Return on Investment - Workplace Wellbeing
Is investing in mental health training or wellbeing programs in the workplace good value for money? Not only is prioritising mental health in the workplace best practice, it can also yield significant returns on investment (ROI) for businesses. In this blog post, we will explore the potential benefits of implementing mental health initiatives (such as Mental Health First Aid Courses), as highlighted in Deloitte's insightful article, "Interested in a 5x ROI? Consider Mental Wellness Initiatives."
We've heard that it's important for businesses to invest in mental health in the workplace. Work-related stress can have a big impact on both the health and productivity of employees. According to PwC, the cost to businesses due to stressed-out employees being absent or not performing well is around $12 billion per year. The National Mental Health Commission found that employees dealing with job-related stress and mental illness are typically absent from work for almost 11 weeks each year in Australia. As employers, it's crucial to figure out where to focus our efforts, how much to invest, and what kind of return we can expect when we put funds and resources into improving workplace mental health.
Understanding the ROI of Mental Health Training
When a company invests in programs that support the mental health of its employees, it's like planting seeds for a thriving garden. Deloitte's research says that for every dollar spent on these programs, the company gets back around $5.30 on average. That's a fivefold return.
Now, why does this happen? Mental health initiatives are not just about making employees feel good temporarily; they can have a lasting impact, as long as they’re rolled out appropriately (not simply a tick box). Picture it this way: a workplace where people feel valued when workplace stress is managed effectively, the stigma associated with mental illness is reduced and there's a positive and supportive atmosphere. In such an environment, employees are likely to bring their best selves to work each day. This positive energy translates into improved productivity, better teamwork, and enhanced overall job satisfaction.
The ripple effect continues beyond individual wellbeing. Engaged and satisfied employees contribute to a healthier organisational culture, which, in turn, positively influences business outcomes. It's not just about the initial investment; it's about nurturing an ecosystem within the company that yields ongoing benefits.
So, in essence, the ROI of mental wellbeing isn't just a financial return; it's an investment in the overall health and prosperity of the organisation. The numbers tell a story of a workplace where people flourish, and as a result, so does the business.
Declining Mental Health - The Cost at Work
Employers are facing increasing costs due to declining mental health among employees. Currently, nearly one in six Australian workers (13.2% of males and 16.1% of females) experience significant mental ill-health in four weeks, necessitating time off work. This equates to approximately 18.7% of the workforce experiencing such levels of mental ill-health over a year.
In terms of workers' compensation claims, mental illness accounted for 6% of all claims in 2014-15, with affected employees taking longer periods off work compared to other claims (15.3 weeks versus 5.5 weeks) and incurring higher average costs per claim ($24,500 versus $9,000). This trend has continued, with mental health conditions accounting for 9.2% of serious claims in 2021-22, representing a notable increase from previous years. Over the past decade, the number of serious claims for mental health conditions has grown by 43.3%, underscoring the escalating impact of mental health issues in the workplace.
Despite efforts to address mental health in the workplace, the median time lost and compensation paid for mental health condition claims in 2020-21 were still four times higher than the median across all claims. This highlights the persistent challenge and substantial impact of workplace mental health conditions on both employees and employers.
Company Benefits of Mental Health Initiatives at Work
Boosting Employee Productivity
Mental Health and Wellbeing initiatives create an environment that supports employees in managing stress, reducing the stigma associated with mental illness, maintaining work-life balance, and fostering a positive mindset. By addressing mental health concerns, organisations can significantly enhance employee productivity. Truly embedding mental health support in the workplace goes beyond Mental Health First Aid training (or similar), it’s a great starting point, but we also need to address issues in the workplace that could contribute to psychosocial injuries or stressors - as these may lead to mental illness.
Depression and anxiety are the leading cause of disability globally, impacting over 300 million individuals worldwide. In the absence of strategic prevention and intervention measures practices by organisations, employees often grapple with hesitance towards seeking assistance or acknowledging their need for support. We know that stigma plays an enormous role in people not seeking help when they need it. Workplaces play a role in reducing stigma associated with mental ill health, a person cannot simply leave part of themselves at home when they come to work. So how can workplaces best support someone who is experiencing a mental illness? Our consultants can work through this with your team.
When employees feel mentally and physically well, they are better equipped to focus on their work, make sound decisions, and contribute meaningfully to their teams.
Driving Employee Engagement
A workforce that feels valued and supported is more likely to be engaged and committed. Mental Health and Wellbeing Initiatives demonstrate an organisation's commitment to its employees' wellbeing, leading to increased job satisfaction and loyalty. Engaged employees are known to be more innovative, collaborative, and dedicated to achieving organisational goals.
Imagine you work for a company that not only cares about what you do but also cares about how you feel. When a company shows it values and supports you, it's like having a really good friend at work. This makes you happy, right?
Now, think about the company doing things to support your mentally health —maybe they have stress-busting activities, support programs, or just a friendly environment. It's like your workplace is saying, "We want you to be your best self here."
When a company does these things, it's not just because they're nice (although that's part of it). It's because they know that when you feel good, you're more likely to really get into your work. You become engaged, which means you're not just doing your job for the paycheck; you're doing it because you genuinely care about it.
