Ways Mental Health Benefits Lead to Reduced Healthcare Costs and Increased Profitability

Your staff is the heart of your workforce. We count on our employees to do their assigned jobs and to hopefully thrive and excel. When everyone is “on top of their game”, the business thrives. Studies have shown that most employees consider their work very meaningful and important to them. While that is a wonderful statistic, Sometimes the demands of daily work become too much, and mental health declines.

The Impact of Mental Health on Employee Productivity

Employees who take their work very seriously may try to “push through” their struggles in the name of job security. In the short term, it may not be as noticeable, and overall, the business may continue to thrive. In the long term, however, employees who are not able to take care of their mental health are more likely to experience burn-out. This leads to less overall productivity and hardship on all sides. In this article, we will explore the financial benefits of investing in mental health initiatives for your organization. We will also explore how providing mental health benefits can lead to cost savings through reduced healthcare expenses, decreased turnover, and improved productivity.

Why Invest in Mental Health Initiatives?

Employees are most productive when they feel they are valued. Providing mental health education and resources are very valuable. A study in Canada involving first responders found that utilizing a specific program [i] that encourages mental health check ins and coping skills reminders led to more better resilience from the responders. They felt more competent to handle themselves with situations that arise in their intense work.

The Role of Employee Assistance Programs (EAPs)

Even if you aren’t working an intense job like a first responder, it is important to make your employees feel safe to speak up when they are struggling. Some companies invest in employee assistance programs (EAP’s) for employees to utilize when the need arises. Employee Assistance Programs vary in their intensity, but most provide short-term counseling services or case management.

Whether it is partnering with a therapeutic company to provide services for your employees, mental health newsletters, or company activities, mental health awareness is critical for a successful workforce.

Cost-Effectiveness of Mental Health Programs

While mental health initiatives have costs upfront, the results are reduced absenteeism and increased productivity. A large research study [ii] of over 8000 employees worked diligently in steps to determine: 1) What are the barriers to coming to work? And 2) How can the work environment help improve overall employee mental health?

How Valuing Employees Improves Productivity

The top responses for absenteeism included other employees, managers, and extenuating life circumstances. The program put heavy emphasis on mental health destigmatization education, as well as to heavily train and prepare supervisors and managers to recognize signs of distress more quickly. Every part of the company, whether it was managers, marketing, or HR- all were involved in keeping mental health initiatives alive.

Outside of this study concerning productivity, it is generally agreed that when employees feel valued and respected, they give that same respect back in their work. Valuing employees is as simple as encouraging them to not skip their breaks, or to go outside for a quick walk. If possible, let your employees make their workspace more welcoming, such as plants or pictures. Offer specific hours to encourage open communication and/or feedback.

Creating A Thriving Business With Mental Health Initiatives

To summarize, mental health initiatives do not have to cost tons of dollars, but it is necessary to implement something. Work is not easy, and most people cannot just stop working to deal with mental health struggles. It would be wise to consult with mental health educators who can advise on what your employees may respond to best, and to always be open to future collaborations or adjustments. When the employer and employee come to the same understanding, the business thrives.

[i] World Psychiatry. 2018 Oct; 17(3): 370–371.

[ii] Ammendolia et al. BMC Public Health (2016) 16:1190

DOI 10.1186/s12889-016-3843-x