Obesity's Impact on Workforce Productivity & Healthcare Costs

In addition to increases in medical spending, recent studies also show that obesity both interferes with employees’ productivity while at work and impacts the time spent away from work.  The term “presenteeism” is used to describe the lost productivity of employees who are at work but not performing to their full capacity.  Although presenteeism is a serious consequence of an obese workforce, absenteeism is just as significant a problem for employers.  The Texas Comptroller of Public Accounts recently published a study on obesity and the workforce (pdf), which estimates that nationwide absenteeism costs due to obesity amount to $4.3 billion annually.   

Employers have tools at their disposal to combat employee obesity.  Workplace wellness programs that provide employees with a cost incentive for maintaining a healthy lifestyle have had a positive return on investment.  In a review of approximately 42 different studies looking at wellness program outcomes, the Texas Comptroller of Public Accounts concluded that these programs can ultimately reduce health care and absenteeism costs by 25 to 30% within an average of 3.6 years.  The leaders of the Thomson Reuters study also suggest that employers provide health coaches and care managers for employees with chronic illnesses as a part of the wellness programs so that employees have additional resources and assistance with managing their health.  Additionally, the Occupational Health & Safety Administration recommends that employers try implementing low-cost environmental changes in the workplace, such as encouraging employees to use the stairs, o including healthy alternatives in vending machines and company cafeterias.  Providing information about the nutritional and calorie content of foods offered in company cafeterias is also helpful in educating employees about healthy food choices. 

Ultimately, recent studies demonstrate that when employers invest in the health of their employees now, they can expect increased productivity and lower health care costs in the long run.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.