Note: This is an unedited Press Release from RedSeer
Bangalore, Dec 19th, 2018: – RedSeer Consulting, a research, and advisory firm focused on achieving excellence in the consumer-facing industry reveals that 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 the 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 the majority share of the 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 the highest share i.e. 42% of total cost to the 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 constitute 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 a higher share of loss due physical health and employees in the age group of 20-30 years of age have a higher share of loss due to a poor diet of employees.
“The biggest finding of the report is the 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.
Note: This is the first time that an agency has attempted to quantify 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.