Have you ever stopped to think what ignoring mental health in the workplace could be costing you? According to the World Health Organization (WHO), in 2019 15% of working-age adults were estimated to have a mental health disorder. These numbers have only increased since the global pandemic in 2020. The pandemic triggered a 25% increase in stress and anxiety-related disorders (WHO) within the United States. Research has shown that globally, an estimated 12 billion work days are lost every year due to anxiety and depression alone, costing the US around $1 trillion per year in productivity and revenue. This may make you wonder what ignoring mental health could be costing your business.
When thinking about the mind-body connection, it is impossible to separate mental and physical health. Those who have untreated mental illness are more susceptible to chronic diseases and, often those with chronic conditions are likely to experience significant mental distress. A recent study found that employees with chronic conditions and co-occurring depression cost employers more than double compared to those with only chronic conditions. For example, individuals who have depression are 60% more likely to develop diabetes, while diabetes can also double or triple the risk of depression. Chronic conditions and pricey drugs are driving a projected 5.4% to 8.5% increase in 2024 health costs with untreated mental health concerns being the biggest culprit. This means that by supporting your employees’ mental health you will not only foster a healthy work environment, but you could also be making a smart business move and help reduce your healthcare costs.
One impact of untreated mental health in the workplace is decreased productivity. Struggling with mental health issues can cause employees to struggle with performance, concentration, and motivation. Depression, anxiety, high stress levels, and burnout can cause a range of difficulties for employees, including missing deadlines, an increase in errors, and an overall reduction in productivity and quality of work. Studies conducted by Harvard Business Review indicate that difficulties with mental health cost businesses in the US an estimated $80-$100 billion annually in lost productivity alone.
Another impact of mental health in the workplace is increased absenteeism and presenteeism. When employees are struggling with their mental health they often do not have the mental capacity to show up to work and wind up taking more sick days or PTO. They will usually use their time off to have mental health days and attend to their well-being. Presenteeism is also more prevalent. Presenteeism refers to employees being physically present but not being mentally present and unable to perform at their usual level. A report by Mental Health America found that untreated mental health conditions account for 200 million lost workdays each year in the US. In the United States, absenteeism due to depression alone is estimated to cost businesses about $44 billion annually. This absenteeism and presenteeism both result in a reduction of work hours and can impact team performance and morale.
Negative workplace culture and employee relations is also a symptom of untreated mental health in the workplace. In workplace environments where mental health concerns are stigmatized or minimized, it contributes to a toxic work culture. This can create hesitancy in employees to seek help or disclose mental health concerns which can be detrimental to employee health and overall workplace morale. Dismissing mental health in the workplace creates an unsafe environment for employees because they are less likely to seek support due to fear of judgement, or repercussions which can exacerbate their mental health concerns. Over time, this lack of support and safety can dissolve trust, teamwork, and collaboration among colleagues. A negative workplace culture not only affects the physical and mental well-being of employees but also impedes overall productivity.
When we think about the bottom line, we can’t ignore the cost untreated mental health can have on turnover rates. Dismissing mental health in the workplace can lead to much higher turnover rates. Turnover is more likely to occur when employees feel undervalued, unsupported, and when their health and well-being is being dismissed. In these environments they may become disengaged, unmotivated, dissatisfied, and ultimately seek alternate employment opportunities in an environment where there is more support and mental health resources being provided. When analyzing the cost of high turnover for your business, you must account for the cost of recruiting, training, and onboarding. According to The Society for Human Resource Management, replacing an employee is estimated to cost up to 50% or more of their annual salary. By investing in mental health support you can help support and retain valuable members of your team and cultivate a positive and inclusive work culture. Not only can investing in mental health support help with employee retention but it can also help conserve significant company costs in the long run.
A last major cost of ignoring mental health in the workplace is an increase in healthcare and insurance costs. As stated earlier, mental health struggles can often lead to difficulties with physical health or exacerbate chronic medical issues. This could easily result in a greater need for medical interventions, medication, or therapies which can increase insurance premiums. Ultimately this greater demand for services increases the healthcare costs for both the employee and employer. According to the National Institute of Mental Health, mental health issues affect approximately one in five adults. When thinking about the best way to support the mental health of your employees there are many potential solutions that can be offered to promote a healthier environment. Even a few larger well known companies have implemented some of these proactive measures.
One way employers can invest in the mental health of their employees is by training managerial and leadership staff members to serve as “mental health champions.” These staff members are trained to identify signs of mental health struggles among colleagues and help to refer them to the appropriate mental health professionals. According to research done at John Hopkins University, this technique has been implemented by some larger companies including Unilever which is behind brands such as Dove and Ben & Jerry's.
Another way to provide mental health support to employees can include developing a Wellness Program. Such programs can promote employee wellness and well-being by developing, organizing, and overseeing activities which promote balance, health and peace. Activities could include weekly events such as pet therapy sessions, outdoor scavenger hunts, health screenings, walking meetings, meditation workshops, a speaker series addressing burnout, or stress management programs. Such activities can help promote health and wellness both within and outside of the workplace.
Other steps that can be taken as an employer include, providing access to professional counseling services or providing access to mental health evaluations and workplace risk assessments. According to research by Johns Hopkins University, companies such as Johnson & Johnson, Oliver Wyman, and Samsung Electronics Co., Ltd. have implemented such programs and policies to help break the stigma around mental health and encourage open and honest conversations. Such actions can help contribute to a safe and supportive work environment.
As an employee there are also steps you can take to protect your own mental health at the workplace. One of the best policies to implement within yourself is having strong boundaries. This means being mindful of your workload and work-life balance and not over committing or over extending yourself. It is important to remember that everyday productivity will look different and that is okay, it’s supposed to. Some ways to set boundaries can be with yourself or with others. For example committing to not working past a certain time, turning your work phone off for a few hours, knowing when to say “no,”or not taking work home everyday. Other things you can do are plan ahead for nutritious meals and snacks during the day to fuel your body and mind. You can also insert preset breaks into your schedule and honor them when the time comes along to take one. This can give you time to stretch, change your environment, handle a personal errand, read for leisure, walk or go to the gym, or maybe take some quiet time in your car.
In order to support mental health in the workplace you must first acknowledge the humanity of your employees. Establish a spirit and culture that values mental wellbeing at its core by acknowledging the significance of mental health and offering support, reprieve and resources. Allow flexibility to work from home, four day work weeks, quiet rooms, manager and leadership training, and access to comprehensive health insurance with good mental health coverage. This level of support helps break the stigma related to mental health and promotes an open and safe environment for employees. By fostering a workplace that encourages open communication, you allow safety and space for your employees to seek assistance and prioritize their health. Remember, by committing to the mental health and well being of your employees you are also committing to the growth and success of your business. In this day and age you must ask yourself, Am I able to afford the cost of ignoring mental health in the workplace?