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The Value of Rude Health: Employees Well Being, Absence and Workplace Performance

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Author Info
David Marsden
Simone Moriconi
Abstract

This paper brings new evidence on the relationship between employees' well being, sickness absence and fourdimensions of workplace performance i.e. productivity, efficiency, quality of service and profitability. It uses anew panel dataset with monthly observations over two years for 48 local units of a large multi-site organisationin the logistics sector. It finds that good consultation and communication at the local level are associated withlower absenteeism. It also finds that lower absence is associated with higher efficiency, productivity, quality ofthe service and profitability of the firm. Finally, the authors suggest that the link between workers' absence andthis firm's profitability runs through the increased use of replacement labour which raises short-run costs andreduces quality of service.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0919.

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Date of creation: Apr 2009
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Handle: RePEc:cep:cepdps:dp0919

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Related research
Keywords: Time Allocation; absenteeism; Safety; Accidents; Industrial Health;

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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  1. Coles, Melvyn G. & Treble, John G., 1996. "Calculating the price of worker reliability," Labour Economics, Elsevier, vol. 3(2), pages 169-188, September. [Downloadable!] (restricted)
  2. Barmby, T A & Orme, C D & Treble, John G, 1991. "Worker Absenteeism: An Analysis Using Microdata," Economic Journal, Royal Economic Society, vol. 101(405), pages 214-29, March. [Downloadable!] (restricted)
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  3. Bradley, Steve & Green, Colin & Leeves, Gareth, 2007. "Worker absence and shirking: Evidence from matched teacher-school data," Labour Economics, Elsevier, vol. 14(3), pages 319-334, June. [Downloadable!] (restricted)
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  4. Robert Drago & Mark Wooden, 1992. "The determinants of labor absence: Economic factors and workgroup norms across countries," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 45(4), pages 764-778, July.
  5. Natasha Caverley & J. Barton Cunningham & James N. MacGregor, 2007. "Sickness Presenteeism, Sickness Absenteeism, and Health Following Restructuring in a Public Service Organization," Journal of Management Studies, Blackwell Publishing, vol. 44(2), pages 304-319, 03. [Downloadable!] (restricted)
  6. Allen, Steven G, 1981. "An Empirical Model of Work Attendance," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 77-87, February. [Downloadable!] (restricted)
  7. Melvyn Coles & Joseph Lanfranchi & Ali Skalli & John Treble, 2007. "Pay, Technology, And The Cost Of Worker Absence," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 268-285, 04. [Downloadable!] (restricted)
  8. Georges Dionne & Benoit Dostie, 2007. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 61(1), pages 108-120, October. [Downloadable!] (restricted)
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This page was last updated on 2009-11-18.

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