Presenteeism—when employees are physically at work but not fully functioning due to illness, injury, or mental health challenges – remains a significant yet often overlooked drain on workplace productivity. It’s been estimated to be up to 10 times more costly than absenteeism¹, with some reports putting the total impact at over $34 billion annually². Mental health-related presenteeism alone costs Australian employers approximately $8.5 billion per year³.
“People generally want to do the right thing, but without the right support, returning too soon can impact both performance and wellbeing,” says Renee Thornton, occupational therapist and CEO of Rehab Management, a national workplace rehabilitation provider. “We see it time and again: presenteeism often leads to disengagement, re-injury or longer absences down the track.”
Michelle Barratt, Head of Innovation and Psychology Services at Rehab Management, emphasises that presenteeism can negatively interact with work environments that have high job demand/low control or a perceived effort-reward imbalance. “Workplaces that have longer hours, unpredictable shift work, and job insecurity can add fuel to the fire when it comes to employees experiencing presenteeism”, says Barratt.
“Managing your organisation’s psychosocial risks is a requirement, but the added benefit in taking action is that by creating a mentally healthy workplace, you are fostering an optimal work environment for the health and well-being of your people”, says Barratt.
Research shows that presenteeism is closely linked to low psychosocial safety climate (PSC)—work environments where employees don’t feel psychologically supported. Workers in low PSC workplaces take 43% more sick days and experience 72% higher performance loss, costing employers an average of $1,887 per employee each year⁴.
Thornton says presenteeism often goes unnoticed until it becomes a visible performance issue or results in a workers’ compensation claim.
“By the time someone is clearly struggling, it’s already late in the game. Acting early—before things escalate—makes all the difference.”
Presenteeism is also increasingly tied to outdated workplace norms—such as measuring productivity by visibility instead of outcomes. Data shows that 45% of managers identify keeping their teams motivated as their biggest productivity challenge, while 9 in 10 workers say feeling happy and engaged is the key driver of their productivity⁵.
“We’re seeing a shift,” Thornton says. “The most effective workplaces are moving away from performance that’s measured by how long someone sits at a desk, and towards a culture of psychological safety and recovery-focused reintegration.”
Rehab Management partners with employers across Australia to identify early warning signs and deliver proactive support through services such as fitness-for-duty assessments, confidential employee health checks, and health coaching. These interventions not only support individual recovery but also help reduce claims, lift morale, and foster a more sustainable workplace culture.
“Presenteeism is preventable. The businesses doing this well are those that act early, stay curious, and see recovery as a shared responsibility—not something the employee has to figure out alone. When people feel supported to return properly—not just quickly—you create a safer, more productive workplace for everyone.”
