PremierSource

A news release reported that the survey by Mercer and Marsh said "substantial" financial opportunities can be gained through a healthier workforce. The survey report pointed out that health benefit cost is about 16% of payroll while the cost of absence programs - incidental absence, STD, long-term disability (LTD) and workers' compensation - together is 4% of payroll.

Employers also have to deal with the hidden costs of employee absence - replacement labor and loss of productivity - that is estimated at about 3% of annual payroll. In the health care industry workflow problems caused by absent or underperforming staff can lead to issues with quality of care and greater liability exposure.

"It comes down to maintaining productivity as well as managing health care cost," said Sue Willette, head of Mercer's health and productivity management group, in the announcement. "It's clear that if your employees are not at work - or are at work but not 100% healthy - productivity suffers."