Obesity Cost Calculator

Estimating the Impact of Obesity on Industry

There is a strong correlation between the physical health of your employees and the financial health of your company. Obesity leads to lost production, greater absenteeism, higher worker’s compensation costs, higher insurance premiums, and so forth. And here’s a disturbing fact: Americans are getting heavier every day. A recent analysis of our industrial database consisting of over 80,000 workers shows that the “normal weight individual” made up about 33% of the workforce in 2000 and only 24% in 2005. The trend analysis predicts that by 2010, that number will drop to just 16%.

The bottom line? You will almost certainly be hiring more overweight associates—men and women with more medical demands and higher costs—in the future. This does not bode well for your economic picture.

Find Out What Obesity Is Costing Your Company

If you know the number of associates employed by your company, you can easily calculate the impact obesity is having on your bottom line. Research has shown that obese individuals add $1,492 to a company’s healthcare expenses each year in 2005. Research published in the Journal of Occupational Medicine in December 2005 shows that the obese worker cost a copy an additional $377 per year in lost productivity time.

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Based on the IPCS analysis, it is possible for you to estimate what your company paid in 2000, 2005 and projected for 2010 in additional costs related to obesity. The trend analysis clearly shows that the normal weight individuals are becoming overweight and obese at an alarming rate. This is reflective in the projected cost in 2010. When entering the number of employees, the direct costs are computed. To estimate the indirect costs (equipment replacement, retraining and so on) caused by obesity, merely indicate the estimated indirect multiple and the calculation will be done. Indirect costs are normally estimated to be 1 to 20 times direct costs.