The Cost of ‘Soldiering On’: Why Presenteeism is a ‘Sick Tax’ on Your Business

Have you ever wrestled with the decision of calling in sick, feeling a pang of guilt or concern about what your absence might mean for your job or team? If so, you're not alone. This common feeling is deeply tied to what experts call the ‘sick tax’.

The sick tax refers to that unspoken pressure that forces sick workers into the office when they really should be resting at home. It's a situation where individuals can feel they could be criticised or penalised for not coming to work when they’re sick. The reality, as highlighted by Natasha Hawker, Managing Director, Employee Matters, is simple: "if you are sick, you and your germs should stay at home". The old ‘soldier on’ mentality is detrimental to a productive workplace. This pressure on your employees to present at work can be even further exacerbated by hybrid work formats, where they may feel that being off sick on a day they would normally be in the office could be viewed poorly by management. 

The Culture of Presenteeism is a Bad Idea

The negative consequences of presenteeism are significant, directly impacting your business's productivity and overall health. One sick employee turning up to work can have a devastating domino effect: someone comes in sick when they should be at home resting and infects a significant portion of their team. Imagine the immense loss of productivity when an entire team or office is affected for an extended period.

Understanding and promoting employee wellbeing is crucial for engagement, which is sometimes defined as the Measure of Discretionary Effort. While the sources don't directly link sick leave and engagement, it's clear that employees who feel supported and cared for, including when they are unwell, are more likely to be engaged. Businesses that score over 75% on employee engagement surveys see 21% more productivity and 20% more profit compared to those with lower engagement. As Employee Matters has always said, employees are your greatest asset, but also potentially your greatest liability, and fostering a culture where they feel safe to take sick leave contributes to their overall wellbeing and, by extension, their commitment and discretionary effort. 

Employee Rights and Leading by Example

In Australia, every permanent full-time employee is entitled to 10 days personal leave annually - or what we refer to more commonly as sick leave. This entitlement is pro-rated for part-timers; casual employees have no entitlement to paid personal leave. These days are provided for a reason: so employees can take the time they need to rest and recover and return to the office to perform at optimum levels.  

To combat the sick tax and promote a healthy work environment, leaders must lead by example. Managers should be actively encouraging employees by openly stating: "Hey guys it's okay If you're sick... Don't come in". If you are a manager, remember to lead by example; if you are unwell, take the day off sick and let people know this is what you have done.  When an employee is sick, we recommend that they call in rather than text to have a conversation, allowing managers to plan alternative resourcing and coverage. 

In conclusion, moving beyond the outdated ‘soldier on’ mentality and tackling the ‘sick tax’ is not just about employee wellbeing; it's a strategic move for business health and productivity. By valuing employee recovery and promoting a culture where it's truly okay to be sick, businesses can avoid significant productivity losses and foster a more engaged and ultimately more profitable workforce.