Private employers in the United States are spending up to US$45 billion a year on medical expenditures and work loss due to obesity, according to a report by The Conference Board. Obesity rates in the U.S. have doubled over the last 30 years, with a third of American adults now fitting the definition of “obese.”
The report, Weights and Measures: What Employers Should Know about Obesity, examines the financial and ethical questions about whether and how U.S. companies should address obesity.
“Employers need to realize that obesity is not solely a health and wellness issue,” says labour economist Linda Barrington, research director of The Conference Board management excellence program. “Employees’ obesity-related health problems in the United States are costing companies billions of dollars each year in medical coverage and absenteeism. Employers need to pay attention to their workers’ rights, for the good of the bottom line, as well as the good of the employees and of society.”
According to the report, obesity is linked to a 36% increase in spending on healthcare services, more than smoking or drinking. More than 40% of U.S. companies have already implemented obesity-reduction programs, and 24% plan to follow suit.
Return on investment estimates for wellness programs range from $0 to $5 per $1 invested and the report suggests the existence of such programs may help in attracting and retaining talent. Conversely, there are those who feel that cash rewards for weight loss are a more cost effective incentive for employees than devoting resources to long-term wellness plans.
The report says employers need to find a balanced approach between being too intrusive in managing obese employees versus the risks of not managing them. There is evidence that as weight goes up, wages go down, and employers need to be aware of any potential discrimination risk before addressing an employee’s weight.
As of yet there is no conclusive data on the cost effectiveness of company-sponsored weight loss surgery. While obese employees medically eligible for bariatric surgery (such as gastric bypass surgery) have sharply higher obesity-related medical costs and absenteeism, the likelihood of recouping the surgery costs before the employee leaves the company is unclear.
The report also suggests that how companies communicate a wellness program to their staff is as important as how well it is designed. Companies need to include employees in the planning of wellness programs and ensure their privacy is protected, as opposed to a top-down approach.
Check out our Health & Wellness Guide for ways to make your workplace healthier.
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