Feeling the pinch - what does sickness cost the employer?
Take Home Messages:
Absence from work and disability are the cause of a significant portion of health-related costs for employers.
Why the research matters:
Healthcare and health-related costs are a significant source of burden for employers. Investigating these costs more thoroughly will enable employers to develop strategies for effectively reducing health costs.
What the research involved:
The study gathered data on 374,799 employees from six large employers in America from 1997-1999. This data was focused on:
- Workplace absences;
- Employee health; and
- Productivity.
This data was then analysed to identify the most costly physical and mental health conditions affecting American employers.
Summary of research findings:
The study found that:
- For physical health conditions, 29% of the health and productivity related expenses were due to absence and disability;
- For mental health conditions, 47% of the health and productivity related expenses were due to absence and for disability;
- Physical health conditions cost employers a total of $3524 in health and productivity expenditures per employee from 1997-1999; and
- Mental health conditions cost employers a total of $179 in health and productivity expenditures per employee from 1997-1999.
The top 5 most costly physical health conditions were:
-
Cardiovascular disease:
Angina pectoris (chest pain), essential hypertension (high blood pressure), and acute myocardial infarction (heart attack);
- Chronic obstructive pulmonary disease (chronic lung disease);
- Diabetes;
-
Musculoskeletal:
Mechanical low back pain and other back problems, trauma to spine and spinal cord; and
- Sinusitis, ear, nose and throat problems.
Original research:
The health and productivity cost burden of the "top 10" physical and mental health conditions affecting six large U.S. employers in 1999.
Goetzel RZ, Hawkins K, Ozminkowski RJ, Wang S.
J Occup Environ Med. 2003 Jan;45(1):5-14.