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Are U.S. employers underestimating the costs of poor employee health?

Article Excerpt
Employers across the United States may not understand all the costs associated with poor employee health and may not be fully assessing the health conditions that drive these costs, according to a recent study that examines the link between employee health and productivity.

Looking at four U.S. companies, researchers found that lost productivity costs related to health were significantly greater than direct spending on medical costs, the traditional measure of health care spending. The study also found that when productivity costs were taken into account, health conditions such as musculoskeletal problems, depression, fatigue, and obesity took on new significance in driving costs upwards.

"Through the study we've been able to demonstrate the broader costs of poor health and conversely the business value of good health. Our multi-employer research was consistent with other published results revealing that the health-related productivity costs of workforce presenteeism and absenteeism are significantly more than just the medical/pharmacy costs related to poor health in the workforce,"...