1.
The cost of being unhealthy
RedSeer perspective on productivity loss due to lifestyle choices.

2.
Overall Productivity Loss? 04
No. of Employee at Immediate Risk? 05
Share of Affected Employees 06
Key Risk Factors? 07
Most Affected Age Group? 08
Productivity Loss by Risk Factors to Age Groups? 09
% of Employees at Risk? 10
Risk Factors across Age Groups? 11
Methodology 12
Assessment Framework 14
Framework for Assessment of Cost 15
TABLE OF
CONTENTS
The cost of being unhealthy
RedSeer perspective on productivity
loss due to lifestyle choices.
3

3.
Overall
Productivity Loss?
Productivity loss due to health
and lifestyle habits of employees
cost ~INR 24,000 Cr every year
to IT industry in Bangalore…
Cost to IT industry in Bangalore due to Productivity Loss
No. of Employee at
Immediate Risk?
Almost 22% of the employees
in overall IT industry in
Bangalore are at immediate
risk of productivity loss due to
poor health and lifestyle…
Distribution of Health Score of Overall IT Industry in Bangalore
of overall employee in the
IT industry in Bangalore
are at immediate risk of
productivity loss due to poor
health and lifestyle
1. Health score is the weighted health score of employees on various risk factors i.e. Physical Inactivity, Emotional & Mental Health, Poor Diet, Physical Health and
Substance Abuse
2. Health score is defined on a scale of 1-5 wherein, 1 indicates worst health score and 5 indicates best health score
3. Employees with weighted health score less than or equal to 3 are considered as employees at risk of productivity loss
IT Industry in
Bangalore
1 2 3 4 5
1.5 2.5 3.5 4.5
7% of IT Revenue
in Bangalore
(USD 3.5 Bn)
Share of
Bangalore
in IT Revenue
Share
of other
cities in IT
Revenue
in India
IT Revenue
in India
Share of Bangalore
in IT Revenue
in India
Cost of IT Industry
in Bangalore due to
Productivity Loss
30%
70%
USD
165
Bn
INR 24,000 Cr
Loss annually
~22%
5
4

4.
Share of Affected
Employees
More than 80% of
employees are at risk on at
least one risk factor
% of Employee at Risk on various Risk Factors
Atleast
1 Risk Factor
Atleast
2 Risk Factor
Atleast
3 Risk Factor
Atleast
4 Risk Factor
Poor Diet,
Physical Inactivity,
Substance Abuse,
Emotional &
Mental Health and
Physical Health
are the 5 risk
factors
Key Risk Factors?
Physical inactivity and
emotional & mental health of
employees are major factors
for the cost to industry due to
productivity lost
Cost to IT Industry in Bangalore due to Productivity
Loss by Risk Factors (% of total cost)
% indicates share of various risk factors in overall cost to IT
industry in Bangalore due to productivity loss
% of employee at risk for a particular risk factor is calculated from total number of employee with score less than 3 for physical inactivity and Emotional &
Mental health, while less than or equal to 3 for poor diet and physical health and score less than or equal to 4 for Substance abuse
Physical
Inactivity
Overall Cost to
IT industry in
Bangalore due to
Productivity Loss
Physical
Inactivity
Physical
Health
Substance
Abuse
Poor
Diet
Emotional
and Mental
Health
25%
23%
21%
18%
13%
INR. 24,000 Cr
Loss annually
83%
50%
23%
8%
7
6

5.
Most Affected Age Group?
Mid-age group employees are contributing to major
share of cost to the industry
Cost to IT Industry in Bangalore due to Productivity
Loss by Age Groups (% of total cost)
Productivity Loss
by Risk Factors to
Age Groups?
Mid age employees has higher
contribution in productivity
loss due to physical inactivity
and physical, emotional &
mental health
20-30 years
40+ years
30-40 years
29%
29%
42%
• Employees in the age group of 30-40 years of age
constitute 35% of the total workforce in IT industry
and contributes to 42% of overall cost resulting from
productivity loss
• However, younger employees in the age group of 20-30
years of age constitute 50% of the total workforce and
contributes to ~29% of the cost due to lower billing
rates as compared to employees with higher experience
% of overall cost to IT industry in Bangalore due to various risk factors
% split of cost due to a particular risk factor across various age groups
Cost to IT Industry in Bangalore due to Productivity
Loss by Risk Factors and Age Groups
Physical
Inactivity
Emotional &
Mental Health
Physical
Health
Poor Diet Substance
Abuse
23% 26% 30% 30%
44% 41%
50% 33% 40%
33%
33%
33%
23%
20%
21%
29%
18%
30%
13%
20-30
years
30-40
years
40+
years
XX %
XX %
50%
38%
9
8

