Why underestimating the value of your organisation's mental health strategy is a mistake
WORKPLACE MENTAL HEALTH
7 MIN READ
Written by Amanda Howie
Clinical Psychologist | Founder
The facts are in. Research is showing that 1 in 5 Australians will experience a problem with their mind health in a 12-month period. Take a moment to really think about that. Someone you care about will experience a challenge with their mind that will impact their day to day functioning in some way…you’re wife, your husband, your brother, sister, child, mother, father, friend…and, your peers and employees (including executives). Maybe you.
In this article I’ll outline the exact impact that mental health issues have on workplace outcomes, the clear benefits of committing to a strong, supportive mental health strategy, and a simple, best practice framework for building workplace mental health and well-being in your organisation.
What is the impact of your people’s mental health issues on workplace outcomes?
HERE’S WHAT I’VE NOTICED PROFESSIONALLY
In my clinical, one-on-one work with hundreds of Australians both in and out of the workplace: mental health stigma is still a very real issue preventing timely help-seeking (if any). Many individuals let their problems escalate to the point where they are no longer able to be the best version of themselves either at work, in life (or both), before they engage support.
Here’s the impact I’ve seen in the workplace. When clients finally present, I often hear them describe challenges with concentrating and completing their individual work as effectively and efficiently. They will often describe reduced problem-solving capacity and less motivation, experiencing small problems as overwhelming and reduced enthusiasm to go to work. Interpersonally, they can start experiencing issues with their peers as their mind becomes more sensitive to misperceiving criticism and the communication of others.
Ultimately, as clients near their rock bottom of internal resources, it’s quite common to need extended time off work to focus on re-building their mental health to return to optimal functioning. For some particular mental health presentations, the individual will go on to experience multiple episodes with declining functioning and increased time off work if they don’t receive adequate, complete mental health treatment.
THE FACTS
Mental health issues cost your business money. A recent analysis by Pricewaterhouse Coopers (PDF) suggested that untreated mental health issues cost Australian workplaces approximately 10.9 billion per year ($4.7 billion in absenteeism, $6.1 billion in presenteeism, and $146 million in compensation claims).
In another study that polled 34,622 employees at 10 companies, researchers ranked the costliest health conditions (physical and mental) based on medical and pharmacy expenses, lost productivity and absenteeism.
Depression ranked number one. Anxiety fifth. Obesity, arthritis and back and neck pain in-between.
What are the benefits of investing in a strong mental health and well-being strategy?
POSITIVE RETURN ON INVESTMENT
The research on mental health problems in the workplace suggests that the financial cost to companies can be reduced by taking actions to create a mentally healthy workplace. Actions include prevention initiatives, early intervention and treatment, and rehabilitation/return to work strategies.
The Pricewaterhouse and Cooper (PDF) report conducted an analysis across industries and organisation size to quantify the benefits of addressing mental health conditions in the workplace compared with the associated investment required. They found that the average ROI across industries, organisation size, and type of initiative was 2.3. Although, the authors note that the size of ROI, and the time it takes to see a positive ROI will vary depending on the industry, size of the organisation, type of initiative, and number of initiatives implemented. For example, the mining industry will tend to receive an ROI of at least 15; larger organisations may need to implement strategies that are targeted to a specific team or group; and the number of implemented actions may increase the benefit.
THE INTANGIBLES
There are many other intangibles that appear to reinforce a mental health and well-being strategy as good for business.
1. Attract and retain highly skilled workers
6 key findings from large nationwide surveys by Beyond Blue (PDF) and Instinct and Reason (PDF) suggest that a mentally healthy workplace could be a powerful strategy for attracting and retaining your top talent:
A mentally healthy workplace is the second most important factor in employees’ decision to accept a new job, only after pay
A mentally healthy workplace that was friendly and supportive, and promoted and protected the mental health of employees was the second most powerful inhibitor of a worker leaving their job. Being provided with flexible working conditions being number one
Almost 45% of surveyed workers had left a job in the past because it had a poor mental health environment
91% of workers believe that mentally healthy workplaces are as important as physically safe workplaces
71% of workers say that a mentally healthy workplace is important when looking for a job in the future
Only 52% of employees believe that their workplace was meeting their expectations in terms of providing a mentally healthy workplace
2. Increased morale and work satisfaction
People are more inclined to give more to relationships where they feel valued and treated well. This includes the employer – employee relationship. Given the above statistics it seems intuitive that creating a workplace that is perceived as supportive of individual mental health and well-being will foster workers who feel cared for and respected. In this two-way relationship workers are likely to feel more intrinsically motivated to engage and commitment to their job and work performance as a sign of mutual respect.
3. Increased organisational social impact
It’s estimated that workers spend a third of their time awake at work. A workplace mental health and well-being plan is a great way to extend the social impact of your organisation. Imagine how satisfying it would be to know that your organisation is not only making a difference to the lives of the customers your product or service targets, but is also enhancing the quality of life of every person that joins your team to support you in achieving your mission. Even beyond this, an organisation that supports a healthy, proactive mental health culture in the workplace is ultimately contributing to changes in attitudes and conversations about mental health and help-seeking in family homes and the wider community.
4. Fulfil workplace safety duties
Not only do workers appear to value a workplace that is mentally healthy and safe, but under the model WHS Act, organisations have a duty to ensure the health and safety of their workers (including both physical and psychological). Studies are revealing that mental health can be negatively affected in the workplace by psychological hazards that lead to work-related stress, and over the long term can cause psychological injury like depression or anxiety. Examples of these psychological hazards include: work pressure, harassment and bullying, poor support, poor workplace relationships, isolated or remote work, exposure to violence or trauma, and more.
Psychological injury contributes to 6% of worker’s compensation claims, costing organisations approximately $543 million each year.
To meet workplace health and safety standards, enterprise should be demonstrating actions to minimise risk of psychological injury in the workplace, intervening early, and supporting workers who have been impacted to recover and return to work…as a minimum.
Best practice framework for building workplace mental health and well-being in your organisation
The following framework has been emerging as best practice in the literature, and is a simple model that you can use to guide the foundations of a comprehensive strategy.
Key Points
Mental health problems are very prevalent and costly in the workplace.
Studies suggest that costs spent on mental health and psychological well-being represent an investment that will pay off (for both the worker’s mind health and the organisation’s financial health).
To maximise ROI and benefits for workers, a thorough strategy should focus comprehensively on preventing, intervening and advancing mental health and psychological well-being. Although, the combination of initiatives that you implement should be specifically designed with consideration for your industry, size, and organisational needs.
Intangible benefits of creating a mentally healthy work environment are likely to include: a competitive edge in attracting and retaining the best workers, increased morale and work satisfaction, expansion of organisational impact and social responsibility, and fulfilment or workplace safety duties.
Looking at this snapshot of the research, it seems like a no-brainer to me. Underestimating the value of a targeted mental health and well-being strategy for the workplace is a big mistake…and responsibility starts at the top with leaders who can effect organisational change.
See here for reference list.