The Business Response to HIV/AIDS: Impact and lesson learned

FIGURE 3 Impact of HIV/AIDS on a company

HIV/AIDS IN THE WORKPLACE

INCREASED
COSTS

DECLINING
PRODUCTIVITY

DECLINING PROFITS

A. Declining productivity
Declining levels of productivity lead to declining profits when production costs are not declining at an
equal or higher rate, as in the presence of HIV/AIDS. Additionally, with declining and fluctuating
productivity, the ability to meet supply demands from consumers and buyers (reliability) decreases. This
has impacts on the present and future reputation of the company and thus on future profitability. The
principal areas in which HIV/AIDS impacts on productivity are increased absenteeism and increased
organisational disruption.
i. Increased absenteeism
Increasing absenteeism is one of the primary drivers of rising visible costs and declining productivity in
businesses as a consequence of HIV/AIDS. This is affected through the disruption of the production
cycle, the under-utilisation of equipment and the use of temporary staff. Recent comparative studies of
East African businesses have shown that absenteeism accounts for between 25-54 percent of costs.4 This
can directly affect the quality of control of products and services, leading to reputation losses and
ultimately a reduction in customers.
The observed increase in absenteeism is a result of employees becoming ill due to HIV and its associated
opportunistic infections, the demands of caring for family members who are ill, and the need to attend
funerals. The level of impact varies according to the flexibility of production systems. But it also
depends on the real level of absenteeism determined by prevailing socio-cultural norms, quality and
quantity of health care provision and the general economic environment.

THE BUSINESS RESPONSE TO HIV/AIDS: Impact and lessons learned

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