By Mark F. Herbert

As we evaluate the high costs of the current financial crisis it is important that we don’t overlook an existing issue that is only being exacerbated by the situation- the cost of presenteeism. Presenteeism is where I “show up” for work, but I am unwilling or unable to fully engage because of an underlying illness or distraction. This could be directly from my own situation or the situation of a family member.

A recent study by Cigna Healthcare provided some pretty startling statistics-

• U.S. workers reported that they spend two to five hours per week resolving personal issues at work, a productivity loss of 5 to 12%
• 61% of U.S. workers have reported to work while they were ill or dealing with personal matters
• Of that group, 62% felt that they were noticeably less productive or attentive to their duties
• 46% missed at least one day of work in the preceding six months, with 22% of those absences related to family matters

A different study by the National Mental Health Association estimated that the costs of this productivity loss are over $200 billion annually. Let’s put that in perspective that means in three and a half years we have reached the point where these losses are equal to the Federal bailout!

Now I want to make another point, these losses were calculated before we entered our current financial crisis! I would venture to say that the scores have not improved over the last few months.

I have been a practicing human resources manager, executive, and consultant for almost 30 years. I went through the time when our philosophy was that employee’s needed to “leave their problems at home”, well, obviously those days are over.

For the purposes of balance, I want to provide you with the snapshot of the alternative- a workplace where people are engaged.

Organizations whose employees are fully engaged enjoy the inverse of the statistics I just shared with you-

• Moving an employee’s level of engagement from low to high results in an average 21% increase in productivity
• Organizations with high levels of employee engagement typically enjoy a 20% per capita higher performance level than their peers
• Organizations with high total engagement (employee and customer engagement) typically outperform their peers on key financial metrics by 100%!

So what is my point? You have an investment in participating in addressing these issues, and there are cost effective tools available for you to do so. One of the tools available to employers is the Employee Assistance Plan. While these plans have been around for years, current estimates say that only between 2 and 8% of employees are utilizing them.

Effective employee assistance plans offer much more comprehensive solutions than their predecessors did- they aren’t just about substance abuse and anger management anymore. A good EAP will offer access to wellness training, debt counseling, financial management, credit counseling, and potentially even legal advice. Very sophisticated EAPs even have supervisory training and mediation services available to help employers deal with root cause and systemic issues rather than just putting a “patch” on a situation.

I don’t mean to imply that providing EAP services to your employees is going to create engagement, but I do want to go on record as saying you employ and manage whole people. Ignoring the issues and concerns your employees are experiencing in other parts of their life, or worse yet because of issues in the work setting, are costing you money directly and indirectly.

I can assure you from personal experience that the costs of offering EAP services to your employees and their dependents are much cheaper than expensive mental health services or employee litigation.

Engaged workforces are a competitive advantage, period! Recognizing and protecting your investment in your employee’s health and mindset is an important step in creating that environment of engagement, and at a fairly reasonable cost. Can you afford to “give up” 5 to 12% of your worker’s productivity every year?

Mark F. Herbert is a consultant, author, and speaker with over thirty years of experience building and managing engaged workforces in organizations ranging from Fortune 100 to small entrepreneurial businesses. He has been a speaker on leadership and human resources topics on a regional and national basis and has recently published the book Managing Whole People- One Man’s Journey. You can reach Mark at Mark@newparadigmsllc.com or visit his website at www.newparadigmsllc.com.