A universal epidemic of chronic disease will need to be tackled immediately or businesses will face increased health and labour costs, writes Theresa Judge
A WORLDWIDE epidemic of chronic disease means businesses will have to play a greater role in trying to improve the health of their employees, according to new research produced for the World Economic Forum.
It warns that over the next 25 years, chronic conditions such as cardiovascular disease, diabetes and respiratory illness will reduce available labour supply, savings and investments. The report stresses the need for companies to make the health of employees a core objective.
The report Working Toward Wellness: The Business Rationale was prepared by PricewaterhouseCoopers (PwC) in conjunction with the World Economic Forum.
Dr Donal Landers, a medical doctor who works with PwC in Ireland advising firms on measures that can be taken to improve employees' health, says many businesses may not be aware of the full impact of chronic disease.
He stresses that many chronic conditions are modifiable or preventable. Many conditions associated with chronic disease are caused by poor diet, lack of exercise, smoking, and alcohol.
"Many businesses may not realise how much the problem is affecting them, but up to 60 per cent of lost work time can be due to chronic diseases. So it's in their interests to address the problem," Landers says.
The worldwide statistics on chronic disease are stark, but so too is the rapid rise in such conditions in Ireland. Landers says chronic disease causes 60 per cent of deaths in the Republic, accounts for 60 per cent of all hospital bed days and 80 per cent of GP consultations.
The report states that productivity losses associated with chronic disease are up to 400 per cent more than the cost of treating the conditions.
Globally, chronic diseases represent 57 per cent of all deaths and this is expected to rise by 23 per cent over the next 25 years, while deaths due to other causes are expected to remain roughly stable up to 2030.
The report also stresses that while industrialised countries are still most affected, Western influences on lifestyles throughout the world are leading to similar problems in many developing countries. People living in poorer countries are also susceptible to chronic disease.
The research highlights why businesses should invest in the prevention of chronic disease. Firstly, such conditions are driving up healthcare costs and account for some 40 per cent of lost work time. This leads to more taxes, which in turn leads to higher costs for businesses.
It states that in the next 10 years the UK will lose $33 billion (€21 billion) in national income as a result of heart disease, stroke and diabetes and as a result of reduced economic productivity, with China losing $558 billion (€357.8 billion).
The report also stresses that the demand for talented workers is increasing, and even China will face an era of labour shortage as soon as 2010 and that investment in employees' health makes economic sense.
Landers says the epidemic of chronic disease will raise costs for companies in Ireland both directly and indirectly. "Chronic diseases are affecting business organisations - it's hitting them hard. The higher incidence of chronic disease is driving up healthcare costs and leading to higher taxes and higher health insurance premiums. It is also directly affecting productivity levels, days lost at work, and raising the costs of replacing skilled workers or employees in senior positions. It is also contributing to 'presenteeism', where people may be at work but not able to do the job properly," he says.
He points out that with the rapid increase in obesity levels - two out of five Irish adults are overweight, and one in five is obese - the costs to society are so high that companies cannot ignore them.
"One of the biggest causes of cardiovascular disease is obesity. Obesity can be responsible for many different conditions such as high blood pressure, high cholesterol and type 2 diabetes."
It is also incorrect to regard chronic disease as affecting mainly elderly people, Landers says. "These are not diseases of old age but affect the population of 15- to 69-year-olds, the most productive segment of society," he says.
Landers says businesses now need to realise that employees' health is not just an issue for HR departments, but it must be "a key objective of the organisation, one of the pillars supporting the organisation".
"It should be seen as a very important part of corporate strategy - it is critical to the success of the business," he adds.
Landers says there has been no national survey on the percentage of Irish companies which actively try to help improve their employees' health, but says that anecdotally numbers doing so through "wellness programmes" are increasing. This trend has been led largely by multinationals.
Wellness programmes, he says, can include gym membership or subsidised access to gyms, healthy eating options in the staff canteen, providing free fresh fruit to employees during the day, and education programmes for employees.
He gives the example of a "health management programme" at PwC where staff can avail of a confidential service with an independent doctor. The doctor will assess their health initially and again three months later, after a programme involving diet, exercise and other health issues has been formulated.
He says that companies need to be aware that they will not see "an immediate pay-off" in terms of changes in chronic disease. "But they will see a decrease in days lost and over time a reduction in staff turnover."