Investing in workplace mental health: How proactive programs can increase ROI

Research from global professional services network Deloitte shows investments in mental health programmes in the workplace generate returns of up to five times their original value, sometimes more – including the healthy and happy employees that come along with such increases.

(Photo: Adobe Stock)

On the other side of the spectrum, in the USA, the cost of untreated mental illness can be staggering – with approximately US$200 billion spent on it annually. This enormous expense not only encompasses medical claim costs but also includes the indirect costs of turnover, absenteeism and reduced productivity.

The cost of untreated mental illness in Europe is equally disruptive – with expenses arising from direct healthcare costs, lost productivity and social welfare expenditures.

The European Mental Health Action Plan estimates that the annual cost of mental illness/health to European economies is around €600 billion – a figure representing more than four percent of GDP across EU countries.

Narrowing the focus, on average in the USA, employees struggling with mental health issues lose 27 workdays a year – essentially equating to an entire month of lost productivity. According to UN News, across Europe it’s estimated that depression and anxiety result in 12 billion lost workdays annually, costing the global economy nearly $1 trillion.

Numbers being what they are, the Deloitte study highlighted the fact that resignation costs often represent a double blow. Not only do you lose an employee’s knowledge and skills when they leave but hiring and onboarding new employees is expensive. Prevention is almost always the best option.

Can’t be ignored

To that end, as the conversation surrounding mental health in the workplace continues to gain momentum, CFOs, CEOs and HR professionals must work collaboratively to address mental health as an integral part of their company’s culture and benefits package.

Just as physical health screenings, blood-pressure management and lifestyle choices are emphasised, mental health should receive equal attention. As revealed by some of the numbers above, the costs of untreated mental health issues in the workplace are too significant to ignore.

That said, methods of investing in the mental health of your employees can be divided into the following categories: reactive (you help an employee after they’ve developed mental health symptoms), proactive (you help an employee to avoid developing mental health symptoms) and organisation-wide cultural change (you create a healthy business culture and increase awareness around mental health).

The Deloitte research revealed the average return on investment here is €3, €5 and €6, respectively, per invested euro. Obviously, the primary focus is on people and their well-being but, in general, the largest gains were found to be achieved through programmes that: brought about large-scale cultural change within the organisation and impacted large numbers of employees, that focused on prevention and improving employee resiliency and that used technology and diagnostics to tailor support for people who need it the most.

At the end of the day, the Deloitte study, and myriad studies around the world like it, come to similar conclusions: by prioritising mental health and implementing supportive measures, organisations can mitigate the financial losses associated with absenteeism, turnover and reduced productivity.

And, ultimately, investing in the mental well-being of employees is not only a compassionate approach, but also a strategic business decision that can yield positive returns directly connected to a healthier, more engaged workforce.