16/04/2018 Worker Productivity Measures | Model | Workplace Health Promotion | CDC

Worker Productivity Measures

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 costs1
Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee
per year, or $225.8 billion annually2

These indirect costs affect all employers, even those who avoid direct medical costs by not funding health
insurance.

Example – Employee Health Concern: Obesity

The cost of obesity, including medical expenditures and absenteeism, for a company with 1,000
employees is estimated to be $277,000 per year3
Obese employees experience higher levels of absenteeism due to illness than normal weight
employees4
In comparison, overweight women miss 3.9 days, a 15% increase in missed days; obese women (BMI
greater than 30) miss 5.2 days, a 53% increase in missed days; and women with a BMI of 40 or higher
miss 8.2 days, a 141% increase in missed days, almost one week more of missed work each year than
normal-weight women5

Workplace health programs that improve employee health by reducing, preventing or controlling diseases
can affect worker productivity
Improvements in physical, mental, and emotional health enhance stamina, concentration, and focus leading
to greater work output
The cost savings of providing a workplace health program can be measured against:
Absenteeism among employees due to illness or injury
Reduced overtime to cover absent employees
Costs to train replacement employees

References

1.  Partnership for Prevention. Leading by Example: CEOs on the business case for worksite health
promotion. Washington, DC: 2005.

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