What is the Origin of Health-Adjusted Productivity?

This concept is an evolution of traditional productivity metrics, integrating epidemiological measures like Quality-Adjusted Life Years (QALY) with economic models of workforce performance. It arose from the necessity to quantify the hidden costs of presenteeism, which are often greater than the costs of absenteeism. The term fundamentally links physiological well-being to measurable economic output.

What is the Mechanism of Health-Adjusted Productivity?

The calculation mechanism involves assessing a baseline productivity score and applying a clinically derived adjustment factor based on objective health data, such as self-reported health-related quality of life, neurocognitive testing scores, and biomarkers of stress (e.g., cortisol). By addressing the root causes of sub-optimal health, such as correcting endocrine dysregulation, the adjustment factor is minimized, leading to a measurable increase in effective output and overall organizational efficiency.

Health-Adjusted Productivity ∞ Area

Health-Adjusted Productivity

Meaning

Health-Adjusted Productivity is a refined metric that calculates an employee’s effective work output by factoring in the decrement caused by their current health status, including presenteeism and sub-optimal functional capacity due to underlying physiological issues. This measurement acknowledges that mere physical presence does not equate to peak performance, especially when hormonal imbalances, chronic stress, or metabolic dysfunction are present. It provides a more accurate and clinically relevant valuation of human capital than simple attendance records.