Unhealthy Employees Cost Your Company a lot of Money

According to the comprehensive California study on Economic Costs of Physical Inactivity, Obesity and Overweight (2005), the incremental cost to the employer of a physically inactive worker is $2,400/year; and $3,270 for an obese worker.

Risk Factor Population	Incremental Incidence	Cost/Employee/Year*
Inactive	50%	$2,400
Obese**	17.5%	$3,270
Overweight	35%	$515

*Cost: Medical 50% / Productivity 50%
**Number of obese is growing at 4.5% per Year

The Real Cost of Being Out of Shape

Increased activity can solve workplace issues caused by inactivity and poor overall health:

• Physical inactivity results in the loss of 162 productive hours (approximately 20 days) per worker for an average statewide cost of $8.6 billion annually.1
• A recent study of 1.5 million adult health plan members found that total annual health plan expenditures attributable to physical inactivity were $83.6 million.2
• Indirect costs of poor health such as absenteeism, presenteeism, and disability may be 2 to 3 times higher than direct medical costs.3
• Employees with weight problems incur 36% higher annual health care costs for primary care visits and 105% higher pharmacy costs for managing chronic conditions caused by their weight (such as high blood pressure, high cholesterol, and diabetes).4

Source:

1. Chenoweth, David, DeJong, Glenna, Sheppard, Loridna, Lieber, Marilyn: “The Economic Cost of Physical Inactivity in Michigan.” (2003) Michigan Fitness Foundation. Page 2.
2. American Journal of Preventive Medicine, 2004 Nov;27(4): 304-9.).
3. Edington DW, Burton WN. Health and productivity. In: McCunney RJ: A Practical Approach to Occupational and Environmental Medicine. Philadelphia: Lippincott Williams & Wilkins. 3rd ed. 2003:140-152.
4. Thomas D, Brown JB, Nichols GA, Elmer PJ, Oster G. Body mass index and future healthcare costs: A retrospective cohort study. Obes Res. 2001:9:210-218.
5. Carels, R.A., Darby, L.A., Rydin, S., Douglass, O.M., Cacciapaglia, H.M., & O’Brien, W.H. (2005). The relationship between self monitoring, outcome expectancy, difficulties with eating and exercise, and physical activity and weight loss treatment outcomes. Annals of Behavioral Medicine, 30(3), p.182-90.
6. Gleeson-Kreig, J.M. (2006). Self-monitoring of Physical Activity: Effects on Self-Efficacy and Behavior in People with Type 2 Diabetes. The Diabetes Educator, 32(1), p.69-77.