Pepperdine Flu Impact on Small and Medium-sized Businesses 2013

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Study of Flu Impacts on Small and Mid-

Sized Businesses (Winter 2012-2013)

Craig Everett, Ph.D., MBA

Assistant Professor of Finance

Associate Director, Pepperdine Private Capital Markets Project

John K. Paglia, Ph.D., CFA, CPA

Associate Professor of Finance

Director, Pepperdine Private Capital Markets Project

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This research was made possible with the support of Dun &

Bradstreet Credibility Corp., the leading provider of credit

building and credibility solutions for businesses.

DUN & BRADSTREET CREDIBILITY CORP.

Jeffrey Stibel, Chair and Chief Executive Officer

Judy Hackett, Chief Marketing Officer

Aaron Stibel, Senior Vice President, Technology

Erik Simon, Director, Marketing and Communications

Brenda Gary, Senior Marketing Director

Bernice Brennan, Manager, Creative Services & Marketing Communications

Trenice Taylor, Marketing Manager

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ACKNOWLEDGEMENTS

I’d also like to thank the following people at The Graziadio School

of Business and Management for their contributions:

Dean Linda Livingstone

Associate Dean David M. Smith

Mike Sims, Executive Officer, CER

Douglass Gore, Director of Public Relations

Mark Chun, Director, Center for Applied Research

Bill Bleuel, Professor of Decision Sciences

Irina Shaykhutdinova, Research Analyst

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• 14 questions

• Invite to participate distributed to sample from Dun

& Bradstreet Credibility Corp.’s business database

• 679 completed responses

• Responses collected from January 14 – January 27

About the January 2013 Flu Survey

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Percentage Indicating “Yes” to “Is the flu outbreak restricting…”

0%

20%

40%

60%

80%

100%

Growth opportunities for business Ability to hire new employees

9% 3%

91% 97%

Yes No

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Number of Employees Currently Out With The Flu

0

50

100

150

200

250

300

350

400

450

0 1 2 3 4 5 6 8 10 11 - 15 16 - 20 21 - 30 51 -100

Whole sample 445 84 47 17 6 7 1 1 1 3 1 1 1

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Total Number of Employees Who Have Been Out Sick With The Flu At Any Time

This Flu Season

0

50

100

150

200

250

300

0 1 2 3 4 5 6 7 8 9 10 11 - 15 16 - 20 21 - 30 31 - 40 51 -100 101 -1000

Whole sample 267 127 77 45 31 26 6 7 5 2 5 5 3 6 1 1 1

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Flu Survey Results By Revenue Size Sample Value # of Observations

Average Cost to Company Per Sick Employee

< $5 million $22,802 271

$5 million - $100 million $15,806 67

Average Number of Days Absent Per Sick Employee

< $5 million 7.4 275

$5 million - $100 million 3.6 69

Average Number of Days Telecommuting Per Sick

< $5 million 3.5 244


Percentage of Sick Employees Who Telecommuted

< $5 million 38.4 267


Percentage of Companies That Provided Flu Shots

< $5 million 20.7 569


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Average Number of Days People Don’t Report to Work Because Of The Flu

0

50

100

150

200

250

300

0 1 2 3 4 5 6 7 8 9 10 11 - 15 21 - 30 51 -100

Whole sample 272 33 97 102 28 40 8 16 5 2 4 5 2 1

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Number of Employees Who Did Any Telecommuting While They Were Sick

0

50

100

150

200

250

300

350

400

450

0 1 2 3 4 5 7 8 10 16 - 20 31 - 40 41 - 50 101 -1000

Whole sample 429 106 46 11 6 3 1 1 1 1 1 1 2

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Average Number of Days People Telecommuted While They Were Sick

0

50

100

150

200

250

300

350

400

0 1 2 3 4 5 7 10 11 - 15 21 - 30 101 - 1000

Whole sample 382 54 64 36 10 6 2 2 1 1 4

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Percentage of Respondents That Provided Flu Shots To Employees In 2012

0%

20%

40%

60%

80%

100%

Yes - Free Yes - Discounted Yes - Full Price No

20%

2% 1%

77%

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Percentage of Employees That Received Flu Shots In 2012

