8 reasons why investing in employee health is good for people and business

A staggering five million adult deaths each year can be attributed to non-communicable diseases caused by obesity.

In the UK, the cost of obesity and overweight is estimated at $128 million a year, or 4% of gross domestic product (GDP), while globally, $2.2 trillion could be saved annually if overweight and obesity rates were maintained at 2019 levels.

It’s a complex issue with no simple solutions. But workplaces are one area where more could be done to foster healthy lifestyles for employees, says a new report from the World Economic Forum.

“The global burden of obesity and cardiometabolic diseases has reached unprecedented levels, posing significant challenges to public health, societies and economies worldwide,” say the authors of Promoting Health and Well-Being: Employer Strategies for Encouraging Healthy Weight and Metabolic Wellness.

The latest World Obesity Atlas report agrees: “Today, no country in the world is on track to reach the target to ‘halt the rise’ of obesity prevalence by 2030, as set in 2013 by the World Health Organization and approved by all governments”.

The Promoting Health and Wellbeing report calls for a “whole-of-society approach”, and outlines steps businesses can take to encourage a healthier workforce.

There are four established and emerging pathways to foster a healthy workforce, according to the Forum’s report:

1. Occupational health – this is already standard in organizations and is about promoting “the highest degree of physical, mental and social well-being of workers in all occupations”.

2. Well-being programmes – widely established, they generally encourage a healthy lifestyle via physical activities and good nutrition.

3. Physical health and outcomes programmes – emerging as a trend in global companies, these include health check-ups as well as integration of health goals into the fabric of the business.

4. Targeted interventions – primarily adopted in large companies with employer-insured healthcare systems, this is a more direct approach to addressing weight and metabolic health issues.

While it’s not a strategy, peer pressure can also prove effective, according to a European study. An examination of data on over 4,000 staff members in more than 100 organizations found that employees are significantly influenced by their colleagues’ (un)healthy habits.

“We found that employees were more likely to eat fruit and vegetables as well as engage in physical activity when their colleagues encourage a healthy lifestyle,” said Anne van der Put and Lea Ellwardt in BMC Public Health.

A healthier workforce is a good thing. The Forum report drills down to identify eight specific ways both people and businesses can benefit from successful employee health initiatives. They are:

1. A reduction of indirect costs by increasing productivity, and reducing presenteeism and absenteeism.

2. Improved employee engagement and satisfaction. Workplace interventions that target fitness have been shown to increase employee well-being.

3. Increased talent retention and attraction. Companies that disclose work-life balance practices, such as flexible working and well-being programmes, are more likely to attract Millennial and Gen Z talent.

4. Improved overall employee health and quality of life.

5. A reduction in direct medical costs. US employers spent $90 billion in 2023 on healthcare related to overweight and obesity, but a study on an intensive lifestyle intervention programme found that over a three-year period, employees experienced a 12% reduction in medical expenditure.

6. Improved employer differentiation, positioning and competitiveness. Creating a competitive advantage and matching up with employee interests are, together with health cost management, the top reasons to invest in employee health programmes.

7. Enhanced company reputation. A self-reinforcing cycle can emerge where, as a company better meets employee expectations through health programs, its reputation and productivity both increase. As its reputation grows, productivity continues to rise.

8. Alignment with company culture. Organizations that value people recognize that health investments provide more than just financial benefits, leading to a positive “cultural return” that contributes to overall company performance.

The imperative is therefore on employers to invest time and money into workplace health initiatives. To encourage them, the Forum report suggests governments adopt incentive strategies such as financial subsidies, public recognition of companies promoting employee health, as well as regulatory standards to meet key health benchmarks.

The Forum’s Healthy Workforces initiative aims to improve the health and well-being of employees by promoting preventative health in the workplace. “We collaborate with leaders across the public and private sectors, academia and civil society to increase awareness, share leading global insights and bolster the case for increased investment in workforce well-being.”