issue. These statistics point to an urgent need for organizations to not just focus on attendance, but also on the quality of that presence.

Why Does Presenteeism Happen?

Unlike absenteeism, which is easier to track, presenteeism often goes unnoticed. Employees may show up to work even when they are mentally unwell, stressed, or physically ill, either out of fear of being perceived as lazy or due to pressures of meeting deadlines.

However, post-pandemic, the rise of remote work initially helped mitigate presenteeism by giving employees greater flexibility. However, the return to hybrid or full-time office models has led to a resurgence of this issue. A very recent move by Amazon mandated its employees to return to the office five days a week from next year, leading to 73% considering quitting.

The modern corporate culture - where long hours are often rewarded-contributes significantly to presenteeism. Employees may feel compelled to work through illness or personal challenges to maintain their standing. This often leads to burnout, reduced job satisfaction, and ultimately, lower overall output.

The Cost to Businesses

The financial implications of presenteeism are staggering, when it is considered as one of the key contributors to an employee's receding mental health. According to a Deloitte Touche Tohmatsu India LLP (DTTILLP) estimate, poor mental health among employees cost Indian businesses around Rs 1.1 lakh crore (US$14 billion) due to absenteeism, presenteeism, and attrition. Out of the total cost of Rs 1.1 lakh crore, presenteeism accounted for Rs 51,000 crore.

For businesses, the cost can manifest in multiple ways: poor decision-making, errors, reduced creativity, and lower morale among teams. Moreover, employees who continue to work while unwell can experience a longer recovery time, compounding the problem.

How to Manage Presenteeism?

1. Prioritize mental health

Businesses need to create a culture that normalizes taking breaks and seeking mental health support. Offering access to employee assistance programs (EAPs), providing mental health days, and implementing workshops on stress management can help. A 2024 Deloitte study found that engagement levels rise by 20% and the likelihood of turnover reduces by 87% when employees trust their organizations' commitments to improving wellbeing.

2. Foster open communication

Employees are more likely to show up while unwell if they feel their absence could harm their reputation or team performance. Leaders must encourage open dialogues about workload and well-being, ensuring that employees don't feel guilty for taking time off to recover.

3. Offer flexible work options

Flexibility is a key factor in reducing presenteeism. Hybrid work models or staggered work hours can ease the pressure employees feel to be "always on." A study found that companies offering flexible work schedules reported lower levels of presenteeism than those with rigid work policies.

4. Early intervention by management

Line managers play a crucial role in identifying presenteeism. Training them to recognize signs-such as frequent mistakes, lack of focus, or declining output-can prompt early interventions.

5. Revisit performance metrics

Rewarding hours spent in the office or time logged online is outdated. Instead, businesses should shift to outcome-based performance metrics. This focuses on what an employee achieves, not the time they spend on tasks, giving them the freedom to take necessary breaks when unwell.

Conclusion

Presenteeism is more than just a workplace trend—it’s a costly issue that’s deeply ingrained in today’s corporate culture. Addressing it requires a concerted effort to promote well-being, encourage flexibility, and create an environment where employees feel supported in managing their health. For businesses, the benefits of reducing presenteeism are clear: healthier, more engaged employees, and a stronger bottom line. As the future of work continues to evolve, tackling presenteeism should be a priority for every organization looking to thrive.

Sources: Deloitte, Gallup, Forbes