Extra pounds on your employees may be eating into your bottom line. Obesity costs U.S. employers an estimated $45 billion every year in medical costs and work loss, according to a recent report by The Conference Board.
The report, “Weights and Measures: What Employers Should Know about Obesity,” examines a number of issues related to obesity in the workplace, including some financial and ethical questions about how U.S. companies should tackle the issue.
According to the report:
- An estimated 34 percent of U.S. adults are considered obese.
- Obesity accounts for a 36 percent increase in spending on health care services – representing a greater draw on the bottom line than smoking or problem drinking.
- More than 40 percent of U.S. companies have launched programs to encourage employee weight reduction, and 24 percent more said they plan to implement such a program this year.
- According to some estimates, the return on investment for wellness programs ranges from zero to $5 for every $1 invested. Based on research, these programs also play a key role in recruiting and retaining top talent.
- Evidence shows that as employees' weight goes up, wages tend to go down.
- The costs and benefits of paying for employees' weight-loss surgeries are mixed. While obese employees (about 9 percent of the workforce) have significantly higher weight-related medical costs and absenteeism, some say companies are unlikely to recoup costs of the surgery before employees leave for other jobs.
To read more about the report, click here.
Written by Jenny Cromie, certified human resources specialist (CHRS)
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