For companies looking to up their benefits game, investing in employee mental health should be a no-brainer. According to the American Psychological Association (APA), work stress is among the top 3 stressors in American lives today. Addressing stress, anxiety, or any other mental health condition experienced by your employees is critical. Still, like any investment you make, you want reassurance on the ROI of your investment. Calculating estimated returns can ensure you’re making strategic investments that will effectively lower healthcare costs, enhance productivity, and reduce absenteeism organization-wide (among a host of other benefits).
The cost of mental health is staggering. On average, companies today spend over $15,000 per employee annually on mental health-related concerns. That said, the growing importance of highlighting mental well-being in the workplace goes beyond just cost-savings.
Savvy employers are beginning to recognize the significance of addressing and offering mental health support — and now, you can quantify your investment with a cost-savings calculator that demonstrates the ROI you can expect.
Why investing in mental health makes business sense
While it’s true that investing in mental health benefits can be seen — on some level — as a moral obligation, there’s much more to it than simply being “the right thing” to do.
The investment makes solid business sense and can reduce expenses and enhance employee well-being and productivity. Research finds that employers that support mental health see a return of $4 for every $1 they invest in treatment.
Businesses can realize 3 core areas of savings by implementing strategies that support mental health in the workplace:
- Medical savings: Better mental health among employees means fewer medical bills and claims that can otherwise drive up your total cost of care. When mental health is addressed and managed effectively, employees typically see less frequent and less costly medical interventions like doctor visits, hospitalizations, or prescription medications.
- Time savings: A healthy mind can translate to improved productivity. With access to support, employees are more likely to get tasks done faster and better, reducing downtime at work. Employees with optimal mental health will be more focused and efficient. They’re also less likely to take time off work or need extended leave due to mental health-related issues.
- Absenteeism reduction: Mental health is a leading cause of high employee absenteeism rates. Some research suggests that people with poor mental health might have up to 4 times more unplanned absences from work. High absenteeism rates can have a significant impact on businesses, resulting in reduced productivity and increased costs related to hiring replacements — temporary or permanent — or covering the cost of paid time off (PTO).
Additional benefits to providing mental health support in the workplace
Beyond the obvious financial benefits, there are other considerations when making decisions about mental health initiatives in your organization.
While these perks may not immediately translate to dollars on the bottom line, they hold significant value in shaping a positive workplace culture. This can, in turn, lead to lower turnover and happier employees. It can create a trickle-down effect with benefits like increased productivity, reduced cost to hire and train new people, improved job satisfaction, and an enhanced positive company reputation (which is huge in being able to attract stellar top talent).
In short, offering mental health benefits in your organization can result in:
- Reduced attrition
- Increased productivity
- Improved employee satisfaction
- Increased ability to attract and retain new talent
- Prevention of future mental health challenges
- Reduced stigma attached to needing help
Medical savings and the financial impact
According to studies, more than half of adults (54.7%) with mental health issues don’t get the treatment they need — and 50% of Talkspace members are seeking care for the first time.
Why is this important? It means that instead of getting help, many workers are likely going to the ER or urgent care and are spending out-of-pocket to seek emergency help — all of which can ultimately drive up claims and medical spend.
By offering mental healthcare through an online provider like Talkspace, you can save money, in part by avoiding claims.
Time savings and the financial impact
Poor mental health can harm productivity in the workplace and cost businesses more over time. For example, employees living with depression, on average, lose close to 5.6 hours of productivity per week. Introducing access to care can lead to enhanced time savings.
There are many factors linking mental health to reduced productivity and higher costs. A glaring concern is the shortage of mental health professionals in the United States. More than a third of adults in the U.S. have to wait weeks before seeking treatment. Lack of access to a qualified professional often means long wait times for treatment, which can result in condition-progression that can ultimately make treatment more difficult and take longer.
As a result of being unable to get appointments, we’ve seen an overwhelming uptick in telehealth services. The American Psychiatric Association (APA) states that almost 40% of Americans have used virtual care and telehealth to meet with a medical or mental health professional (up from 31% in the fall of 2020).
Time saved = productivity
Investing in mental health care can increase efficiency and productivity through time savings. Considering that the average person seeking help for a mental health condition might need around 7 therapy sessions, offering quick and convenient access to care means less time away from the job while healing occurs.
The total time saved can be substantial when treatment is offered through a virtual platform or solution like Talkspace.
Absenteeism and the financial impact
Absentee workers can put a significant dent in your organization’s productivity rate. The effects of absenteeism are much more far-reaching than just output, though. Research by The Centers for Disease Control (CDC) links absenteeism to productivity loss that costs U.S. employers an estimated $225.8 billion — or $1,685 per employee — per year.
The good news, however, is there are effective ways to address the mental health needs of workforces. Talkspace and Columbia University researchers found that employees with anxiety and depression missed 50% fewer work hours after just 12 weeks of virtual support and therapy.
Even more exciting, their productivity — measured by self-reported ability to complete job-related tasks — increased by 36%.
Recap: Benefits of adding mental health benefits
The rewards for employers that invest in mental health benefits for their workforce are substantial.
Companies can save big on medical claims. They can also realize increased time savings through increased productivity. There’s also the benefit of absentee savings when employees are at their jobs and fully functioning.
Finally, increasing overall job satisfaction and harnessing a competitive advantage by being able to attract and retain high-caliber talent can offer noteworthy, tangible ROI.
Simply put: partnering with Talkspace to provide your employees with easy, affordable, convenient access to mental healthcare can improve your bottom line. Show your executive leadership team the value and ROI of these added benefits with our easy-to-use ROI calculator, demonstrating the power of mental health benefits in any organization.
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Sources:
- “Stress in America.” American Psychological Association. Accessed October 28, 2023. https://www.apa.org/news/press/releases/stress/.
- “New Mental Health Cost Calculator Shows Why Investing in Mental Health Is Good for Business.” National Safety Council, May 13, 2021. https://www.nsc.org/newsroom/new-mental-health-cost-calculator-demonstrates-why.
- Witters, Dan, and Sangeeta Agrawak. “The Economic Cost of Poor Employee Mental Health.” Gallup.com, November 3, 2022. https://www.gallup.com/workplace/404174/economic-cost-poor-employee-mental-health.aspx.
- “Mental Health by the Numbers.” NAMI. Accessed October 28, 2023. https://www.nami.org/mhstats.
- “BAD FOR BUSINESS: The Business Case for Overcoming Mental Illness Stigma in the Workplace.” THE NATIONAL ALLIANCE ON MENTAL ILLNESS OF MASSACHUSETTS. Accessed October 28, 2023. https://namimass.org/wp-content/uploads/BAD-FOR-BUSINESS.pdf.
- “Worker Illness and Injury Costs U.S. Employers $225.8 Billion Annually.” CDC Foundation, January 28, 2015. https://www.cdcfoundation.org/pr/2015/worker-illness-and-injury-costs-us-employers-225-billion-annually.