As someone immersed in the world of large corporations on a daily basis, a recurring message echoes through boardrooms and executive suites alike: “We need to do more with less.” While this mantra embodies the spirit of efficiency and optimisation, its implementation is fraught with challenges, particularly when it comes to human capital. Despite the noble intentions, the stark reality is that pushing employees to their limits often leads to unintended consequences, chief among them being presenteeism.
Picture this: You're at the helm of a company with a workforce of 5,000 individuals. Every day, a significant portion of their time is lost to presenteeism—the phenomenon where employees show up for work but are far from their optimal selves. They trudge through tasks, their minds elsewhere, their productivity waning. But what does this really mean for your bottom line?
If 10% of your workforce's time is lost to presenteeism, the implications are staggering. It's not just a matter of unproductive hours; it's a drain on resources, a dent in morale, and a hindrance to progress. In a company of 5,000 employees, this equates to a loss of 500 people's worth of productivity every single day.
But here's where it gets even more sobering: in a year, that's over 125,000-man days lost to presenteeism. Not only does this mean that your company isn't operating at its full potential that projects are delayed, mistakes are made, and opportunities slip through the cracks. But if we put a price tag on it, let's say the average daily salary in Luxembourg of €333, that's a whopping €41,625,000 in lost productivity and fixed costs annually. Even more sobering: Just imagine how much extra revenue your company needs to generate to cover that lost profit!
Now, imagine what could be achieved if those lost days were reclaimed, if every employee showed up not just physically, but mentally and emotionally engaged. The potential for growth, innovation, and success is boundless.
So, CFOs, the choice is clear: do you continue down the path of presenteeism by simply pushing the “We need to do more with less” message, sacrificing long-term success for short-term gains? Or do you invest in your workforce, empowering them to thrive and driving your company towards its full potential? The decision rests in your hands, and the stakes couldn't be higher.