We can see that the mental health problem is becoming a massive one that cannot be ignored. But why is the mental health of employees an important factor for employers, and how can a lack of employee mental health support affect business?
One Mind, a leading nonprofit brain health organization, estimates that by 2030, business losses from employee mental illness in the United States will reach $16 trillion
, far outpacing losses from heart disease, cancer and diabetes.
The world of work is inexorably changing: issues related to the mental health of the staff are things that can significantly affect the company's revenue and success right now. Let's consider each business-relevant item separately.Employee engagement
Absence of fear to tell about his problem to the employer or even to get time off, increases motivation and loyalty of the employee to the company, which further leads to increased efficiency of the staff and allows to achieve sustainable results in work for a long time. The CIPD estimated that annual business losses
in the UK due to lack of employee engagement, coupled with other factors of mental problems, amount to between £33 and £44 billion
The CIPD found that poor mental health is now the number one cause of long-term absenteeism (four weeks or longer) in the UK. The audit company Deloitte estimates that the cost of absence per employee
ranges across sectors from £1,119 to £1,481 a year
in the private sector to £1,551 to £1,878
in the public sector and about £8 billion total
in the UK economy each year.Presenteeism
Some people with poor mental health don't take time off from work and come to work when they're not feeling well, which can have a big impact on their ability to work in the process. And this, along with absenteeism and sick leave, also costs employers quite a bit. Research institutes estimate that the annual cost to employers of absence due to mental health-related presenteeism (people coming to work while sick) exceeds the cost of absence estimated at £17-26 billion each year
in the UK.Staff turnover
Statistics show that people with long-term mental health conditions are twice as likely to lose their jobs as people without mental health problems. That said, the cost of hiring a new employee is always significant, and the higher the position, the higher the cost, not to mention the training and development costs that are lost when the employee leaves. CIPD research also claims that employee turnover is causing UK businesses to lose about £8 billion
a year.Conflicts at work
Research shows that the most common consequence of conflicts at work is that people see them as stressful, which emphasizes the need for employers to foster a healthy work environment with zero tolerance for bullying. Because as a result of such conflicts, the effectiveness of not only one particular employee, but of the team as a whole can decrease, which will inevitably lead to a decrease in company profits and additional costs. For example, conflicts can lead to an increase in employee absenteeism, which means the cost of employee absenteeism will exceed £8 billion
a year.Corporate governance and employer brand
Employers who fail to manage mental health at work risk damaging their employer brand through potentially high-profile and costly litigation, lawsuits over unfair dismissal or discrimination, and breach of contract. Conversely, well-developed employee mental wellness management can increase an employer's attractiveness among professionals, enhancing its brand and reputation in the labor market, which will then lead to an influx of valuable talent that will drive business growth.