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Sick days cost U.S. companies billions of dollars each year. Here's how to reduce sick days and keep your employees well.
Employee health is a priority for team members and businesses alike. According to the Integrated Benefits Institute, workplace absenteeism costs U.S. employers nearly $600 billion annually due to reduced productivity. For a small company with 10 employees, even a modest reduction in sick days can translate to thousands of dollars in recovered productivity each year. Fortunately, a business can take concrete steps to improve employee health and reduce sick days, keeping operations moving steadily and providing an environment that fosters a healthy, energetic and engaged team.
Here are 10 ways businesses can take action to reduce employee sick days.
Many companies occasionally provide food for their employees to reward or motivate them. Often, these foods include pizza, doughnuts, ice cream or other unhealthy options. While treats have their place, providing healthy, well-balanced choices can give employees the fuel they need to perform at optimal levels at work and off the clock.
Encourage habitual healthy eating to benefit your employees’ long-term health. For example, provide creative perks like employee discounts at health food stores and restaurants and coupons for wellness products.
If you have room, turn an area of your workplace into an exercise space. You don’t have to offer anything extravagant to make a difference. Setting up basic exercise equipment — including workout mats, exercise balls and dumbbells — can encourage hard-working employees to take some time for themselves during their workday. Consider installing bike racks in your employee parking lot to inspire people to bike to work and install a shower in one of the bathrooms so they can refresh after a workout.
Anytime employees gather for a special meeting or company getaway, use the opportunity to encourage healthy living habits. Discuss improvements employees have made in their lives and celebrate their progress. For motivation, ask employees who have made positive changes in their lives to share their stories with co-workers. Consider hosting walking meetings, scheduling active team-building exercises or arranging retreats at venues that offer wellness activities.
Employer wellness programs help employees achieve health-related goals. Standard components include the following:
Typically, employers create the program based on their goals, employee input and budgetary constraints. Once the programs are created, leaders communicate the details to employees and may offer participation incentives.
Although wellness programs have benefits and risks — as well as costs — when done right, they can reduce absenteeism, boost employee morale and make an excellent additional employee benefit worth touting during the hiring process.
EAPs offer employees medical help and counseling when they are dealing with a stressful personal or family event, including financial hardship, severe medical problems, substance abuse and grief.
Employees can speak privately with a third-party EAP counselor who can offer advice, referrals and follow-up services to help them resolve their issues. EAPs address problems proactively that could result in productivity-killing workplace stress, health concerns, distractions at work and missed work days.
Medical professionals warn people about the dangers of sitting all day. But what can you do if your business requires employees to perform desk work?
One solution is to create an ergonomic workplace. The Occupational Safety and Health Administration (OSHA) noted that implementing ergonomic solutions can reduce musculoskeletal disorders. Providing employees with comfortable desk chairs with lumbar support, having standing or adjustable desks and using mouse pads with wrist support can decrease the incidence of back pain and wrist strain, including carpal tunnel syndrome. An ergonomic setup may even reduce your workers’ compensation costs.
Research shows that workers with flexible schedules report better employee wellbeing. Flexible benefits can include the following:
Flexibility can improve employees’ physical and mental health and reduce employee turnover.
When employees have high work demands and low job control, it hurts their mental health and reduces employee satisfaction. Allow employees to make more decisions without consulting a supervisor and empower them with more training and freer permissions. In addition to improving employee health, this flexibility can boost job performance.
Many businesses, including retailers, restaurants and other service businesses, have variable schedules for hourly employees. Employees never know which days and hours they’re working from one week to the next, making it extremely difficult to manage their personal lives, especially for employees with children.
Additionally, variable working hours make income unpredictable and can lead to financial insecurity. Workers with erratic schedules may suffer from poor sleep quality and emotional stress.
Giving workers a stable, predictable schedule benefits them and the company. A Stable Scheduling study found that when retailer Gap made this change, it experienced a 7 percent increase in sales and a 5 percent improvement in productivity.

Workplace absenteeism costs a business in several ways, including the following:
Combatting sick days and workplace absenteeism is crucial to ensuring your business operations run seamlessly. A healthier environment benefits your employees and your bottom line.
According to the CDC’s National Institute for Occupational Safety and Health, workplace environment factors significantly influence employee health outcomes through both physical and psychosocial pathways.
The physical environment refers to a workplace’s physical furnishings, lighting, noise level, air quality and food. While regulations that mandate specific safety requirements exist, such as Occupational Safety and Health Administration (OSHA) regulations, fire codes and local building codes, they primarily focus on known safety hazards. Improving employee health requires that businesses proactively provide a comfortable and healthy environment for workers, paying attention to the following:
Employees’ mental and emotional health is as crucial as their physical well-being. Pay attention to the following to help foster a happy and productive company culture in an optimal psychosocial environment:
Not everyone will respond to your health improvement efforts. Some will resist them completely, determined to stick to their old ways. Don’t expect everyone to conform, but don’t give up on your employees and their health because you encounter some initial resistance. Over time, sound health improvement policies will become more accepted and prove successful.
While many people resist change, they’ll be more accepting once they recognize the benefits of improved wellness. Here are some tips for implementing health and wellness programs at work: