Cancer and productivity loss in the Irish economy: an employer's perspective
INTRODUCTIONCancer is a leading cause of death internationally and is the second leading cause of death in Ireland after cardiovascular diseases, a pattern commonly seen in developed countries (WHO, 2008). Specifically, in Ireland cancer deaths represented 30% of all deaths in 2010 amounting to an average of over 8,000 deaths annually (NCRI, 2013a). The consequences of cancer-related mortality are tragic on a personal level for those affected, but beyond this there are also implications for public health, the economy and society in general. This study focuses on one aspect of cancer, namely the costs this disease impose on employees and employers from an economic perspective (Hanley and Sharp, 2012;Oliva et al., 2005).When an employed individual is diagnosed with cancer, a short-or long-term absence from work normally ensues due to treatment, related side effects or rehabilitation (Bradley et al., 2006;Mehnert, 2011;Mehnert et al., 2013;Sharp and Timmons, 2011). A proportion of patients with cancer also leave the workforce permanently either due to retirement or death. It is the latter of these -specifically cancer-related premature mortality -that constitutes the focus of this study. Premature mortality results in firm turnover which, in turn, constitute direct and indirect economic losses to the employer. The former arise because of the need to fund such things as separation, replacement and training (Tziner and Birati, 1996) and the latter from lost productivity itself. Specifically, the investment that the employer made in the employee is lost if they leave the workforce due to cancer, and this creates a quantifiable cost.A number of distinct models exist for calculating the costs of turnover in the workforce (Cascio, 1991;Karsan, 2007;Tziner and Birati, 1996); however, these tend to follow general accounting approaches rather than applying economic costing techniques. Where economic costing techniques have been applied, the majority of studies have adopted the human capital approach (HCA) to productivity cost estimation, which measures potential output lost due to absenteeism and turnover rather than actual output loss. More recent conceptual developments have
Abstract:The extant literature suggests that cancer-related premature mortality costs have increased over time and are projected to increase further. Previous studies have generally employed a societal rather than an employer-based costing framework. A question therefore remains over the magnitude of productivity costs associated with premature death from cancer from an employer perspective. The objective of this study was to measure the productivity costs associated with cancer-related premature mortality in Ireland using the employer-focussed friction-cost approach (FCA). This entailed the application of an involuntary turnover costing framework rarely used in the management literature and represents the first estimate of its kind in Ireland. The all-cancer premature morta...