Workplace Fitness Center : Impacts Of Employee Wellness On Employers

Kyrillos, J. (2014) Obesity in America, A Growing Epidemic. Workplace Strategies and Solutions. Health Advocate.

An employee can help reduce the cost of health cost by doing several things. There has been an outcry from organizations due to the rising number of competitors with high expenses catering for health benefits during employment periods and on retiring. The employee can be of great help by being participative in the programs set by their employers to benefit more from other advantages far from health costs (Kerzner, 2013). Some of the choices an employee may consider to help control health costs are by boosting consumerism, use technology to manage benefits, and indulge in fitness and health programs.

The intent of this paper is to explore the correlation between obesity and increased cost to companies for their healthcare coverage of all employees. Our hypothesis is that obesity is increasing the cost of healthcare company wide due to obesity and the diseased associated with this epidemic. Our null hypothesis is that the effects and treatment of obesity is not having a direct impact on the total healthcare cost of organizations.

Hyman also shares that although food may seem cheaper at the time it really isn’t in the long run. You have to consider absences from work for doctor’s appointments, higher co pays, medications for diabetes or cholesterol, and may be even costing your employer for keeping you around since 7% of obese populations are less productive.

The Affordable Care Act was passed in 2010 to make sure that most people had medical insurance. With this new healthcare system came the responsibility that individuals would have to take initiatives to try to stay or get healthy. The preventative care portion included in the Affordable Car Act is a big item and very important in health care reform and very positive for the American people. Wellness in the workplace has become a very important issue to help reduce companies medical cost, and to help employees get on track to know their numbers, get healthy, and have a positive healthy mental attitude. Many employees do not understand or know how to get healthy and live a healthy lifestyle. With the rising cost of healthcare relating to

Obesity has caused our nation an abundant loss in productivity in businesses due to mental or physical issues causing an obstacle to efficiency while active in the work place. The total loss production time is at 11.7 billion dollars per year. According to Shell Oil Company, 11.2 million dollars were lost because of absenteeism related to obesity. Annual productivity loss is between 3.38 and 6.38 billion dollars. When obese, there is a major increase in disability payments and disability insurance premium costs. This produces higher fiscal costs to the federal government. Obesity alone charges our country and businesses billions and billions of dollars each year just from being absent from work or being present, yet not productive

The Centers of Disease Control and Prevention claims that “obesity related medical care cost in the United States are at an all time high, and in 2008 dollars, these cost were estimated to be 147 billion. The annual nationwide productive costs of obesity-related absenteeism range between $3.38 billion ($79 per obese individual) and $6.38 billion ($132 per obese individual),” according to the Centers of Disease Control and Prevention. An analysis conducted by Emory University own healthcare economist Ken Thorpe, Ph.D. C, titled “The Future Cost of Obesity” estimates that the annual of cost of health care will sky rock by an estimated 344 billion dollars by 2018 or about $20.00 per every healthcare dollar spent in the U.S, providing a financial imperative for obesity prevention initiatives.

Over the previous decades, obesity has developed into a major global epidemic. In the United States, more than two-thirds of adults are overweight and one-third is obese. Research to date has accepted at least four main groups of economic influence linked with the obesity epidemic. Direct medical costs, productivity costs, transportation costs, and human capital costs are all prime examples. Although more complete analysis of costs is needed, large economic influences of obesity are identified in all four categories by existing research.

Increasingly high obesity rates among the U.S. population have both personal and societal ramifications. For the individual, increased body mass has been linked to a myriad of health issues including heart disease, Type II diabetes, high cholesterol, cancer, strokes, kidney & liver disease, and hypertension. (Wilmore, et al., 2008) On a societal level, the Center for Disease Control estimates that obesity related medical care costs reached a staggering $147 billion in 2008 with obese patients costing $1,400 more per patient than those that fell into a "normal" weight rage (CDC). Obesity-related diseases may also contribute to millions of lost workdays and higher insurance premiums (CNBC).

In the vending machines all sorts of dried nuts and fruits can be found. For those employees who would like to lose weight, the company offers to pay the membership fee for the gym. With these type of helpful gestures employees will certainly stay healthy. “Companies are expected to spend an estimated $7,720 per employee this estimate is up from the $7,211 a few years ago according to NBGH. With health-care costs expected to continue to rise and cash-strapped employees less able to shoulder more premium increases, employers face a dilemma.”(Marshall P.53)

This will allow for increased spending in other areas of our company, creating a more productive budget. In addition, participation in the Wellness Program will provide employees that are able to work more often and more efficiently. This will undoubtedly increase productivity and decrease turnover. With 39,000 employees in the United States and 30 foreign nations, it is imperative that we maintain healthy and productive employees. Because of these significant benefits, it is crucial that we maintain and improve participation in the program. However, there are several concerns that may hinder such participation: 1. Despite Whirlpool’s guarantee of confidentiality, many employees do not trust the company with such private information. a. Employees have expressed their fear in the use of the information. They are concerned that their health status may negatively affect their position in the company. b. Although it is assured that no records are kept, employees fear the leak of private health information to their peers. If information was leaked, they fear the effects on their reputation and social standing within the company. 2. In order for the new addition to our program to be successful, it is important that we stress the benefits to our current employees. a. If our employees do not

America has a bleak outlook towards the costs associated with employee turnover, productivity decline, and increased employee healthcare costs due to chronic health care conditions. The cost of healthcare is increasing, and employers typically bear the brunt of these costs. Employers also face financial loss in regards to productivity decline and retention. In a Rand report, commissioned by the U.S. Government and compiled, by Matke and others, showed that the cumulative losses of all three domains associated with chronic

Setting the stage for starting a workplace-based wellness program will be the most difficult part. The program can be achieved by getting upper management support and forming a wellness/health services unit to help plan, promote, implement and maintain the program.

Health and wellness in the workplace is crucial to business success. Increasingly, it is recognized that the workplace itself has a powerful affect on people’s health. When people are satisfied with their job, they are more productive and tend to be healthier. When employees feel that the environment at work is negative, they feel stressed. Stress has a large impact on employee mental and physical health, and in turn, on productivity. Companies that promote healthy lifestyle habits for employees to improve their health, often take the success of the company to heart and are likely to be absent less often for health related reasons.

In the article, there are six options what company can do to help their employees to stay healthy and at the same time cut their costs.