A business case for investing in mental health and wellbeing

Globally there has been more focus on the impact of the work environment on mental health and wellbeing, with some countries implementing legislative measures to protect employees from psychosocial hazards at work. The protection of mental health and wellbeing in many areas extends to the obvious, such as working conditions or a ‘toxic’ working environment that include things such as excessive stress and unfair discrimination. Issues like low job control and autonomy, unhealthy work boundaries, and unreasonable workloads are also pressing factors that contribute to a psychologically unsafe workplace.

While the implementation of legislation to protect employee mental wellbeing sounds philanthropic, there is also an economic drive behind many of these actions. Similarly, outside the obvious moral obligation to care for employees, organisations and leaders may see significant price tags attached to poor mental health in their workforces and are taking action to do more to protect employee mental health and wellbeing. According to the World Health Organisation (WHO), “Globally, an estimated 12 billion working days are lost every year to depression and anxiety at a cost of US$ 1 trillion per year in lost productivity.”

In the U.S. alone, annually, workers with poor mental health are estimated to take nearly 12 days of unplanned days off compared to 2.5 days for workers with good mental health. Across the U.S. workforce, this is estimated to cost a staggering $47.6 billion in productivity loss annually.

Absenteeism is a huge cost for businesses, but it is an issue that is very much in the power of organisations to mitigate and control. In addition to absence, poor working conditions and mental health can lead to higher turnover rates, increasing the costs associated with recruitment and training, as well as with the downtime disruption caused by an employee leaving.

A win-win: The benefits of investing in mental health

While there are staggering financial consequences of neglecting mental care in the workplace, businesses can benefit from boosting employee mental health and wellbeing. Focusing on creating a mentally healthier place to work leads to increased productivity and decreased absenteeism, as well as higher employee retention, which are huge benefits to any organisation. A 2022 report found that 86% of H.R. professionals believe that offering mental health resources can increase employee retention.

Having a work environment in which people are positive and feel they can thrive, means that they are more motivated to achieve their goals and do so with more focus, concentration and a better overall job performance. A separate 2022 report found that 92% of workers said it was important to work for an organisation that values their emotional and psychological well-being and provides support for mental health. High employee satisfaction rates can, in addition to everything previously said, create a more creative and innovative workforce that seeks growth and improves business.

Collectively these benefits strengthen company culture, providing a safe and enjoyable work environment that can attract top talent, while protecting employee retention. Investing in mental health improves employees personal and professional lives.

Strategies for mental well-being in the workplace

Employers can make a difference for their employees mental health and wellbeing through:

• Assessing the work environment through the lens of good health and wellbeing: Employers can take action to identify psychosocial hazards and issues that may cause harm. Assessing the workplace through this lens may include reviewing overtime hours, work load, control over work performed, and issues that cause unnecessary frustration, stress, and pressure. Identifying hazards should then extend all the way through to assessing associated risks, and what steps could be taken to mitigate any identified psychosocial hazards.
• Creating a psychologically safe workplace: Making psychological safety a priority may have a positive effect in reducing stress and burnout as well as enhancing employee engagement and performance. At a broader level, organisations that strive for better psychological safety unlock the immense potential of employees who are comfortable challenging assumptions, sharing innovative ideas, and openly discussing their successes and challenges.
• Flexible working options: Providing employees with the option to work remotely can increase flexibility, reduce commute times, and improve work-life balance for those with disabilities or caregiving responsibilities. Work-from-home policies can reduce overhead costs and give employees greater autonomy and flexibility while still ensuring business objectives are met.
• Employee assistance programmes (EAPs): Many EAPs offer a safe space for employees to discuss their concerns with a qualified professional without fear of judgment or repercussions. In addition to counselling, EAPs can provide various support services, such as crisis intervention, referrals to specialised providers, and information/resources on mental health topics.
• Mental health training and awareness: Providing employees with mental health training can help them better understand mental health conditions, reduce stigma, and learn effective coping mechanisms. Creating a culture of open communication and acceptance can help employees feel more comfortable discussing their mental health concerns and seeking support. It is important to ensure line managers are well placed and know where to turn regarding mental health and wellbeing when it is raised by employees.
• Encouraging employees to take care of their mental health and wellbeing: Each person has their own set of variables that impact their mental health both positively and negatively. The more open we are to discussing our own mental health, the deeper the understanding we have over the variables that affect it. This, in turn, means we are more comfortable asking for help and offering support to others. Here is a link to a previous article on this topic: How leaders can promote a culture that values mental well-being.

This is not an exhaustive list of things employers can do, but small actions collectively make a big impact in providing a better work environment for employee mental health.

Creating a supportive work environment

By fostering a culture of empathy, understanding, respect, and open communication, organisations can create a more supportive and inclusive work environment and reap significant business benefits. Encouraging employees to be empathetic and understanding of each other's experiences can help reduce stigma and create a sense of community, leading to improved morale and productivity.

Educating employees about mental health and wellbeing can increase awareness and understanding, while promoting respect for all employees can create a more welcoming and inclusive workplace, attracting and retaining top talent. Finally, providing resources and support for employees' overall well-being can help to prevent burnout and create a more fulfilling work environment, ultimately leading to increased productivity, reduced absenteeism, and improved business outcomes.