Cost-Benefit Analysis on Flu Shots at Work

by mapgirl on November 13, 2008

I love my fellow blogpal, Ted of Rocket Jones. He left me this comment the other day. (Congratulate him too on his new granddaughter. She’s very sweet.)

What in the world makes you think that was free? The company paid for it, and the money they spent on it isn’t available for other purposes, like bonuses, raises, dividends, equipment upgrades…

The way I see it is this:
Flu shot: $25
Gas to get to get shot: $5
Time spent to get one off-site: 1-2 hours
Lost profit on one billable hour spent getting a shot: $100-150
Potential lost profit on billable hours spent being sick for 3 days: $2400+
Perception the company does something for me: High

So if I consider that I saved myself $30 on a flu shot and my company saved a potential $2400 in sick time, I think that paying for my flu shot was totally worth it for my company. And indirectly it will lead to things like a larger bonus pool, dividends, and upgrades. In fact, we announced increased dividends this year and some record revenue. I’m sure the earnings forecast for the upcoming year is down, but tell me, what stock isn’t forecasting low earnings in 2009?

So I think when you do the cost-benefit analysis to the company, it’s a big win for them and for me to have them bring two nurses on site site for 2 hours and stick everyone in the building.

Does anyone else think this way about free flu shots at work, or do they think it’s actually not free to me in the end?

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{ 4 comments… read them below or add one }

Ted November 13, 2008 at 10:55 am

I’d get one too, and I agree that it makes perfect sense for the company to offer them. I was just nit-picking the “free” part. ;)

Gramps are supposed to be cranky, eh? LOL

lulugal11 November 13, 2008 at 11:49 am

I agree with you on the CBA that it was free to you…and actually worth more to the company in potential savings for the future.

While it is true that the money would not be available for bonuses etc, think of how much of a bonus $25 times the number of people in the company would be.

Or really how many computers, paperclips etc they would really have bought if they chose not to pay for the flu shots on the premises. :-)

Tim November 13, 2008 at 8:09 pm

The flu shot is mostly alchemy and i struggle to remember a time when the viral strains have matched what was given in the flu shots. really, healthy adults don’t need it, but people in riskier groups should get it as a just in case the alchemists get the flu shot right.

Money Mama November 14, 2008 at 4:57 pm

Funny, I was at the doctor this week and he was trying to talk me into getting one. He said that companies do it for employees not to be nice but because they want their employee’s healthy so they will be at work and not sick at home. It is cost effective for your employer to give flu shots.

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