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Posted on January 12, 2006
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Health
Financial Consequences of Worker Absences
According to The Multiplier Effect: The Financial Consequences of Worker Absences, an article on the Knowledge@Wharton Web site, the indirect costs associated with poor worker health might actually exceed direct medical costs. When workers take sick days, the economic impact of those absences can ripple through an organization, especially if the employee is part of a team whose output is deadline driven. Wharton professor of healthcare systems Mark V. Pauly, who is quoted in the article, says that when researchers take this into account, their estimate of the cost of health-related workforce absences for the entire economy increases by a third — justification enough, perhaps, for employers to consider spending more money to improve employee health benefits.
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