TO WORK OR NOT TO WORK: Understanding the Real Cost of Workplace Attendance

In the modern workplace, especially across Aotearoa New Zealand, employers are becoming more aware that attendance alone is not a reliable measure of productivity or engagement. Two related but distinct issues—absenteeism and presenteeism—have come to the forefront of workplace health discussions. While absenteeism is more visible and often measured in sick days or time away, presenteeism is a silent and often costlier challenge, where workers remain physically present but are unable to perform at their best due to illness, stress, or burnout.

This article explores both concepts in depth, drawing on the latest research and workplace trends, including insights from the Umbrella Wellbeing Report 2025, global studies, and practical guidance for New Zealand businesses seeking to improve wellbeing and performance.

What is Absenteeism?

Absenteeism refers to employees regularly or frequently being away from work without a reasonable or legitimate cause. It is generally easier to observe and quantify than presenteeism. Common causes include:

• Illness or injury

• Mental health struggles

• Family responsibilities or emergencies

• Poor workplace culture or low morale

• Lack of engagement or burnout

  
  

In many organisations, absenteeism is tracked through HR systems, and patterns can become evident over time. It can also be addressed more directly—through return-to-work interviews, medical certification, or attendance management policies.

However, it’s important to remember that not all absenteeism is bad. Legitimate time away for health recovery, family needs, or bereavement is essential for human wellbeing. The danger lies in habitual or unexplained absence, which may be a signal of deeper issues within the organisation.

What is Presenteeism?

Presenteeism, by contrast, occurs when employees come to work despite being physically or mentally unwell, or when they are otherwise not in a state to perform effectively. They are "present," but their productivity is significantly reduced. According to Harvard Business Review and numerous occupational health journals, presenteeism is often linked to:

• Chronic health conditions (e.g., migraines, asthma, back pain)

• Anxiety, depression, or stress-related illnesses

• Fear of job loss or retaliation for taking time off

• Workplace cultures that reward endurance over wellness

• Financial pressure or lack of paid sick leave

  
  

Presenteeism is harder to identify and even harder to manage. It can result in longer recovery times, the spread of communicable diseases (like seasonal flu), and a gradual decline in team morale.

Recent commentary from The Guardian and research out of the University of Sheffield highlight how some return-to-office mandates have driven presenteeism, particularly in post-pandemic workplaces. Staff may feel pressure to physically show up, even when remote work or rest would be more appropriate.

Which is Worse—Absenteeism or Presenteeism?

Both have serious consequences, but surprisingly, presenteeism often leads to greater productivity loss than absenteeism. While absenteeism removes a worker from the team temporarily, it is at least a transparent and manageable issue. Presenteeism can persist quietly for weeks or months, affecting quality, safety, and performance across an entire organisation.

A comprehensive review in the Journal of Occupational and Environmental Medicine found that the indirect costs of presenteeism can be up to three times higher than absenteeism, particularly in white-collar or knowledge-based roles where cognitive sharpness is essential.

In New Zealand, the 2025 Umbrella Wellbeing Report also suggests presenteeism is a growing issue. While absenteeism remained relatively stable post-pandemic, rates of reported presenteeism rose, especially among staff in frontline, care, and education sectors. Workers reported being too overwhelmed or worried about job security to take sick leave, despite knowing they weren’t functioning well.

Causes and Contributing Factors

Understanding what drives absenteeism and presenteeism is the first step toward addressing them. While some overlap exists, the key contributors often differ:

Factor	Absenteeism	Presenteeism
Illness	✅ Yes	✅ Yes
Mental health challenges	✅ Yes	✅ Yes
Fear of job loss	❌ Less common	✅ Common
Unsupportive leadership	✅ Possible	✅ Strong driver
Lack of flexible policies	✅ Sometimes	✅ Strong link
Toxic workplace culture	✅ Common	✅ Common
Financial pressure	❌ Less common	✅ Common

Organisations that foster a “hero” culture—where showing up sick or working long hours is rewarded—are particularly vulnerable to presenteeism. Conversely, organisations that lack support for wellbeing may see higher absenteeism rates as staff disengage or burn out.

Practical Steps for Employers in New Zealand

Tackling both absenteeism and presenteeism requires a nuanced approach. Punitive policies can drive problems underground, while excessive flexibility without oversight can reduce productivity. Here are some evidence-based recommendations:

1. Create a Culture of Health and Trust

• Encourage open discussions about mental and physical health.

• Provide training for managers to recognise signs of stress and illness.

• Celebrate rest and recovery as part of good performance—not the opposite of it.

2. Offer Adequate Sick Leave and Flexibility

• Ensure that employees can take time off without fear of punishment.

• Promote flexible work arrangements where appropriate.

• Allow remote work or adjusted duties for those returning from illness.

  
  

3. Use Data, But With Care

• Monitor attendance and productivity trends, but avoid micromanaging.

• Combine absenteeism records with engagement surveys and wellbeing checks.

• Conduct exit interviews to learn about deeper issues contributing to disengagement.

  
  

4. Support Mental Health

• Provide access to Employee Assistance Programmes (EAPs) and mental health resources.

• Offer resilience training, stress management workshops, or mindfulness sessions.

• Normalise the conversation around mental health in team meetings and HR policies.

  
  

5. Model Healthy Behaviour from the Top

• Senior leaders and managers should take their own health seriously.

• Avoid praising staff for "pushing through" illness or working excessive hours.

• Make it safe for others to follow suit.

  
  

The Legal and Ethical Dimension

In New Zealand, employers have a legal responsibility under the Health and Safety at Work Act 2015 to provide a safe and healthy work environment. This includes managing psychosocial hazards, such as stress, bullying, and overwork, which are often drivers of presenteeism.

Failing to take action can have consequences—not just for productivity, but for legal liability. For example, pushing unwell staff to continue working could be seen as a breach of health and safety duties, particularly if it leads to harm.

Looking Forward: A Balanced Approach

The challenge for New Zealand businesses is not just to reduce absenteeism, but to create environments where both overwork and underperformance are addressed through empathy, structure, and support.

In the future, measuring workplace health may rely more on wellbeing indicators than time-in-seat metrics. Forward-thinking employers will be those who focus on output, impact, and staff satisfaction—rather than hours logged or sick days taken.

As the Umbrella Wellbeing Report 2025 concludes, the healthiest organisations are not those where everyone shows up every day, but where people are empowered to bring their best selves to work—when they are ready and able to do so.

FINAL WORDS

Absenteeism and presenteeism are two sides of the same coin—both signal an underlying misalignment between employee health and workplace expectations. While absenteeism is easier to observe, presenteeism is often more damaging and more difficult to address.

A balanced, people-first approach that supports recovery, encourages open communication, and values true performance over mere presence is the best defence against both. For New Zealand organisations aiming to thrive in a changing world, investing in wellbeing is not a nice-to-have—it is a core business strategy.