Now, here's the cool part: when a whole bunch of people in a company feel this way, it's like magic for the business. Engaged employees are like a team of superheroes—they come up with awesome ideas, they work together really well, and they're super
Reducing Absenteeism and Presenteeism
Mental health challenges can significantly impact employee attendance and performance. By addressing these challenges through mental wellness initiatives, organisations can reduce absenteeism and presenteeism—the phenomenon of employees being physically present but not fully productive due to mental health concerns. Creating a culture that supports mental well-being can lead to decreased rates of unplanned absences and increased employee effectiveness. Presenteeism: In contrast to absenteeism, more "Being There" When Unwell: Instead of not showing up, some employees work even when they're sick, which actually makes them less productive.
This phenomenon has a profound impact. Around 81% of work not done well is because of this. And around 80% of the money lost because of bad work is because of this too. This is way more than if they just didn't come to work.
Attracting and Retaining Top Talent
Post-COVID is a competitive job market, people have a choice on who they want to work for. So competition is high for organisations that want to attract and retain top talent. One aspect that prospective employees may look for is organisations that prioritise mental health and wellbeing differentiate themselves as employers of choice. Forward-thinking candidates seek workplaces that value their holistic wellbeing, including their mental, social emotional and physical health - after all you employee the entire person.
By implementing mental wellness initiatives (that go beyond a yoga class and fruit bowl), organisations can attract top talent and retain their valuable employees, reducing recruitment and training costs. After all, research tells us that at least 1 in 5 people will live with a mental health problem in any one year. Wellbeing initiatives can look like training, professional development initiatives, flexible working conditions, positive workplace culture and more.
Nurturing a Positive Organisational Culture
Mental wellbeing initiatives contribute to fostering a positive and inclusive organisational culture. By proactively addressing mental health concerns, organisations create a supportive environment where employees feel safe to seek help and share their challenges. This inclusive culture fosters collaboration, innovation, and mutual support among team members, resulting in a thriving workplace.
When a company actively supports mental health, it's like saying, "We care about you, and we're here to help." This creates a culture where everyone feels included and valued. It's like being part of a team that has each other's backs.
Now, why does this matter? Because in a workplace where people feel safe and supported, they're more likely to work together like a dream team. They share ideas, help each other out, and explore innovation.
When a company focuses on mental wellbeing, it's not just about each person; it's about making the whole workplace feel like a big, happy family where everyone supports each other. And when that happens, work becomes not just a place to go but a place where everyone thrives and enjoys being together.
Things to Consider Before Implementing Interventions
Before initiating any measures to enhance workplace mental health, beyondblue recommends considering six key factors:
Leadership commitment: Senior organisational leaders and business owners must demonstrate visible, long-term commitments to fostering and maintaining good mental health in their workplaces to instigate lasting positive change. We suggest conducting some leadership awareness training to enhance the leadership team’s understanding of mental illness at work.
Employee participation: Involving employees is crucial for improving mental health in the workplace. Seeking input from employees at every stage, from planning to implementation and evaluation, ensures inclusivity and effectiveness.
Policy development and implementation: Establishing clear and flexible policies forms the foundation for action. These policies should be well-articulated and adaptable to meet the specific needs of the organisation or business.
Adequate resources: Initiatives aimed at enhancing mental health in the workplace require sufficient resources to succeed. Ensuring access to the necessary resources, including financial support and staffing, is essential for implementation.
Sustainable approach: Achieving initial success is only part of the equation; sustaining progress over the long term requires ongoing dedication and effort.
Effective planning: Successful implementation hinges on careful planning. This involves defining clear goals and objectives, as well as identifying the necessary inputs such as financial resources, time, or additional staffing. A well-thought-out plan sets the stage for successful intervention.
Workplace Wellbeing Programs
In addition to enhancing mental health, workplace wellbeing programs promote physical health through activities like fitness classes, health coaching, and ergonomic assessments. Wellbeing Campus supports organisations in implementing these initiatives while embedding a culture of wellbeing. By addressing psychosocial risks alongside wellbeing efforts, companies can mitigate stress and anxiety, boosting productivity and engagement. These programs also foster higher morale and employee satisfaction, leading to a positive company culture and lower turnover rates. Though there may be initial costs, the long-term benefits, such as reduced absenteeism and healthcare expenses, offer significant ROI. Investing in workplace wellbeing programs improves both mental and physical health, ultimately enhancing productivity, engagement, and overall organisational success.
Recommended workplace wellbeing interventions:
Mental Health Training: Provide comprehensive training for staff and managers to recognise signs of mental distress, manage mental health-related issues, and support employees effectively. This could be Mental Health First Aid, Mental Health Literacy for Managers and Leaders or bespoke courses specifically for your sector.
Flexible Work Arrangements: Offer options such as flexible hours and telecommuting to accommodate employees' needs and promote work-life balance.
Employee Assistance Programs (EAPs): Provide confidential counselling services and resources to support employees experiencing mental health challenges.
Job responsibilities and Expectations: Ensure clear communication of job roles, responsibilities, and expectations to reduce stress and uncertainty.
Workplace Health Promotion: Offer wellness programs promoting physical activity, healthy eating, and stress reduction techniques to support overall mental well-being.
When evaluating the return on investment (ROI) of workplace wellbeing programs, it is important to consider the long-term benefits. While the cost of implementing these programs may seem high in the short term, the long-term benefits in terms of reduced absenteeism, improved productivity, and lower healthcare costs can lead to significant cost savings for organisations.
Workplace wellbeing programs are a valuable investment for organisations. By improving the physical and mental health of employees, these programs can help to reduce stress, improve productivity, and increase engagement and morale. If you are considering implementing a workplace wellbeing program, it is important to consider the potential long-term benefits and ROI of these programs.
Contact us today to discuss the unique needs for your organisation.