Does poor mental health impact the bottom line?

U.S. survey finds 'undeniable, direct correlation'

Does poor mental health impact the bottom line?

The mental health status of employees has declined, with the number of U.S. workers feeling depressed or anxious at least once per week jumping to 34 per cent in 2022 from 20 per cent in 2020.

And almost three-quarters (71 per cent) of employers think it’s having a negative financial impact on their company, according to the survey by Hartford Financial Services Group.

“Our data shows an undeniable, direct correlation between employee mental well-being, mental health support, and the impact to a company’s bottom line,” says Christopher Swift, Hartford’s chairman and CEO.

“Employers who want a contemporary, inclusive workplace that supports its people should proactively invest in mental health, with an eye to empathy and equity. The need is real, and the time is now.”

More than half (53 per cent) of workers believe their work is suffering because of poor mental health, according to a previous report.

Worker-employer disconnect

One possible reason? The number of employers providing employee assistance programs (EAPs) dropped to 30 per cent in February 2022 from 54 per cent in March 2020.

It seems employers are largely unaware they are not doing enough to support workers, found Hartford’s survey of 501 employers and 1001 U.S. workers in February:
 

  • 82 per cent of employers say their workforce has more access to mental health resources than in previous years; 50 per cent of workers agree.
  • 82 per cent of employers say they have an open and inclusive environment that inspires dialogue about mental health; 48 per cent of workers agree.
  • 81 per cent of employers say leadership at their company encourages conversations about mental health; 48 per cent of workers agree.
  • 80 per cent of employers say workers have flexibility in their schedule to get the mental health help they need; 53 per cent of workers agree.
  • 79 per cent of employers say mental health has improved thanks to the company’s resources; 35 per cent of workers agree.

Almost two-thirds (61 per cent) of employees say their employer does not offer any mental health supports to workers, according to another study.

What to do?

Prompted in part by the pandemic, the escalating mental health crisis is pressing because it is one of the more difficult workplace issues to address, according to Laura Dowling, senior human resources consultant at Axcet HR Solutions.

“The best way to help employees with stress, depression, anxiety or other types of mental health conditions is to first be proactive; that is to say, by anticipating that there very well could be (and likely are) individuals in need of support in this capacity, it is a good idea to be prepared in terms of offering people access to needed resources, such as an employee assistance program (EAP), if one is available.”

Here are other things that employers can do, she says:

  • If an employee makes you aware that they are experiencing a mental health-related issue, open the lines of communication in a sensitive, tactful and empathetic way.
  • Educate managers on how to recognize the signs of mental distress and how to handle emergent issues of this nature, and then give them the tools they need to offer the right kind of support.
  • Ensure that your company culture emphasizes well-being.
  • Offer flexible scheduling options.

What’s the best way to support employees’ mental health? Flexibility, according to another study.

As many employers start to call their staff back to the office, the Ontario Association of Social Workers (OASW) is calling on all Canadian companies to provide at least $1,500 for employees’ mental health benefits.

Read more: 85% of employees overlook mental health benefits, survey reveals

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