Many employers are unaware of the linkages between health and productivity. While employers understand that investing in human capital improves the company bottom line, they are only beginning to understand the impact health has on worker productivity.
- In fact, indirect costs of poor health including absenteeism, disability, or reduced work output may be several times higher than direct medical costs17
- Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee per year, or $225.8 billion annually5
These indirect costs affect all employers, even those who avoid direct medical costs by not funding health insurance.
Example - Employee Health Concern: Obesity
- Obesity and related chronic diseases cost employers up to $93 billion per year in health insurance claims
- The cost of obesity, including medical expenditures and absenteeism, for a company with 1,000 employees is estimated to be $277,000 per year18