“Chronic diseases cost Canadian businesses an estimated $122 billion in lost productivity every year.” That’s not just a number—it’s a wake-up call (canada.ca).

Diabetes, heart disease, mental health struggles—these conditions don’t just affect employees; they impact the financial health of your business. But here’s the problem: most employers focus only on direct healthcare costs, overlooking the bigger picture. The real financial strain comes from lost productivity, absenteeism, and employee turnover. And if you’re not paying attention, these hidden costs are quietly eating away at your bottom line.

The True Cost of Chronic Disease in the Workplace

Productivity Drain: The Silent Profit Killer

• Employees managing chronic conditions often battle fatigue, pain, or frequent medical appointments. This leads to presenteeism—when someone is physically at work but not truly productive. In fact, studies show that presenteeism can be even more costly than absenteeism, resulting in millions of dollars in lost output every year. Employees may be showing up, but your profits are slipping away.

      (Conference Board of Canada)

👉 Read more: From Presence to Performance: Benefit Strategies to Drive Employee Engagement

More Sick Days, More Disruptions

• Chronic disease doesn’t just slow employees down—it takes them out of the office entirely. According to the Public Health Agency of Canada, chronic conditions account for most health-related work absences. This results in more last-minute scheduling headaches, heavier workloads for remaining staff, and lower overall efficiency.

Skyrocketing Insurance Premiums

• When more employees require ongoing care, insurance claims increase. And when claims increase, so do your premiums. Without proactive measures, rising benefits costs year over year can quickly become unsustainable, creating another financial burden.

Higher Employee Turnover and Recruitment Costs

• Employees struggling with unmanaged health conditions are more likely to leave for an employer who offers better support. When they leave, they take valuable institutional knowledge with them. You’ll then be left to shoulder the high costs of recruiting, hiring, and training replacements—costs that could have been avoided with the right benefits strategy.

What Employers Can Do

Invest in Preventative Care

• Early intervention saves money. Encouraging annual health screenings, providing wellness programs, and offering virtual healthcare access can help employees manage health issues before they escalate into costly claims and lost work hours. Prevention is the best medicine—for both health and your bottom line.

Build a Benefits Plan That Actually Works

• A strong benefits package should go beyond basic coverage. Chronic disease management, mental health resources, and alternative therapies aren’t just perks—they’re investments in a healthier, more productive workforce. Ensure your plan is designed to support long-term employee well-being. It’s not just about ticking boxes; it’s about enhancing your company’s culture and output.

Work With a Benefits Consultant Who Knows the Game

• Navigating employee benefits on your own? That’s like trying to diagnose a medical condition without a doctor. A benefits consultant can help you design a cost-effective plan that promotes a healthy workforce while protecting your company’s financial health. Their expertise will save you from costly mistakes in the long run.

The Bottom Line

Chronic disease isn’t just a healthcare issue—it’s a business issue. The costs add up quickly, but the good news is that with the right strategy, you can protect both your employees and your bottom line.

It’s time to rethink your benefits plan. Are you ready to take action? Let’s talk about building a plan that works for both your employees and your business goals.