“Americans don’t leave their increasing waistlines at home; they bring them to work. And those extra pounds are having serious ramifications relating to health care costs, productivity and morale.” – Robert J. Grossman, HR Magazine, March 2004
The number of people in the American workforce may be shrinking but the size of the average American certainly is not. According to a 2005 study by Trust in America’s Health, almost 65% – or 119 million Americans – are either overweight or obese. This startling statistic, combined with the exponential increase in medical costs, means employers must find ways to address their employees’ health issues – or face some expensive consequences.
The Real Costs of Obesity
In the past, helping an overweight worker slim down was probably not an employer’s top-priority. However, recent research is beginning to change that mindset by showing the economic impact that obesity has on employee performance. The healthcare costs for obese employees, which includes medical insurance, hospitalization costs and physician visits are about 36% higher on average than those for their average-weight counterparts. For medication, costs are 77% higher.
Employers are all too aware of the escalating direct costs of healthcare. Yet, it’s the indirect costs that quietly but pervasively decrease company profit. Reduced productivity and increased absenteeism are not represented on the company balance sheet but financially impact revenue. In 2004, HR Magazine reported that obese individuals are twice as likely to be absent 14 or more times a year. When obese workers are not absent, they are not working to their full potential. Researchers estimate about 25% of obese employees under-perform due to obesity-related infirmities or conditions.
The good news is that employers are taking note of this phenomenon and consequently, taking action. About 80% of workplaces with over 50 employees provide some type of health-related initiatives and many are starting to address the issue of obesity. In addition, about 40-50% of large employers offer weight control assistance, often through a “Weight Watchers at Work”-type program. Some companies even offer to pay for gastric bypass surgery, for those employees who are at least 100 pounds overweight. Overall the approach is to improve employee loyalty by increasing overall quality of life for the workforce.
Unfortunately, most employee’s health programs are well-meaning but poorly planned and executed. According to a June 2006 report from the University of Minnesota, the results of these programs have not been as positive as studies documenting their impact suggest they should be. Perhaps the main reason for this is that employers do not market their health initiatives to the people who could benefit the most from them. For example, about 27% of employers offer discounted membership to local health clubs. This would be immensely valuable but is historically used most by employees who already exercise regularly.
Additionally, organizations continually make the mistake of incorporating initiatives that only address one specific health risk, such as high blood pressure. Providing free blood pressure screenings to employees may enhance their awareness of a possible problem. However, the risk assessment should be one small part of a comprehensive plan to reduce the employee’s health risks. Even a comprehensive plan will be unsuccessful if it is only implemented for a short-term period.
Below we have highlighted some Best Practices for designing and executing a successful employee’s health program.
Boosting Employees’ Health with Company Wellness Programs
Wellness programs that promote employee’s health are a critical part of talent retention. For more information about how to improving your workforce wellness and employee productivity, email requests@retensa.com.