The nasty flu season could cost U.S. businesses $15B in lost productivity

One month into the year, and workers across the nation are out sick.

It's flu season. And a nastier-than-usual outbreak is not only creating health problems for many Americans — burdening hospitals, nursing homes, and schools — it could take a $15.4 billion hit on U.S. businesses, according to a new estimate issued Friday.

Flu-related productivity losses are taking a toll. For instance, Signs Unleashed, as 17-employee, family-owned business in Bloomfield Hills, Mich., has had three people out sick.

That's a strain, especially when workers are ill for days, said company Vice President Nick Ryder. For every person who's out, that's more to do for employees who are working."It's a fine line," he said. "You want people to come in healthy, but everyone has to pull their own load.

"Influenza cases have risen sharply across the nation and remain widespread in 49 states, according to the Centers for Disease Control. The severe flu season is on track to equal the 2014-15 outbreak that caused an estimated 56,000 deaths, federal health officials said.

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This year, as an aggressive flu strain, H3N2, goes around and with the flu season yet to peak, employers and workers face a difficult dilemma: What do you do when folks just don't feel well?

Employees who work when they are sick only exacerbate the problem. 

"Its a challenge that all small businesses face — and large companies, too," said Ryder.

How big is the challenge? So big, that Challenger, Gray & Christmas, a prominent employment consulting firm, on Friday raised its earlier estimates by 64% estimating that the flu virus could cause more than 18 million U.S. employees to miss at least four, eight-hour shifts.

At an average hourly wage of $26.63, the firm said that represents at least $15.4 billion in lost productivity nationwide.

That's considerably higher than in 2014, when the consulting firm estimated total U.S. productivity losses due to illness at $7 billion.

"Sick workers may think they are doing the right thing by ‘toughing it out’ and coming into work when they feel ill,"  said company Vice President Andrew Challenger. However, "they are only likely to spread their illness, potentially further interrupting optimum business operations."

What can employers do? 

Sherri McDaniel, CEO of a Livonia, Mich.-based human resources consulting company, said only one employee at her firm has called in sick with the flu — so far.

"But I've worked for employers who are suffering from quite a bit more pain," she added. "As a (human resources) consultant, I go into multiple employers, and just about every one over the last three weeks has had individuals running around coughing, sneezing and looking very ill."

She said that in her view, this flu season has been especially difficult.

Among McDaniel's suggestions for companies: Invest in free flu shots for workers at the office, promote healthy employee lifestyles, encourage regular physician visits, limit meetings, swab shared work surfaces with alcohol wipes and tell sick people to stay home.

"Almost everything that we do today, we can do by phone and computer," McDaniel said. "As part of your preparation, what you can do for employees is encourage those projects that can be done at home by telecommuting."

Tips for employers

• Increase shifts to reduce the number of people working in the office at one time.

• Limit meetings by holding conference calls to prevent the spread of illnesses.

• Allow more telecommuting and employees to work from home.

• Allow sick workers to stay home without fear of losing their jobs.

• Institute flexible leave policies to allow parents to care for a sick child.

• Use no-touch trash cans, provide hand sanitizer and alcohol wipes.

• Encourage employees to frequently wash hands, avoid handshakes and even wear masks.

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com. Contributing: Aleanna Siacon, Brandon Patterson, Bill Laitner and Kevin McCoy, USA TODAY