Conference Board Reports That Obesity Costs U.S. Companies Billions
by Joan Trombetti, Writer | April 09, 2008
Obesity is costly for employers
In a new report, "Weights and Measures: What Employers Should Know about Obesity, The Conference Board estimated that approximately 34 percent of American adults fit the definition of "obese." The report studies the financial and ethical questions surrounding whether and how U.S. companies should address the obesity epidemic.
Other findings from the report include obesity is associated with a 36-percent increase in spending on healthcare services, more than smoking or problem drinking and more than 40 percent of U.S. companies have implemented obesity-reduction programs and 24 percent plan to do so in 2008.
The report also suggested that employers should be fully aware of any potential discrimination risk before addressing employees' weight, whether for the employees' own good or that of the company. It also found that the jury is still out on the costs and benefits of paying for employees' weight-loss surgeries, because while obese employees are medically eligible for bariatric surgery, some say companies are not likely to recoup medical costs before these employees leave for other jobs.
Included in the report are three case studies including Public Service Enterprise Group (PSEG), a large self-insured utility with high BMI and lower turnover that targets obesity as a major plank in its multifaceted wellness initiatives; H-E.B, a Texas-based retail chain that believes retail's high turnover can make it all the more important to catch employees, from checkout clerks to executives, under the wellness umbrella; and Aetna Inc., a company that believes adding incentives increased participation in its wellness programs and produced major savings.
The Conference Board
The Conference Board creates and disseminates knowledge about management and the marketplace to help businesses strengthen their performance and better serve society. Working as a global, independent membership organization in the public interest, The Conference Board conducts research, convenes conferences, makes forecasts, assesses trends, publishes information and analysis, and brings executives together to learn from one another. The Conference Board is a not-for-profit organization and holds 501(c)(3) tax-exempt status in the United States. For more information, go to conference-board.org.
Other findings from the report include obesity is associated with a 36-percent increase in spending on healthcare services, more than smoking or problem drinking and more than 40 percent of U.S. companies have implemented obesity-reduction programs and 24 percent plan to do so in 2008.
The report also suggested that employers should be fully aware of any potential discrimination risk before addressing employees' weight, whether for the employees' own good or that of the company. It also found that the jury is still out on the costs and benefits of paying for employees' weight-loss surgeries, because while obese employees are medically eligible for bariatric surgery, some say companies are not likely to recoup medical costs before these employees leave for other jobs.
Included in the report are three case studies including Public Service Enterprise Group (PSEG), a large self-insured utility with high BMI and lower turnover that targets obesity as a major plank in its multifaceted wellness initiatives; H-E.B, a Texas-based retail chain that believes retail's high turnover can make it all the more important to catch employees, from checkout clerks to executives, under the wellness umbrella; and Aetna Inc., a company that believes adding incentives increased participation in its wellness programs and produced major savings.
The Conference Board
The Conference Board creates and disseminates knowledge about management and the marketplace to help businesses strengthen their performance and better serve society. Working as a global, independent membership organization in the public interest, The Conference Board conducts research, convenes conferences, makes forecasts, assesses trends, publishes information and analysis, and brings executives together to learn from one another. The Conference Board is a not-for-profit organization and holds 501(c)(3) tax-exempt status in the United States. For more information, go to conference-board.org.
