Mental Health Week Can Your Business Afford to Ignore Mental Health?
We investigate the key impacts, costs, AND savings to companies of mental health at work.
Mental health has increasingly been highlighted as a key factor in business and employee performance, success and productivity.
This year’s Mental Health Week has special importance with the global fight against covid sars 2. Millions of workers, everywhere, across the world have been impacted.
Some working remotely, some furloughed. Some facing redundancy. Some already recently made redundant.
People’s work suroundings and working conditions have been turned upside down in just a few, short months, and whilst efforts to crank up the wheels of industry are in motion, the working landscape is likely to have been changed forever.
Nearly 1 in 7 people, almost 15% suffer some degree of mental health problems at work.
Men in full time employment are half as likely as women to experience mental health problems.
Nearly 13% of all staff absences in the UK can be attributed directly to mental health conditions.
According to research, improvements to mental health frameworks at work could equate to over £8bn in savings for UK businesses alone!
In today’s uncertain ecconomy, business owners, Finance Directors and senior management are more conscious than ever to seek good returns on investment and save money and more importantly improve staff engagement, morale and resilience.
What better way than to invest in staff?
But what are the cost benefits? How can this improve my balance sheet and company performance?
According to The Mental Health Foundation, workplace interventions including employee screening and care management strategies for those living with (or at risk of) depression was estimated to cost £30.90 per employee for assessment, and a further £240.00 for the use of CBT to manage the problem, way back in 2009 alone.
An economic model conducted in a company of 500 employees where two thirds are offered and accept the treatment, an investment of £20,676 will result in a net profit of approximately £83,278 over a two year period.
So, how can employers, HR teams, business leaders put in place policies to effectively improve employee wellbeing and mental health in their workforce?
Make it personal.
- Employ personalised, tailored information for staff
- Create bespoke advice specific to your staff, your business and working environment
- Create risk assessment questionaires
- Encourage staff to watch online seminars
- Implement online workshops using experts
- Use experts. You don’t have to do this alone. Use businesses like Precise HR Ltd, who can give honest, tailored advice specific to your company, workforce, industry and importantly, your budget!
The cost?
Approximately £80 for every employee, for 12 months.
The saving?
According to the Mental Health Foundation, for a company with 500 employees, where all employees undergo interventions, it is estimated that an initial investment of £40,000 will yield a net return of £347,722 in savings. Mostly due to reduced presenteeism (lost productivity caused by an employee working while ill) and absenteeism (work hours missed due to ill health).
In another article by Michael Parsonage and Geena Saini, their report highlights that mental health problems in the UK workforce cost employers almost £35 billion just 3 years ago.
They broke down the overall costs as follows: –
- £10.6 billion in sickness absence;
- £21.2 billion in reduced productivity at work, or ‘presenteeism’
- £3.1 billion in replacing staff who leave their jobs because of their mental health.
So, conclusively, the costs of ignoring mental health for your employees, simply can’t be ignored.
More useful links for detailed reports, information and advice on Mental Health issues: –
The UK Government’s Latest Advice on Mental Health and Wellbeing
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References
Lelliott, P., Tulloch, S., Boardman, J., Harvey, S., & Henderson, H. (2008). Mental health and work. Retrieved from gov.uk/government/uploads/system/uploads/attachment_data/file/212266/hwwb-mental-health-and-work.pdf
Stansfeld, S., Clark, C., Bebbington, P., King, M., Jenkins, R., & Hinchliffe, S. (2016). Chapter 2: Common mental disorders. In S. McManus, P. Bebbington, R. Jenkins, & T.Brugha (Eds.), Mental health and wellbeing in England: Adult Psychiatric Morbidity Survey 2014. Leeds: NHS Digital.
ONS. (2014). Full Report: Sickness Absence on the Labour Market, February 2014. Retrieved from webarchive. nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/ons/dcp171776_353899.pdf [Accessed 28/07/16].
Sainsbury Centre for Mental Health. (2009). Briefing 40: Removing Barriers. The facts about mental health and employment. Retrieved from ohrn.nhs.uk/resource/policy/TheFactsaboutMentalHealth.pdf
Knapp, M., McDaid, D., & Parsonage, M. (2011). Mental Health Promotion and Mental Illness Prevention: The Economic Case. Retrieved from gov.uk/government/uploads/system/uploads/attachment_data/file/215626/dh_126386.pdf [Accessed 02/07/16].
Knapp, M., McDaid, D., & Parsonage, M. (2011). Mental Health Promotion and Mental Illness Prevention: The Economic Case. Retrieved from gov.uk/government/uploads/system/uploads/attachment_data/file/215626/dh_126386.pdf [Accessed 02/07/16].
