Mental Health In the Workplace

While there are significant financial and human costs related to mental illness, the direct costs associated with untreated or under treated mental illness in the workplace is very rarely appropriately quantified by employers.

The challenge many businesses face is understanding the link between mental illness and the effectiveness of the workforce – an often overlooked aspect of an individuals working performance.  In taking the time to learn about mental illness and undertaking steps to supporting mental wellness, corporations can take great strides to improve the efficiency, productivity and effectiveness of their workforce, ultimately increasing their bottom line.

Business Case for Mental Health in the Workplace:  Stats & Facts

  • Disability represents anywhere from 4% to 12% of payroll costs in Canada; mental health claims (especially depression and anxiety) have overtaken cardiovascular disease as the fastest growing category of disability costs in Canada.
  • 20% of Canadian workers experience a stress related illness per year (2001).
  • Chrysalis Performance Inc. research shows that stress in a business contributes to:

    • 19% of absenteeism cost
    • 40% of turnover cost
    • 55% of EAP costs
    • 30% of short term disability and long term disability costs
    • 60% workplace accidents
    • 10% of drug plan costs
    • 100% of stress related lawsuit
  • Mental health disorders in the workplace cost Canadian companies nearly 14% of their net annual profits and up to $16 billion annually. More recent calculations, which include indirect costs, suggest that upwards of $30 billion is lost to the Canadian economy annually due to mental health and addiction issues.
  • Disability costs represent 12% of payroll costs, and mental health claims, particularly depression, are the fastest growing category of disability costs in Canada.

Healthy Workplace Programs

Healthy workplace programs help organizations manage and accommodate employees experiencing mental health disabilities.  They address employee mental illness issues and facilitate actions which contribute to the mental wellbeing of employees.  These programs aid both employers and employees; helping employers recognize the prevalence of mental illness within the workplace, and give employees the necessary tools and resources needed to overcome mental illness.

The objective of most successful mental health programs is to institutionalize healthy practices so they become routine daily activities.  As such, workplace health programs should be thought of as apart of a business strategy that provides a solid return on investment for the company as well as the workforce.  In promoting mental wellness within the workplace, businesses can make great strides to improving many aspects of their business operations; including:

  • Reinforce Recruitment: Studies show work-life balance is one of the benefits employees are looking for in a job, providing a competitive edge in a tight labour market.
  • Raise Retention: The majority of companies reported improved retention as an outcome of work-life balance programs.
  • Decrease Absenteeism: Workers who report a high degree of stress balancing their work and family life missed 7.2 days of work each year, while those who reported very little stress only missed an average of 3.6 days.
  • Power up productivity: Companies reported significant gains in productivity after implementing work-life balance programs.
  • Neutralize the nay saying: Work-life balance strategies produce gains in employee satisfaction surveys, customer service evaluations and improve relationships among colleagues.
  • Promote Participation and Training: Studies show employer support of work-life balance allows and encourages greater participation in training and education.
  • Raise the Bottom Line: As a result of increased customer satisfaction, efficiency, employee effectiveness, workplace health can translate into improved profit potential and reduction of expenses.
  • Increased Employee Effectiveness: Increased confidence among staff will result in enhanced creativity, risk taking and innovation.

Healthy Workplace Program Tools for Employers

For more information regarding Healthy Workplace Programs, please refer to the following:

Great-West Life Centre for Mental Health in the Workplace -  Provides support for companies to understand and accommodate mental illness in the workplace, including strategies for realizing a Healthy Workplace.

Guardian Minds @ Work - Provides a framework for assessing and addressing workplace mental health.

The Ten Steps to Evaluating a Health Promotion Program - A 10 step framework for evaluating mental health within the workplace, created by the Health Communication Unit for Health and Promotion, University of Toronto.

Sources: CMHA, World Health Organization, Centre for Addition and Mental Health, Canadian Public Health Agency, Statistics Canada, STRIDE, Centre for Mental Health in the Workplace