May, 2019      |     By Abishek Chauhan, Ujjwal Chaudhry, Abhijit Routray, and Shashank Subramaniam

The cost of being unhealthy RedSeer perspective on productivity loss due to lifestyle choices.

Productivity loss due to the health and lifestyle habits of employees cost ~INR 24,000 Cr every year to the IT industry in Bangalore


Abhishek Chauhan

Abhishek Chauhan

Associate Partner

Ujjwal Chaudhry

Ujjwal Chaudhry

Director

Abhijit Routray

Abhijit Routray

Associate Consultant

Shashank Subramaniam

Shashank Subramaniam

Business Analyst

Overall Productivity Loss?

Productivity loss due to health and lifestyle habits of employees cost ~INR 24,000 Cr every year to IT industry in Bangalore…

Cost to IT industry in Bangalore due to Productivity Loss

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No. of Employee at Immediate Risk?

Almost 22% of the employees in overall IT industry in Bangalore are at immediate risk of productivity loss due to poor health and lifestyle…

Distribution of Health Score of Overall IT Industry in Bangalore

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Note(s):

  1. Health score is the weighted health score of employees on various risk factors i.e. Physical Inactivity, Emotional & Mental Health, Poor Diet, Physical Health and Substance Abuse
  2. Health score is defined on a scale of 1-5 wherein, 1 indicates worst health score and 5 indicates best health score
  3. Employees with weighted health score less than or equal to 3 are considered as employees at risk of productivity loss

Share of Affected Employees

More than 80% of employees are at risk on at least one risk factor

% of Employee at Risk on various Risk Factors

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Note(s):

% of employee at risk for a particular risk factor is calculated from total number of employee with score less than 3 for physical inactivity and Emotional & Mental health, while less than or equal to 3 for poor diet and physical health and score less than or equal to 4 for Substance abuse

Key Risk Factors?

Physical inactivity and emotional & mental health of employees are major factors for the cost to industry due to productivity lost

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Most Affected Age Group?

Mid-age group employees are contributing to major share of cost to the industry

Cost to IT Industry in Bangalore due to Productivity Loss by Age Groups (% of total cost)

  • Employees in the age group of 30-40 years of age constitute 35% of the total workforce in IT industry and contributes to 42% of overall cost resulting from productivity loss
  • However, younger employees in the age group of 20-30 years of age constitute 50% of the total workforce and contributes to ~29% of the cost due to lower billing rates as compared to employees with higher experience

Productivity Loss by Risk Factors to Age Groups?

Mid age employees has higher contribution in productivity loss due to physical inactivity and physical, emotional & mental health

Cost to IT Industry in Bangalore due to Productivity Loss by Risk Factors and Age Groups

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% of Employees at Risk?

% of Employee at Risk on various Risk Factors

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Note(s):

% of employee at risk for a particular risk factor is calculated from total number of employee with score less than 3 for physical inactivity and Emotional & Mental health, while less than or equal to 3 for poor diet and physical health and score less than or equal to 4 for Substance abuse

Risk Factors across Age Groups?

Younger professionals have a higher risk from Poor Diet while Mid-age group has a higher risk from Physical Health

% of Employees at Risk due to various Risk Factors across Age Groups

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Note(s):

* % of employee at risk for a particular risk factor is calculated from total number of employee with score less than 3 for physical inactivity and Emotional & Mental health, while less than or equal to 3 for poor diet and physical health and score less than or equal to 4 for Substance abuse

Methodology

RedSeer has interviewed 500+ employees across 10 IT companies in Bangalore

Total No. of Respondents interviewed: 500+

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Assessment Framework

Assessment of overall health score of employee due to combined effect of various risk factors

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Framework for Assessment of Cost

Assessment of cost to company due to productivity loss from various risk factors

RedSeer has calculated the cost to organization for each risk factor taking number of employees at risk due to particular risk factor and productivity loss due to that risk factor

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RedSeer has calculated the overall cost to organization by taking summation of cost to organization due to various risk factors

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