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

1st quartile Median 3rd quartile

15.0%

50.0%

91.0%

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Average Flu Outbreak Costs Per Firm

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0 $1 - $500 $501 - $1,000 $1,001 - $5,000 $5,001 -$10,000

$10,001 -$25,000

$25,001 -$50,000

More than$5,000,000

Whole sample 48% 12% 12% 15% 6% 3% 2% 1%

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Details About the Respondents Geographic Location

0 - 1

2 - 3

4 - 5

5 - 10

11 - 20

21 - 30

41 - 50

more than 50

CA

OR

WA

MT ND MN

IDWY

SD

NV

UT

AZ

CO

NM

TX

NE

KS

OK AR

LAMS AL

FL

GA

TNSC

NC

VAWVKYMO

IL

IA

WIMI

INOH

MD

PANJ

NY

ME

NHVT

MA

RICT

HIAK

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Details About the Respondents Industry

32%

9% 9% 10%

9%

6%

7%

3% 2% 4% 4% 2% 2% 1%

Services

Retail trade

Construction

Finance & real estate

Manufacturing

Information technology or services

Health care

Wholesale trade

Unclassified establishments

Educational services

Arts, entertainment or recreation

Transportation and warehousing

Forestry, fishing, hunting or agriculture

Utilities & mining

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Details About the Respondents Annual Revenues

4% 21%

24% 14%

20%

7% 4%

1% 1% 2% 2% $0 or pre-revenue stage

$1 - $100,000

$100,001 - $500,000

$500,001 - $1,000,000

$1,000,001 - $5,000,000

$5,000,001 - $10,000,000

$10,000,001 - $25,000,000

$25,000,001 - $50,000,000

$50,000,001 - $100,000,000

$100,000,001 - $500,000,000

More than $500,000,000

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Details About the Respondents Number of Employees

0

10

20

30

40

50

60

70

80

90

100

110

120

1 2 3 4 5 6 7 8 9 10 11 - 15 16 - 20 21 - 30 31 - 40 41 - 50 51 -100

101 -1000

Morethan1000

Whole sample 110 116 59 29 40 29 15 10 14 20 43 30 33 17 13 27 18 1

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Details About the Respondents Firm age

5% 5% 4% 6%

11%

21%

48%

Less than 1 year

At least 1 but less than 2





20 or more

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About Pepperdine Private Capital Markets Project

The Pepperdine Private Capital Markets Project at the Graziadio School of

Business and Management is the first simultaneous, comprehensive, and on-going

investigation of the major private capital market segments. The research seeks to

understand the true cost of private capital across market types and the investment

expectations of privately-held business owners; providing lenders, investors and

the businesses that depend on them with critical data to make optimal investment

and financing decisions, and better determine where the opportunities to create

lasting economic value may be realized. Download reports and find more

information at http://bschool.pepperdine.edu/privatecapital.

About Pepperdine University’s Graziadio School of Business and

Management

Founded on the core values of integrity, stewardship, courage, and compassion,

Pepperdine University’s Graziadio (GRAT-ZEE-ah-DEE-oh) School of Business

and Management has been developing values-centered leaders and advancing

responsible business practice since 1969. Student-focused, experience-driven, and

globally-oriented, the Graziadio School offers fully accredited top-ranked MBA,

Masters of Science, and bachelor’s completion business programs. More

information found at http://bschool.pepperdine.edu/newsroom/.

http://bschool.pepperdine.edu/privatecapital

http://cts.businesswire.com/ct/CT?id=smartlink&url=http://bschool.pepperdine.edu/newsroom/&esheet=6544224&lan=en-US&anchor=http://bschool.pepperdine.edu/newsroom/&index=3&md5=39dd118312a82e4088d3dd64d0036b08

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THANK YOU!

Craig Everett, Ph.D., MBA

Assistant Professor of Finance

Associate Director, Pepperdine Private Capital Markets Project


[email protected]

310.506.8543

John K. Paglia, Ph.D., CFA, CPA

Associate Professor of Finance

Director, Pepperdine Private Capital Markets Project


[email protected]

805.379.5809



mailto:[email protected]




Pepperdine Flu Impact on Small and Medium-sized Businesses 2013

Economy & Finance

Transcript of Pepperdine Flu Impact on Small and Medium-sized Businesses 2013