Presenteeism is the situation wherein employees show up to work even if they’re sick or unwell, feel pressured to prove commitment and end up operating well below their potential. Although presenteeism doesn’t show up on a leave report, unlike absenteeism, it is estimated to cost Australian businesses around a whopping $34 billion a year. We believe that it’s more a leadership and culture issue rather than an individual one. The right leadership training and behaviour change at the top can solve it.
“Presenteeism is when employees come to work while sick, unwell or under a preconceived notion of commitment and operate below their normal capacity”.
Unlike absenteeism, presenteeism does not appear on a leave report or a headcount dashboard because the person is logged in, sitting in meetings, and even hitting deadlines on paper. However, the desired output isn’t there. For senior leaders focused on productivity and cost control, presenteeism is an expensive problem that does not show up on the reports.
Presenteeism is not always due to an individual’s failures. Organisations unknowingly are known to implicitly reward those who are “always available,” and it becomes a marker of one’s commitment to work. With technological growth, access to emails and information is not restricted to the physical workplace and replying to enquiries and requests outside work hours is commonplace – regardless of what the well-being policy says on paper. This, in due time, leads to burnout, increased stress and even cognitive dissonance in individuals.
This is where the gap sometimes lies – The policy exists, but the behaviour modelled by leadership tells a different story. Middle managers take their cues from what they see senior leaders do and not just what is written in the handbook. Equipping leaders to have open and honest conversations will help them identify and prevent the loss of valuable team members. That’s exactly what our Leadership & Management training courses focus on.
What Causes Presenteeism in the Workplace?
As mentioned above, presenteeism is usually driven by a combination of workplace culture, policy and personal financial pressure. The most common causes include:
| Cause | Why It Happens |
| High engagement and loyalty | Committed employees don’t want to let the team down, even when unwell |
| Fear of judgement or discrimination | Past criticism for taking sick leave discourages future leave requests |
| Heavy workloads and understaffing | No one to cover the work, so employees feel they can’t step away |
| Financial pressure and job insecurity | Limited paid sick leave or casual work makes staying home feel risky |
| Strict absence policies | Requiring medical certificates or disciplinary action for sick days pushes people to work through illness instead |
A healthy team starts with leaders who know how to spot the signs before burnout hits!
What Presenteeism Costs Australian Businesses
Presenteeism is estimated to cost the Australian economy approximately $34 billion per year, according to a report prepared for Pathology Awareness Australia (PAA) on the use of health resources [1].
At an organisational level, that figure translates into lost output, elevated error rates, higher turnover, rising compensation and healthcare costs. Most of which sit outside standard productivity reporting until leadership knows to look for them.
For businesses already managing compensation premiums and absence-related costs, presenteeism represents a comparable and often larger, hidden line item.
- Beyond Blue’s survey found workers aged 18-29 experience the highest rates of burnout. [2]
- The Robert Half data showed over 85% of Gen Z workers experiencing burnout, compared with 81% of Millennials and Gen Xers, and just over 70% of Baby Boomers. [3].
- Beyond Blue’s survey found workers aged 18-29 experience the highest rates of burnout. [2]
- The Robert Half data showed over 85% of Gen Z workers experiencing burnout, compared with 81% of Millennials and Gen Xers, and just over 70% of Baby Boomers. [3]
The Organisational Cost of Presenteeism
Left unaddressed, presenteeism compounds across several fronts that matter to the business and not just the individual. Some of them are as below
- Lost productivity
- Reduced team cohesion
- Accidents
- Job insecurity/turnover
- Worsening health
- Longer recovery periods
There is also a mental health dimension worth flagging at the leadership level. Employees under psychological strain are statistically more likely to push through and attend work than to request leave, largely due to stigma. That means a visible rise in presenteeism can be an early indicator of deeper well-being issues across a team, well before it surfaces as a formal grievance, an exit interview or a workers’ compensation claim.
Where does leadership intervention make the difference
Because presenteeism doesn’t appear in standard reporting, addressing it starts with leadership visibility and behaviour and not policy alone. The interventions that move the needle most are:
- Set the tone from the top. Sick leave needs to be visibly normalised by senior leaders, not just permitted in policy.
- Audit workload distribution. Chronic understaffing and unrealistic deadlines are two of the most direct drivers of presenteeism and two of the most controllable.
- Equip managers to recognise the signs. Presenteeism typically presents as reduced engagement, more errors or an energy shift. The key sometimes lies in recognising the discomfort in team members for what it is – A sign that Something Matters
- Build psychological safety at every reporting level. Employees need confidence that raising a wellbeing concern won’t be read as a performance issue.
While we recommend these interventions, none works as a one-off memo. Any action you choose to take will require leaders who’ve actually developed the skill of having these conversations. This is the gap CTO’s Leadership & Management training is designed to close.
Equip your leaders to address this before it shows up on the balance sheet!
Presenteeism is a leadership and culture challenge, which means it’s a solvable one, but it requires leaders across your organisation who are equipped to recognise it and act on it early. Organisations that invest in this capability consistently see the flow-on effect in engagement, retention and productivity, well beyond the immediate cost of presenteeism itself.
CTO’s Leadership & Management training programs are built to give your leadership team the practical tools and confidence to manage this proactively, tailored to your organisation’s specific context, not delivered off the shelf.
Ready to discuss a program for your organisation?
Frequently Asked Questions
What is the difference between presenteeism and absenteeism?
Absenteeism is when an employee is away from work. Presenteeism is when an employee attends work while unwell and operates below their normal capacity. Presenteeism is harder for organisations to track because it doesn’t appear on leave reports.
What are the main causes of presenteeism?
The main causes are heavy workloads and understaffing, fear of judgement for taking sick leave, financial pressure and job insecurity, rigid absence management policies, and high personal engagement or loyalty to the organisation.
How much does presenteeism cost the Australian economy?
A report prepared for Pathology Awareness Australia estimated the cost of presenteeism to the Australian economy at approximately $34 billion per year.
How can leadership teams reduce presenteeism across an organisation?
Leadership teams can reduce presenteeism by visibly normalising sick leave from the top down, auditing workload distribution, training managers to recognise early signs of burnout, and building psychological safety at every reporting level.
How can employers spot presenteeism in remote or hybrid teams?
Leading virtual teams is a tough job. Spotting presenteeism remotely can actually be harder, as there’s no visible sign of someone struggling at their desk. However, employers should wisely watch for some clear indicators, such as a drop in output quality, longer hours logged without matching results, or delayed responses. When a team member is consistently attending meetings while visibly disengaged, it’s a sign of presenteeism. Regular but genuine check-ins from a trained manager can be one of the most reliable ways to catch it early.
Does returning to the office increase or reduce presenteeism?
Neither. Setting something automatically never fixes issues like presenteeism, as the behaviour follows workplace culture rather than physical location. While office-based teams may feel more visible pressure to “be seen,” remote teams may feel pressure to appear constantly online. In both cases, leadership is the deciding factor. It’s whether leadership actively models healthy boundaries and workload expectations.
Is presenteeism covered under workplace health and safety obligations in Australia?
Presenteeism isn’t a specific legal category. However, the underlying risks it creates certainly fall within an employer’s broader work health and safety responsibilities. The risks include burnout, fatigue-related errors, and psychological harm. This is one reason many Australian organisations are shifting focus from compliance-only well-being policies toward genuine leadership behaviour change.
