Improving Workplace Health by Encouraging Sick Time Use

Southern New Hampshire University

Improving Workplace Health by Encouraging Sick Time Use

Kurt Mithoefer

QSO 510 – Quantitative Analysis for Decision-Making

Dr. Danielle Babb

June 22, 2015

Abstract

Workforce illness costs roughly $576B annually from sick days to workers compensation in the United States.  Driving this cost loss are factors such as absenteeism due to illness to the cost of disability and workers’ compensation, poor health costs the US over half a trillion dollars annually.  Many companies are starting to offer paid sick time to their workforce, but there are varying options, ranging from unlimited sick time off to vacation and sick time off bundled into one category.  One component of limiting a company’s annual loss of revenue due to illness is by offering and enforcing sick time use.  Surveys were conducted and it was determined when a company bundles vacation time along with sick time, people are less willing to stay home when sick as they don’t want to lose a vacation day which resulted in longer periods of influenza outbreaks.  Company’s who offer separate PTO (Paid Time Off) buckets for vacation and sick time found people were more likely to stay home when ill and as a result the company’s workforce’s overall good health was higher.

Improving Workplace Health by Encouraging Sick Time Use

Introduction

        In the United States where the economy continues to be struggling to rebound from the recent decline, can employees truly afford to miss work without pay? Can employers afford to have a sick employee expose other workers to infection if they choose to work while sick?  “National statistics and research show that workers who utilize available sick days are not only more productive, but will also experience fewer medical emergencies that require expensive insurance costs.” (Beauchamp, 2014).  Throughout the Unites States, companies are offering their workforce varying sick time options.  Ranging from, No Paid Sick Time (resulting in employees having to use a vacation day when sick), a set amount of sick days given annually, to unlimited sick days.  Each of these days have pros and cons, but the most impactful option which is resulting in the highest loss of company productivity is due to not offering their employees any sick time off.  “In fact, according to the National Partnership for Women and Families, adults without paid sick days are 1.5 times more likely than adults with paid sick days to report going to work with a contagious illness, such as the flu” (Beauchamp, 2014).