Investing in Mental Health Is Good for Business

May is Mental Health Awareness Month, and over the past year Americans’ mental health has taken a hit due to the stresses of the coronavirus pandemic. Over 40% of Americans have reported mental distress which has negatively impacted their productivity at work, increased absenteeism, and increased health care costs.

Businesses that monitor their employees’ well-being and provide support not only help their workers, they help their company’s bottom lines. A recent analysis from the National Safety Council (NSC) and NORC at the University of Chicago revealed businesses that support mental health see a return of US$4 for every dollar invested in their employees’ mental health treatment.

The NSC partnered with NORC, a nonpartisan research institution, to create the Mental Health Cost Calculator funded by Nationwide Mutual Insurance Co. so employers could better understand how they play a role in supporting staff mental health and safety. The calculator tool demonstrates the cost businesses pay for employees’ mental health conditions including depression, anxiety, and general mental distress. It gives business leaders data-driven insight on how untreated mental health impacts employers’ costs through an estimate of the dollars lost from missed workdays, excess employee turnover and replacement costs, and increased health care use by distressed workers and family members.

The results showed that pre-pandemic, businesses spent an average of over $15,000 annually on each employee experiencing mental health issues.

Other findings from the research analysis include:

• Employees experiencing mental distress use, on average, nearly $3,000 more in health care services per year than their peers. The cost of days lost averages $4,783 per year per employee, and the costs of turnover averages $5,733 per year per employee.
• Distress varies greatly across occupations. Occupations with high levels of distress include technicians and related support occupations, entertainment, sports, and media and communications. Low prevalence occupations include executive, administrative, managerial, financial, protective services, and construction.
• Employees who have experienced mental distress in the past year are more likely to have reported driving under the influence of alcohol, marijuana, or other drugs.
• Mentally distressed workers are 3.5 times more likely to have substance use disorders.

“Employers are uniquely positioned to address employee mental health by raising awareness, supporting routine screening and early identification, and improving access to care and evidence-based treatments,” said Tracy McPherson, PhD, senior research scientist in the public health department at NORC “Investing in a mentally healthy workforce is good for business, fosters a safe workplace, and improves the health of employees and their families.”

For more information on how employers can prioritize mental health and safety visit https://www.nsc.org/mentalhealth.