Obesity and excess weight isn't just affecting society, it's affecting businesses.
As time progresses onward, the paradox deepens. Despite remarkable medical, scientific, and technological strides, societal health is struggling. The United States, in particular, faces a huge challenge: according to CDC data, 42% of the population is expected to be obese by 2030.
Obesity and chronic health struggles aren’t solely personal struggles; they pose far-reaching societal and economic implications. A recent report from the World Obesity Federation paints a troubling picture: by 2035, over half of the global population is expected to either be overweight or obese, with the economic toll surpassing $4 trillion, nearly 3% of the worldwide GDP. These figures further underscore the urgent need for action, especially for CEOs.
The Economic Impact on Businesses
In 2023 alone, the economic toll of obesity and excess weight on U.S. businesses and employers amounted to a staggering $425.5 billion, as revealed by GlobalData’s report, “Assessing the Economic Impact of Obesity on Employers: Identifying Paths Toward Work Force Health and Well-Being.”
Perhaps surprising to a few, a significant portion of these costs weren’t from direct medical, disability, and worker compensation costs. Instead, a substantial portion of the expenses stemmed from presenteeism. Not as frequently discussed, presenteeism, costing $160.3 billion, where employees show up for work but perform well below their capacity for many reasons, far exceeds absenteeism ($82.3 billion). Presenteeism costs businesses, on average, 10 times more compared to absenteeism.
The annual economic cost per obese worker was $6,472, while for those with excess weight was $1,244. For every 10,000 employees, the cost to employers and employees of obesity and excess weight ranges from $19.4 million in the professional & business services sector to $36.7 million in the government sector. The current model and approach to employee well-being is falling short, mainly due to a failure to adopt one crucial habit:
Thinking in Systems
The standard, run-of-the-mill approach to addressing obesity and related health issues in the workplace often falls short due to its narrow focus on individual behaviors. CEOs and decision-makers must embrace a systemic mindset to institute meaningful change, recognizing the multifaceted, interconnected factors influencing employee health.
For example, workplace stress, mental health, and financial well-being are closely intertwined. Finances at 73%, as opposed to work itself at 49%, was the number one cause of stress and anxiety for employees, according to Purdue University. Unmitigated and chronic stress can affect every system in our body, including suppressing our immune system and increasing the risk of coronary disease.
Businesses must implement comprehensive wellness programs that address these multifactorial root causes. This approach entails cultivating a supportive work culture that prioritizes work-life harmony, offering resources for stress management, financial wellness education, various mental health tools and support, eliminating barriers to quality weight management care, and providing environments conducive to healthier choices.
The economic toll of obesity on businesses and society at large is undeniable. However, even minor improvements in employee well-being can offer significant benefits. For example, as shared in the GlobalData report, a mere 5% weight loss could lead to 22% of workers with obesity no longer meeting the criteria for obesity.
With all this said, this isn’t just about improving the bottom line: it’s about fulfilling an obligation as a leader to empower and position your employees to show up as the best version of themselves, professionally and personally.
