Exploring the relationship between presenteeism and organizational performance: The role of need for recovery, job satisfaction and organizational procedural justice.

Commonly defined as showing up for work while ill, presenteeism is attracting a growing attention, especially because it is assumed to cause much more organizational productivity loss than absenteeism (Johns, 2010). This study aims at exploring the detrimental effect of presenteeism on organizational performance by analyzing 1° the relationship between presenteeism and four objectives performance indicators measured at the business unit level, namely customer satisfaction, shrink reduction, absenteeism rate, and productivity; 2° the mediating role of need for recovery and job satisfaction in this relationship; and 3° the moderating role of organizational procedural justice as a resource that helps to reduce the negative effects of presenteeism on organisational outcomes. Data were collected in a large Belgian retailer at two levels: 415 employees from 21 stores were surveyed using self-reported scales while store-level key performance indicators were provided by sales, HR and accounting departments. Bootstrap regression analyses were conducted at the store level and showed that presenteeism is directly related to absenteeism rate, and is indirectly related to the other store performance indicators. In particular, presenteeism enhances employees’ need for recovery which in turn reduces customers’ satisfaction. Presenteeism also affects store shrink rate and productivity through decreased job satisfaction. Finally, personal management procedures perceived as unfair worsen the negative influence of employees’ presenteeism on their job satisfaction. While research has mainly focused on predictors of presenteeism, our findings contribute to a better understanding of the mechanisms whereby presenteeism deteriorates organizational performance.