Valuation of Lost Productivity (VOLP)

Wei ZhangCentre for Health Evaluation & Outcome Sciences

SPPH, University of British Columbia

Labour input loss due to health

• Absenteeism– Absent workdays due to health

• Presenteeism– Reduced labour input (time) while working due

to health

• Employment status change– Reduced routine work hours due to health

– Unemployed (job loss) due to health

– Early retirement due to health

The corresponding output loss

• Team production

• Availability of substitute

• Compensation mechanism

• Time sensitivity

Team production

Team production

Availability of substitute

Availability of substitute

Compensation mechanism

Compensation mechanism

Time sensitivity

Absenteeism MultipliersJob type Observations MultipliersAuto service technicians 19 1.05Hotel maids 22 1.05Customer service reps 15 1.10Receptionists - MD office 16 1.10Waiters/waitresses 29 1.10Automobile sales 37 1.10MD office receptionists 16 1.10Cashiers 26 1.15Medical assistants 11 1.20Team assemblers 14 1.25Hotel desk clerks 18 1.25Legal secretaries 20 1.27Construction workders 21 1.35Cooks 19 1.36Truck drivers 41 1.50RNs 49 1.52LPNs 17 1.52Retail sales - department store 15 1.60Office clerks - auto or department store 27 1.89Paralegals 16 2.00Carpenters 11 2.00Engineers 25 2.04

Presenteeism MultipliersAcute Chronic Acute Chronic

Auto service technicians 1.00 1.00 1.46 1.54Hotel maids 1.00 1.00 1.47 1.47Customer service reps 1.00 1.00 1.14 1.76Receptionists - MD office 1.00 1.00 1.33 1.75Waiters/waitresses 1.00 1.00 1.83 1.57Automobile sales 1.00 1.00 1.55 1.31Cashiers 1.00 1.00 1.07 1.16Medical assistants 1.00 1.00 1.61 1.59Team assemblers 1.00 1.00 1.80 2.33Hotel desk clerks 1.00 1.00 1.71 1.63Legal secretaries 1.00 1.02 1.43 1.74Construction workders 1.00 1.00 1.81 2.66Cooks 1.00 1.00 1.23 1.62Truck drivers 1.00 1.00 1.66 2.11RNs 1.00 1.05 1.80 2.13LPNs 1.00 1.00 1.44 1.74Retail sales - department store 1.00 1.20 1.47 2.06Office clerks - department store 1.49 1.67 2.21 2.43Paralegals 1.60 2.42 2.24 3.03Carpenters 1.49 1.73 2.83 2.83Engineers 2.00 2.42 2.78 3.50

Y recaled: Y³ X Y rescaled w/90th percentile of (X-Y)

Productivity loss in the past 3 months (£)

314

218

462

517

631

289

0

100

200

300

400

500

600

700

Absenteeism Presenteeism (from direct hour estimates)

Conventional Published multipliers VOLP questions

Discussion

• Objective measures of labour input and output– Different industry types– Different occupations

• Perspectives for valuation– Society– Firm– Patient