At work but not working: Report shows rise in presenteeism

Australia's mental wellbeing score sits below the global average and there is a link to productivity

At work but not working: Report shows rise in presenteeism

Absenteesim leaves workforce gaps that can be tricky for team leaders to manage but a bigger problem for business may be the employees who turn up but are not productive.

The Workplace Wellbeing 360 Report, published by Intellect, found presenteeism is on the rise – being described as a “phenomenon.” The term relates to the loss in productivity due to physical or mental health issues, despite being physically present at work.

In 2024, the average global absenteeism and presenteeism rates were 7.7% and 41.2%, respectively, the report finds, compared to 9.8% and 38.2% in 2023 – indicating presenteeism is a bigger problem than actual absenteeism.

In Australia, absenteeism and presenteeism rates are 7.3% and 44.4%, respectively. The report notes this not only impacts on productivity and efficiency but poses a greater financial burden - costing employers three times more than absenteeism.

Stress management and mental wellbeing initiatives

The report found Australia’s mental wellbeing score sits below the global average (53.5% vs 56.1%) – with a strong correlation being made to employee productivity.

And whilst employee wellbeing and work engagement had increased from 2023 to 2024, overall employee productivity declined – primarily due to downward shifts in stress management, growth mindset and self-awareness.

“Australia has built a reputation for valuing wellbeing and balance, but the reality is much more nuanced. One thing is clear - mental wellbeing is a key driver of business success,” said Theodoric Chew, Co-founder & CEO of Intellect.

“Employers that invest in support systems, initiatives and programs that help employees feel valued will ultimately create healthier workplaces where teams are more productive and engaged.”

Calls for greater support for employees

Intellect’s findings analysed the strengths of the Australian workforce lies in self-awareness, encouraging participation, and relationship building – things that should be focused on going forward.

It found that even though there has been year-on-year improvement in mental wellbeing, employees in Australia still perceive it as their weakest personal factor.

When compared to the global workforce, Australian employees are said to stand out in growth mindset, encouraging participation, and maintaining work-life balance -but fall behind in stress management and goal orientation.

Employers need to implement targeted initiatives to help employees manage stress better, support their mental wellbeing, and optimise their productivity healthily, the report summarises.