‘Presenteeism’ on the rise, a hidden threat to employee productivity and business health

In a year marked by a notable drop in absenteeism, a concerning trend has emerged — more employees are physically showing up to work, but their productivity is declining. A recent report from Intellect featured in an article by HRD Asia reveals that absenteeism fell by 22% in 2024, reaching just 7.69%. However, the report highlights a significant rise in presenteeism, with a marked increase of 8%, bringing the total to 41.2%. This figure is now more than five times higher than absenteeism, signalling a potential challenge for organisations aiming to maintain a fully engaged and efficient workforce.

The industries most affected by this rise in presenteeism include manufacturing, finance and insurance, and luxury retail and fast-moving consumer goods. Manufacturing saw the highest increase at 8%.

The hidden costs of presenteeism – a financial drain

While absenteeism remains a known concern, the report warns that presenteeism could be an even greater financial burden on businesses. The study found that absenteeism costs employers an average of $318 per employee per month, while presenteeism costs a staggering $990 per employee—nearly three times as much. This highlights not only the prevalence of presenteeism but also the severe financial implications it has for companies, underlining the need for businesses to address this issue proactively.

Employees often feel compelled to come to work even when they are unwell or struggling to focus, due to factors such as workload pressures, job insecurity, and the difficulty of switching off in a remote work environment. Intellect’s CEO, Theodoric Chew, also has a theory that employees like to believe that they are fine despite reduced focus and energy. He attributes this behaviour to a lack of self-awareness and poor stress management skills, which can lead to passive coping mechanisms like procrastination and disengagement.

Chew emphasises that organisations must invest in comprehensive workplace well-being initiatives to foster a healthier and more productive work environment. “It’s crucial that employers create environments where employees don’t just show up but can truly thrive,” Chew said. “Support systems that make employees feel valued are key to reducing presenteeism and promoting long-term wellbeing.”