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For employers, the figure highlights a growing source of risk that rarely appears on balance sheets but steadily erodes performance and resilience, says Blessing Utete, Commercial Executive Head at Old Mutual Corporate. “Many employers continue to focus on visible measures such as sick leave and absence, while the larger risk lies with employees who are present but unwell. Presenteeism is more difficult to track, but its impact on productivity, service delivery and decision-making can be equally damaging.”
While absenteeism is visible and measurable, a significant share of productivity loss is linked to employees who remain at work while unwell, distracted or financially stressed. This phenomenon, known as presenteeism, is widely recognised as a material contributor to lost output and, in many studies, rivals or exceeds the impact of absence.
The hidden productivity cost of presenteeism
Health challenges often sit at the centre of this dynamic. Employees may delay treatment, manage chronic conditions without adequate support or continue working while unwell because taking time off feels financially or professionally risky. Over time, this can result in fatigue, disengagement and errors, placing pressure on service delivery, team morale and leadership capacity.
“What we see across organisations is that delayed care and financial stress often force employees to push through illness,” Utete says. “That may keep people at their desks, but it undermines performance and increases people's risk over the long term.”
From employee benefits to business risk
As a result, employee healthcare support is increasingly being viewed not simply as a benefit, but as a strategic lever to protect workforce resilience and organisational performance.
“For employers working across complex and diverse workforces, healthcare support is no longer just about funding medical events,” says Utete. “It has become a way to actively manage productivity risk and support sustainable business outcomes.”
Improved access to healthcare support is emerging as one practical response. By reducing out-of-pocket medical costs and improving access to care, health insurance can help limit both absenteeism and presenteeism, while easing financial stress and enabling earlier intervention.
“When employees can access care earlier and with less financial pressure, recovery is quicker and the impact on performance is reduced,” Utete says. “That has a direct effect on productivity, engagement and retention.”
Building workforce resilience
Employees who feel supported in their health and wellbeing are generally more engaged, more productive and more likely to remain with their employer. As business leaders plan for 2026, flexible and accessible healthcare solutions are becoming an increasingly important component of workforce resilience strategies.
Old Mutual Corporate offers a range of employee benefit solutions, including health insurance, medical aid, gap cover, occupational health services, executive wellness, onsite clinic management and employee assistance programmes. These solutions are increasingly being used by employers as part of broader risk and resilience strategies, rather than as standalone benefits.
“For employers, the question is no longer whether healthcare support is a discretionary cost,” Utete concludes. “It is whether the productivity cost of under-investing in employee health is sustainable in an environment where people risk increasingly shapes business outcomes.” DM
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