How Your Employees’ Mental Health Can Impact Your Bottom Line
It’s no surprise that the pandemic accelerated an already growing threat to companies by adding a tremendous amount of stress and uncertainty into employees’ daily lives. The disruption to personal and work life has thrown many individuals into a mental health crisis.
Data gathered by the Centers for Disease Control (CDC) and the World Health Organization (WHO) show a significant increase in the number of workers who have sought mental health services. And that data also shows an increase in the number of people who have committed or attempted to commit suicide. This is a global issue and one that is not going away anytime soon. This is not a time to be passive. Businesses and leaders must take action to ensure their people have access to the resources they need to remain healthy.
Solving this issue will not be easy and requires a more strategic business approach than most organizations are committing. There remains a stigma in discussing mental health and seeking out mental health services, and business leaders should gain the appropriate training to hold conversations about mental health and create a more transparent and vulnerable environment around the topic. Below are some of the dynamics of the crisis that make the issue so complicated.
Increased psychological distress: The pandemic has led to increased levels of stress, anxiety, and depression in many individuals. Disruptions in daily routines have contributed to these mental health challenges.
Rise in mental health disorders: Studies have reported an increase in the prevalence of mental health disorders during the pandemic, including anxiety disorders, depressive disorders, post-traumatic stress disorder (PTSD), and substance use disorders.
Vulnerable populations: Certain populations have been more affected by the pandemic’s mental health impact. This includes workers who have faced immense stress and burnout, working parents, members of the LGBTQ+ community, as well as individuals with pre-existing mental health conditions. Women are also diagnosed with serious mental health conditions at higher rates than men.
Impact on children and adolescents: younger individuals have also experienced mental health challenges during the pandemic, placing more stress on working parents. According to Mental Health America, 10% of youth covered by private insurance did not have access to mental health services in 2022.
Access to mental health services: The pandemic has highlighted existing gaps in mental health services, professionals, and resources. Many individuals have faced barriers in accessing necessary mental health support due to factors such as limited availability of services, financial constraints, and the shift towards remote healthcare delivery.
If you are not convinced that there is a moral obligation to offer mental health support to your people, there is a compelling business case for doing so as well. Below are several ways in which the mental health crisis can adversely affect your organization:
Decreased productivity: According to the National Alliance on Mental Illness, “The impact depression and anxiety has on the global economy can be measured in $1 trillion in lost productivity each year.”
Employees experiencing mental health issues often struggle to focus, stay motivated, and perform at their best. This can lead to decreased productivity and lower work output, directly impacting a company's bottom line.
Increased absenteeism and presenteeism: Mental health challenges can result in increased absenteeism, where employees take more sick days or time off to cope with their condition. Additionally, even when employees are physically present, they may not be fully engaged or productive due to mental health issues. This is known as presenteeism and can result in reduced efficiency and output.
Higher turnover rates: When employees' mental health is not adequately addressed or they do not feel supported by their manager/leader/organization, they may become dissatisfied, leading to higher turnover rates. Recruiting, onboarding, and training new employees are expensive processes that can negatively impact a company's financial resources.
Increased healthcare costs: Mental health problems can contribute to increased healthcare costs for an organization. If employees' mental health issues go untreated or worsen, they may require more medical interventions, therapy sessions, or medication. These expenses can add up and impact on a company's financial bottom line.
Work-related accidents and errors: Poor mental health can impair concentration, decision-making, and cognitive abilities, increasing the likelihood of accidents, errors, or workplace incidents. These incidents can have financial consequences, such as increased insurance premiums, potential legal liabilities, and additional expenses for incident investigations.
Negative workplace culture: If employee mental health is not prioritized or stigmatized within a company, it can lead to a negative workplace culture. A toxic work environment can hamper collaboration, teamwork, and employee morale, ultimately impacting overall productivity and performance.
Decreased employee engagement and satisfaction: Mental health challenges can affect employee engagement and satisfaction. Employees who feel unsupported or undervalued in terms of their mental well-being may become disengaged and less committed to their work. This can result in reduced overall job satisfaction and overall performance.
To mitigate these negative effects, organizations should prioritize employee well-being by taking a strategic approach and ensuring that the initiatives make an impact on the increased well-being of their employees. Some of the areas that are invested in by organizations within their strategy include manager training, supporting benefits/resources including health/welfare plans, an Employee Assistance Program (EAP), time off programs, and more. By investing in employee mental health, companies can improve productivity, retain top talent, and enhance their overall bottom line.