Overview
Direct disability costs for employees are estimated at 4 to 6% of the average company's payroll. When the indirect costs of absenteeism, lost productivity, turnover, and replacement workers are included, the total cost of disability averages 12% of payroll representing a huge opportunity for effective absence management programs that reduce employer costs.
For U.S. employers, employee workplace stress costs more than $300 billion each year in health care and missed work. Employee replacement costs in the U.S. average $100,000 per employee.
US Employers spent $50.8 billion in 2003 on wage payments and medical care for workers hurt on the job. Of the 5 million American workers who experience a work-related injury or illness, approximately 35% lose time away from work. For employees who are off more than 12 weeks, more than 50% never return to work.
Often, issues that interfere with a normal recovery and return to work after an injury or illness are psychological or social in nature, rather than medical. Medical and business professionals often overlook the impact that these non-medical factors may have on the employee. Research has proven that the earlier the contact and effective absence management begins, the faster the employee returns to work.
