H1N1 could cause ’severe work absenteeism’

October 15th, 2009, 6:00 am · 5 Comments · posted by Jan Norman, small-business columnist

If H1N1 - the so-called swine flu - is widespread this winter, many small businesses will be crippled by “severe absenteeism,” warns workplace authority John Challenger, chief executive of Challenger, Gray & Christmas, an outplacement consulting firm.

Making the problem worse, Challenger says, are several factors:

Many companies are operating at minimum staffing after layoffs
Many lack any emergency planning related to a big flu outbreak
Many have ineffective sick-leave policies.

“For an employer that has recently gone through a downsizing and already stretched thin in terms of staffing, 40 percent absenteeism in a given month could be devastating,” said Challenger.

Widespread problems aren’t out of the realm of possibility. There have been more than 9,000 confirmed cases of the H1N1 flu strain reported in the United States so far this year, according to the latest data from the Centers for Disease Control. The World Health Organization puts the number of 2009 cases worldwide at nearly 350,000, with at least 4,100 deaths resulting from the virus.

The U.S. Small Business Administration is certainly concerned about the potential impact. The agency along with Homeland Security are offering an H1N1 preparedness guide for small businesses.

Click here to download the free booklet.

“For countless small businesses, having even one or two employees out for a few days has the potential to negatively impct operations and their bottom line. A thoughtful plan will help keep employees and their families healthy, as well as protect small businesses and local economies,” said SBA Administrator Karen Mills.

A recent survey by the Harvard School of Public Health found that just one in three companies indicated that they could sustain their business with severe operational problems if half their workforce were absent for two weeks due to H1N1. Only one in five felt they could keep operations running if they were staffed at 50% for a month.

A recent poll by LogMeIn, Inc., a provider of remote computing devices, found that nearly 60% of small- to medium-size businesses do not have a business-continuity plan in place for a possible flu outbreak. A separate survey of 100 senior executives at private equity, hedge funds and other financial services companies conducted by Insite Security found that only 10% have plans to deal with the impact of H1N1 on their businesses.

“Beyond the impact on individual companies, there is the impact on the entire economy resulting from decreased tourism, trade and increased burden on the health care system,” said Challenger.

One recent example is the 2003 outbreak of SARS. It is estimated that the SARS outbreak – which infected just 8,000 people worldwide – cost the Chinese economy $18 billion, including a 65% drop in tourism and a 15% decline in retail sales. When the virus spread to Toronto , the Conference Board of Canada estimated that it cost the city $1 billion in lost gross domestic product.

Challenger has several suggestions for companies to protect workers if H1N1 is widespread:

Increase the number of shifts. This will reduce the number of people working in the office at one time.
Limit meetings. If there is no need to gather large groups of workers in a confined space then do not do it. Conduct meetings via conference calls. Bigger companies may want to consider video conferencing.
Expand telecommuting. Determine who can work from home or other locations. This will keep people off of public transportation and out of the office.
Allow sick workers to stay home without fear losing their jobs.
Institute flexible leave policies to allow parents to care for an ill child or one who is home due to school closures.
Provide no-touch trash cans and hand sanitizer.
Assign someone to the post of flu czar or workplace illness coordinator, who would be responsible for monitoring absenteeism rates, coordinating leave and informing employees of company measure to prevent and/or respond to outbreak.

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