6.
Risk Factors across
Age Groups?
Younger professionals have
a higher risk from Poor Diet
while Mid-age group has a
higher risk from Physical
Health
While younger employees are
more prone to risk of productivity
loss due to poor diet and
substance abuse
Percentage of employees at risk
of productivity loss due to physical
inactivity and emotional health
increases with age
% of Employees
at Risk?
% of Employees at
Risk due to various
Risk Factors
% of Employee at Risk on various Risk Factors
Physical
Inactivity
Emotional &
Mental Health
Physical
Health
Poor Diet Substance
Abuse
83%
50%
59%
33%
40%
30%
54%
30%
39%
43%
30%
23% 23%
19%
35%
20%
16% 18%17%
69% 67%
8% 8% 8%
25%
Highest number of employees are at
risk of productivity loss due to physical
inactivity and emotional instability.
While these two risk may not result
in sick leave but it leads to loss of
productivity while at work
% of Employees at Risk due to various Risk Factors across Age Groups
Physical
Inactivity
Emotional &
Mental Health
Physical
Health
Poor Diet Substance
Abuse
20-30
years
30-40
years
40+
years
17%
XX%
XX%
XX%
62% 26%
35% 25% 17%
25%
26%
35%
62%
% Risk* employees – By Risk Factors
Average % of employee at risk at due
to various risk factors
Average % of employee at risk across
age groups due to various risk factors
Highest % of employee at risk for a particular risk factor
Least % of employee at risk for a particular risk factor
Industry average % of employee at risk for a particular risk factor
% of employee at risk for a particular risk factor is calculated from total number of employee with score less than 3 for physical inactivity and Emotional &
Mental health, while less than or equal to 3 for poor diet and physical health and score less than or equal to 4 for Substance abuse
* % of employee at risk for a particular risk factor is calculated from total number of employee with score less than 3 for physical inactivity and Emotional &
Mental health, while less than or equal to 3 for poor diet and physical health and score less than or equal to 4 for Substance abuse
11
10

7.
Methodology
RedSeer has interviewed
500+ employees across
10 IT companies in Bangalore
Total No. of Respondents interviewed: 500+
26%
18%
45%
37%
20-30 years
40+ years
30-40 years
74%
Male
Female
Split by Gender Split by Age Groups
13

8.
Assessment
Framework
Assessment of overall
health score of employee
due to combined effect of
various risk factors
Health Score Risk Factors Description Weightage
Overall Health
Score
Poor Diet Unhealthy eating habits such as eating too much junk
food and eating less of fruits
22%
Physical Inactivity Lack of regular physical activity such as exercise,
running, playing sports, walking etc.
22%
Emotional & Mental
Health
Lack of proper sleep and meditation resulting in
emotional and mental stress
22%
Physical Health Prevalence of lifestyle diseases and falling sick frequently 22%
Employees with weighted health
score less than or equal to 3 are
considered as employees at risk
Health score of employees have
been defined on a scale of 1-5
wherein, 1 indicates worst health
score and 5 indicates best health
score
Weighted average score of
employee across various risk
factors is calculated to assess the
overall health score of individual
employees
Secondary
Research Corporate
Interaction
Cost to organization due to following risk factors
Employee Survey
Employee Survey Secondary Research
Corporate Interaction
Framework for
Assessment of Cost
Assessment of cost
to company due to
productivity loss from
various risk factors
RedSeer has calculated the cost to organization for each risk factor taking
number of employees at risk due to particular risk factor and productivity
loss due to that risk factor
RedSeer has calculated the overall cost to organization by taking summation
of cost to organization due to various risk factors
Cost to
Organization
due to a
particular risk
factor
Overall Cost to
Organization
due to
productivity
loss
Number of
Employees
in the
Organization
Poor Diet
% of Employee
at risk due to
particular risk
factor
Physical
Inactivity
% of
productivity
loss due to
Absenteeism
and
Presenteeism
Emotional
& Mental
Health
Billing
Rate of
Employees
Substance
Abuse
Physical
Health
=
=
Σ
X X X
15
14

9.
Authors Disclaimer
Ujjwal is an Associate Director at RedSeer. He is a big believer in the power of
technology to disrupt the status quo. He specializes in due-diligences especially in the
consumer internet space. Prior to joining RedSeer, Ujjwal co-founded and exited a
healthcare start-up. He can be can reached at ujjwal@ redseerconsulting.com.
He is an IIT Delhi alumnus
Saurav is a Consultant with RedSeer and has 5+ years of experience in strategy
creation in retail, cpg and ecommerce. He has an extensive experience in Business
Consulting and has worked with brands and funds across the value chain.
He is an IIM Calcutta alumnus
Saurabh has 2.5+ years of experience in Consumer Internet, Retail, E-tailing Industry,
etc. and has worked with major E-tailing, VC and PE firms in the E-commerce industry.
He can be reached at Saurabh@redseer.com
He is an RTU Alumnus
Ujjwal Chaudhry
Associate Director
ujjwal@redseerconsulting.com
Saurav Kumar Chachan
Consultant
saurav@redseerconsulting.com
Saurabh Joshi
Business Analyst
saurabh@redseerconsulting.com
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16

10.
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