6 Ways Investing In Mental Health Pays Off For Business And People

Forbes

2 days ago

The business case for mental health is compelling.
Mental health challenges are intense and increasing both in the US and globally. They have huge costs for people and business, but there are also significant benefits when organizations invest in improving mental health.
The business case is compelling. Making investments in mental health is the right thing to do for people, and also for business.
The Business Case for Mental Health Investment
Making investments in people is the right thing for employers to do for plenty of reasons, but among them are compelling benefits for the business. Here's why.
Mental health issues are extensive today. Over one billion people globally live with mental health conditions, according to the World Health Organization. The issue is prevalent in the US as well, with 60 million Americans experienced a mental illness in the past year, based on data from Mental Health America.
Stress is also a big issue among the workforce. Fully 50% of employees feel stressed during the workday, based on data from the American Psychological Association. And according to a survey of 3,000 people by Stress in America, 27% of people said they struggled to function most days because of their stress.
A survey by LIMRA found that 75% of US workers say they have experienced at least one mental health challenge in the past year. These include suffering like depression, anxiety, grief or suicidal thoughts. In addition, 37% of people say they deal with mental health issues often.
Investments in mental health are relevant to large numbers of people generally, and in the workforce, in particular.
While mental health issues affect all age groups, young people are hit especially hard. According to Mental Health America, one in five young people ages 12-17 experienced a depressive episode in the past year. And more than half of them did not receive mental health treatment.
In addition, 91% of Gen Zs reported they were stressed and 98% said they were burned out, according to a survey by Cigna.
Investments in mental health are relevant to younger generations, especially. And Gen Z represents the future of the workforce.
Mental health challenges also have broad negative impacts from lost productivity and absenteeism to presenteeism and increased medical costs.
One day per month of poor mental health was associated with a 1.84% drop in the per capita real income growth rate, resulting in $53 billion less total income each year. This was according to a study by Penn State, published in the Review of Regional Studies. Specifically,
A meta-analysis published in the Applied Health Economics and Health Policy journal looked at 38 different studies over 12 years and found that when people struggle with mental health, they are more likely to be absent and disengaged and they tend to be less productive.
In addition, estimates suggest that depression costs US employers about $105 billion annually based on treatment expenses, healthcare, turnover and absenteeism. This is according to McKinsey.
Investments in mental health help avert the significant negative effects that arise from mental health challenges.
But the good news is that when companies invest in mental health, they see a positive return.
A study by the Workforce Institute at UKG which included 3,400 people across 10 countries, found when people have positive mental health, 63% say they are committed to their work and 80% say they're energized.
In addition, a study published in PLOS One found that when organizations offered training for mangers and leaders in mental health, there was an improvement in attraction, retention, customer service and business performance. In addition, they saw a reduction in long term absence due to mental health issues.
In a meta-analysis, employers that invested in both physical and emotional wellbeing experienced a 5% increase in productivity based on a study by the University of California, Riverside. And each dollar spent on wellness programs saved $3.27 in health care costs and $2.73 in absenteeism costs.
According to an article published in the Journal of Occupational and Environmental Medicine (JOEM), when organizations offered support for both mental helath and physical health, they saw reduced absenteeism, reduced presenteeism (people who were present at work, but not productive) and increased job performance.
Investments in mental health are linked with significant positive outcomes for business.
Mental health is also a good investment when you consider ROI more generally.
A study published in JAMA Open Network found that for almost 14,000 participants, every $100 invested in behavioral health offered a return of $190 in reduced medical claims costs.
In addition, a Deloitte study, demonstrated ROI of $1.62 in the shorter term, and $2.18 when mental health support programs were in place for three years or more, because they delivered increasing returns as they matured.
Investments in mental health deliver ROI.
Finally, when we consider scaling mental health interventions across nations, McKinsey estimates the impact is $4.4 trillion in GDP by 2050. Further, they expect scaling mental health solutions to enhance the ability of 60 million people to participate in the labor force, globally.
Strategies such as increasing access to mental health support can reduce absences and also result in decreased morbidity and mortality. Scaling mental health solutions can also positively impact caregivers.
Investments in mental health at scale positively impact GDP and expand opportunities for people.
Invest in Mental Health for Business Pay Offs
With the mental health challenges people face in both their personal and professional lives, employers have an increasing role to play. Strategies like thinking long term; delivering comprehensive wellness offerings; intervening early with preventative approaches; maintaining and sustaining efforts over time; and tracking, monitoring and continuously improving outcomes all have a positive impact.
We can choose to implement mental health programs and policies because it's the right thing to do for people. And we can also choose to invest in mental health because of the compelling business case for employers and economies.