That bug that’s going around might be bugging your bottom line if you are a small business owner, according to a new survey from Pepperdine University, conducted in partnership with Dun & Bradstreet Credibility Corp. Smaller companies — those with revenues of less than $5 million — reported each sick employee cost them an average of $22,802. For larger companies, the average cost was $15,806.

1. 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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2. 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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3. 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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4. About the January 2013 Flu Survey
• 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
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5. Percentage Indicating “Yes” to “Is the flu
outbreak restricting…”
97%
91%
100%
80%
60%
40%
9%
20% 3%
0%
Growth opportunities for business Ability to hire new employees
Yes No
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6. Number of Employees Currently
Out With The Flu
450
400
350
300
250
200
150
100
50
0
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
66

7. Total Number of Employees Who Have Been
Out Sick With The Flu At Any Time
This Flu Season
300
250
200
150
100
50
0
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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8. 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
$5 million - $100 million 1.6 61
Percentage of Sick Employees Who Telecommuted
< $5 million 38.4 267
$5 million - $100 million 75.4 66
Percentage of Companies That Provided Flu Shots
< $5 million 20.7 569
$5 million - $100 million 29.7 81
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9. Average Number of Days People Don’t Report to
Work Because Of The Flu
300
250
200
150
100
50
0
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
99

10. Number of Employees Who Did Any
Telecommuting While They Were Sick
450
400
350
300
250
200
150
100
50
0
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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11. Average Number of Days People Telecommuted
While They Were Sick
400
350
300
250
200
150
100
50
0
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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12. Percentage of Respondents That Provided Flu
Shots To Employees In 2012
100%
77%
80%
60%
40%
20%
20%
2% 1%
0%
Yes - Free Yes - Discounted Yes - Full Price No
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13. Percentage of Employees That Received Flu
Shots In 2012
91.0%
100.0%
80.0%
50.0%
60.0%
40.0%
15.0%
20.0%
0.0%
1st quartile Median 3rd quartile
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14. Average Flu Outbreak Costs Per Firm
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$0 $1 - $500 $501 - $1,000 $1,001 - $5,000 $5,001 - $10,001 - $25,001 - More than
$10,000 $25,000 $50,000 $5,000,000
Whole sample 48% 12% 12% 15% 6% 3% 2% 1%
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15. Details About the Respondents
Geographic Location
0-1
2-3
4-5 ME
5 - 10 WA
11 - 20 ND MN VT NH
MT
21 - 30 OR MA
WI NY
41 - 50
ID SD MI RI
more than 50 CT
WY PA
IA OH NJ
NE MD
NV IL IN
WV VA
UT CO
KS MO KY
CA NC
TN
OK AR SC
AZ NM
MS AL GA
HI
AK LA
TX
FL
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16. Details About the Respondents
Industry
Services
2% 2% 1% Retail trade
2%4% 4% Construction
3% Finance & real estate
32%
7% Manufacturing
6% Information technology or services
Health care
9% 9% Wholesale trade
10% 9%
Unclassified establishments
Educational services
Arts, entertainment or recreation
Transportation and warehousing
Forestry, fishing, hunting or agriculture
Utilities & mining
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17. Details About the Respondents
Annual Revenues
$0 or pre-revenue stage
1% 1% 2% 2% $1 - $100,000
4% 4% $100,001 - $500,000
7% 21%
$500,001 - $1,000,000
20%
$1,000,001 - $5,000,000
24% $5,000,001 - $10,000,000
14%
$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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18. Details About the Respondents
Number of Employees
120
110
100
90
80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 - 15 16 - 20 21 - 30 31 - 40 41 - 50 51 - 101 - More
100 1000 than
1000
Whole sample 110 116 59 29 40 29 15 10 14 20 43 30 33 17 13 27 18 1
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19. Details About the Respondents
Firm age
Less than 1 year
5% 5% 4% At least 1 but less than 2
6%
11% At least 2 but less than 3
48%
21% At least 3 but less than 5
At least 5 but less than 10
At least 10 but less than 20
20 or more
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20. 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/.
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21. THANK YOU!
Craig Everett, Ph.D., MBA
Assistant Professor of Finance
Associate Director, Pepperdine Private Capital Markets Project
http://bschool.pepperdine.edu/privatecapital
craig.everett@pepperdine.edu
310.506.8543
John K. Paglia, Ph.D., CFA, CPA
Associate Professor of Finance
Director, Pepperdine Private Capital Markets Project
http://bschool.pepperdine.edu/privatecapital
john.paglia@pepperdine.edu
805.379.5809
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