Jan
07
2015
The True Expense of Unhealthy Employees Featured
With the new year and open enrollment time for many employers, one of the most common concerns is, "What can we do to help control our healthcare expenses?" Do corporate wellness programs really work to save money, or are they just a nice benefit for employees?
For many employers, the concern of ever-increasing healthcare costs is real. In addition, employers want their employees to be happy and healthy. It seems obvious that unhealthy workers not only cost more from healthcare claims, but they also tend to be less productive. More sick days, longer breaks, slower to get things done- regardless of the specifics of their health conditions, unhealthy workers are less productive, and a potential drain on the company.
The question is how and where to invest in the health of your company. And you can’t afford to ignore an unhealthy workforce.
The CDC estimated the overall cost of obesity in US adults to be as high as $147 billion annually in 2008 (last year for which that data is available from the CDC). The average medical cost for someone who is obese is $1,429 a year higher than a normal weight peer. On top of that, obesity is linked to reduced worker productivity, chronic absence from work, and a slew of other chronic health conditions that can further exacerbate the issue.
In terms of absenteeism (days missed), presenteeism (lost productivity caused by poor health), and direct medical costs, the annual cost of a normal-weight employee: $10,000. Of their obese co-worker: $16,000. And contrary to some reports, there is no evidence that the rate of growthfor those classified as overweight or obese is slowing. So if up to 30% of your workforce falls into this category, how much can you save by fostering a healthy culture? But if you’ve read this far into this blog post, you are probably looking to invest in keeping your workforce healthy, because the cost of high employee turnover (lost productivity, overworked remaining staff, recruiting and interviewing costs, training expenses) is far from a cost-effective solution.
Incorporating a worksite wellness program that is led by professionals in that field (as opposed to giving that responsibility to someone currently on your staff), is an effective way to promote a culture of wellness and give your employees a sense of empowerment and accountability for their own health.
You think you can't afford it? Trust me, a good corporate wellness program will be significantly less than the extra $1,429 per year that you're already paying for your unhealthy employee.
Contact This email address is being protected from spambots. You need JavaScript enabled to view it. for more information on what you can do to help your employees and your company.
Sandy Greeson
Ergonomic Assessment Specialist, Essential Functions Evaluator, & Certifed Clinical Instructor
