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Established in 1914 by the state legislature, State Fund is California's most reliable provider of workers' compensation insurance and a vital asset to California businesses. State Fund supports California's entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers' compensation insurance, helping California employers keep their workplaces safe, and restoring injured workers.



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Presenteeism

The direct and indirect costs associated with absenteeism are obvious and easily documented. Unfortunately, employers may be unaware of the hidden costs of presenteeism, which is a reduction in productivity when employees come to work suffering from such illnesses as work and non-work-related musculoskeletal disorders (MSDs), headaches, allergies, a cold, the flu, and even more serious health concerns, such as hypertension and cancer.

Measuring the Cost of Presenteeism

Attempting to quantify the cost of presenteeism is a relatively new phenomenon. Compared to absenteeism, where the 100% productivity loss is obvious, presenteeism's effect is much harder to measure.

According to the CORNELL INSTITUTE FOR HEALTH AND PRODUCTIVITY STUDIES, the MEDSTAT Group, and LYNCH CONSULTING (Journal of Occupational and Environmental Medicine, Vol. 46 No. 4), on-the-job productivity losses associated with presenteeism exceed the costs of absenteeism, as well as medical and disability benefits. Of the total cost of employee illness, 18% to 61% is estimated to be due to presenteeism.

Preventing Presenteeism

References

California Department of Industrial Relations

Revised: 04/2017

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