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Production Losses due to Absenteeism and Presenteeism: The Influence of Compensation Mechanisms and Multiplier Effects

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  • Werner Brouwer

    (Erasmus University Rotterdam
    Erasmus Centre for Health Economics Rotterdam, Erasmus University Rotterdam)

  • Kaya Verbooy

    (Hotel Management School Maastricht)

  • Renske Hoefman

    (The Netherlands Institute for Social Research)

  • Job Exel

    (Erasmus University Rotterdam
    Erasmus Centre for Health Economics Rotterdam, Erasmus University Rotterdam)

Abstract

Background Productivity costs can form a large and influential component of total costs in an economic evaluation taking a societal perspective. In calculating productivity costs, estimating productivity losses is a central element. Compensation mechanisms and multiplier effects may influence these losses but remain understudied. Compensation mechanisms could reduce productivity losses while multiplier effects may increase them. Methods Data on productivity losses were collected in 2015 using an online survey among a sample of persons aged 15–65 years in The Netherlands who worked at least 12 h per week and reported to have experienced absenteeism and/or presenteeism during the past 4 weeks. A total of 877 respondents completed the survey that contained questions on productivity losses, compensation mechanisms, and multiplier effects. Results We found that 45.5% of the respondents reported absenteeism (average 6.5 days) during the past 4 weeks, losing on average 48.7 working hours, while presenteeism was experienced by 75.9% of respondents, with an average loss of 10.7 working hours. Compensation mechanisms were reported by 76.9% of respondents, compensating almost 80% of their lost production, while multiplier effects were reported by 23.6% of respondents, reducing the productivity of 4.2 colleagues by 27.8% on average, implying a multiplier of 2.1 in that subgroup. Conclusions This study highlights that compensation mechanisms and multiplier effects are common and may substantially affect production losses. Investigating these mechanisms and effects further, as well as their interactions, remains important. Translating these findings into productivity cost calculations in economic evaluations is not straightforward and requires attention, especially since compensation mechanisms may not be costless and, for multiplier effects, the value of hours of colleagues may not be similar to that of the person experiencing health problems.

Suggested Citation

  • Werner Brouwer & Kaya Verbooy & Renske Hoefman & Job Exel, 2023. "Production Losses due to Absenteeism and Presenteeism: The Influence of Compensation Mechanisms and Multiplier Effects," PharmacoEconomics, Springer, vol. 41(9), pages 1103-1115, September.
    • Handle: RePEc:spr:pharme:v:41:y:2023:i:9:d:10.1007_s40273-023-01253-y
    DOI: 10.1007/s40273-023-01253-y
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    References listed on IDEAS

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