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

USD 3.5 Bn (INR 24,000 Cr) worth productivity loss to IT sector in Bangalore due to health and lifestyle factors

Health and lifestyle habits of employee's results in productivity loss worth USD 3.5 Bn (INR 24,000 Cr) to IT sector in Bangalore every year, which is ~7% of the total revenue of IT sector in Bangalore (USD 50 Bn)

The cost to IT sector due to productivity loss is attributed to 5 key risk factors i.e. Physical Inactivity, Emotional & Mental Health, Physical Health, Poor Diet and Substance Abuse.
Physical Inactivity and Emotional & Mental Health contributes to ~50% of total cost due to productivity loss while Physical Health, Poor Diet and Substance Abuse contributes to another 50% of total cost due to productivity loss
'Physical Inactivity contributes to majority share of overall cost to IT industry resulting from productivity loss. We believe that there is an initial threshold among employees for physical activity and thus companies can partner with fitness players who can involve employees to reduce the threshold' says Ujjwal Chaudhry, Associate Director, RedSeer Consulting

Employees in the age group of 30-40 years of age contributes to highest share i.e. 42% of total cost to IT sector due to productivity loss However, employee in the age group of 30-40 years constitutes 35% of the workforce in IT sector in Bangalore, while employees in the age group of 20-30 years constitutes 50% of the workforce and contributes to ~30% of total cost due to productivity loss.

Also, employees in the age group of 30-40 years of age have higher share of loss due physical health and employees in the age group of 20-30 years of age have higher share of loss due to poor diet of employees
'The biggest finding of the report is contribution of ’emotional and mental health’ to the loss of productivity. We believe that companies should take initiatives to help employees reduce mental stress through specific programs which will reflect in higher productivity' says Ujjwal Chaudhry, Associate Director, RedSeer Consulting

Note: This is the first time that an agency has attempted to quantity the productivity loss due to health and lifestyle factors in India

Research Methodology- The above data is captured via RedSeer's Integrated Research Approach, which is based on 500+ employee surveys across 10 leading IT companies in Bangalore and 20,000+ data points