'The Value of Rude Health': Employees' Well Being, Absence and Workplace Performance
AbstractThis paper brings new evidence on the relationship between employees' well being, sickness absence and four dimensions of workplace performance i.e. productivity, efficiency, quality of service and profitability. It uses a new panel dataset with monthly observations over two years for 48 local units of a large multi-site organisation in the logistics sector. It finds that good consultation and communication at the local level are associated with lower absenteeism. It also finds that lower absence is associated with higher efficiency, productivity, quality of the service and profitability of the firm. Finally, the authors suggest that the link between workers' absence and this firm's profitability runs through the increased use of replacement labour which raises short-run costs and reduces quality of service.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0919.
Date of creation: Apr 2009
Date of revision:
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-17 (All new papers)
- NEP-HAP-2009-06-17 (Economics of Happiness)
- NEP-HEA-2009-06-17 (Health Economics)
- NEP-LAB-2009-06-17 (Labour Economics)
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Cahiers de recherche
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- Joseph Lanfranchi & John Treble, 2010. "Just-In-Time Production, Work Organization And Absence Control," Manchester School, University of Manchester, vol. 78(5), pages 460-483, 09.
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