Assessing the economic impact of sickness absence in Croatia before, during, and after the COVID-19 crisis: emphasis on the hospitality industry

Abstract

Purpose. This study aims to analyze and compare data on sickness absence in the EU and Croatia and to estimate the costs associated with sickness absence in Croatia, with a specific focus on the hospitality industry.
Design/methodology/approach. Utilizing the Human Capital Approach (HCA), we quantify the economic impact of sickness absenteeism before, during and after the COVID-19 crisis by calculating the monetary value of lost productivity due to employee absences caused by illness. Additionally, we conducted a comparison of the effects of sickness absence on Gross Value Added (GVA) between the hospitality industry and the overall Croatian economy.
Findings. The study found a significant increase in sickness absences and productivity losses due to sickness absenteeism in Croatia from 2018 to 2023, with peaks during the COVID-19 crisis (2020-2022), particularly in the hospitality industry. These results highlight the need for effective support mechanisms, for both policymakers and organizations, that can be adapted and applied to other sectors, in order to reduce absenteeism and its negative consequences.
Originality. This is the first known study of sickness absence that encompasses the extent of this behavior across the periods before, during, and after the COVID-19 crisis at a state level. No previous studies have been found that also focus on the post-COVID-19 period. The findings provide valuable insights for policymakers, and employers aiming to enhance productivity and absenteeism management.