The costs attributed to employee health problems are usually measured by em
ployers in terms of direct health care costs, such as medical plan claims.
Although it has been understood that employee health problems also produce
indirect costs for employers, their measurement has been far less frequent,
At best, studies have recorded one component of indirect health costs: the
time lost to employee absenteeism and disability. The study presented here
includes a measure of the actual decrease in the productivity of employees
while they are on the job, in addition to measures of absenteeism and disa
bility, These three measurements were combined to produce a Worker Producti
vity Index (WPI). The WPIs of 564 telephone customer-service agents were co
rrelated with the employees' number and type of health risks, as measured b
y a Health Risk Appraisal. Additionally, the WPI was also examined across d
ifferent disease states in the same population of employees. As the number
of health risks increased an employee's productivity decreased. The nature
of the health risk, may also differentially affect the pattern of the decre
ase. Finally, disease states were also associated with different patterns o
f productivity reduction.