The Hidden Cost of Neglected Mental Health in The Workplace

A Closer Look at the Financial Consequences of Overlooking Employee Well-being

Although it is widely understood that absenteeism, decreased productivity, and high turnover eat from a business’s bottom line, few leaders are taking proactive measures to address the underlying causes of these crucial organizational challenges.

Beyond providing employment, the workplace serves as an integral facet of a gratifying life. It serves as a significant aspect of an individual's overall well-being, contributing to their sense of purpose, personal growth, and social connections.

With that in mind, employers have a responsibility to be equipped and aware of the crucial role they play in fostering a positive work environment that not only sustains professional growth and productivity but also actively contributes to the holistic well-being of their workforce.

This entails recognizing the interconnectedness of work, purpose, personal development, and social connections, ultimately cultivating a workplace culture that supports the fulfillment and satisfaction of each individual employee.

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Absenteeism

When employees are facing mental health challenges, they are more likely to take time off work. The Integrated Benefits Institute (IBI) found that for every dollar invested in employee well-being, companies can expect a return of $3.27 due to reduced absenteeism.

Productivity

Mental health challenges can significantly impact an employee's ability to focus, concentrate, and perform at their best. According to a study by the Health Enhancement Research Organization (HERO), companies with comprehensive well-being programs report a 25% increase in employee productivity.

Turnover Rate

Employees who are struggling with mental health issues may seek employment elsewhere, leading to increased costs associated with recruiting and training new staff members. The American Psychological Association (APA) reports that 80% of employees consider well-being programs when choosing an employer, contributing to talent attraction and retention.

Employee Engagement and Satisfaction

Mental health challenges can affect an employee's overall job satisfaction and engagement, leading to decreased motivation and commitment to the organization. Gallup's State of the Global Workplace report revealed that employees who are engaged in well-being programs are 27% more likely to report "excellent" performance.

The top 7 signs of an unhealthy work environment. Yasmin Refaei, Organizational Psychologist at O7 Therapy.

These common workplace stressors, among other contributing factors, have been shown to hinder long-term success and sustainability of organizations.

Controlling Leadership

Management usually bears the responsibility for setting the tone and culture of the workplace. Their leadership style, whether it is supportive and empowering or controlling and authoritarian, can greatly impact the overall work environment and employee wellbeing.

Low Empowerment

When employees feel that they have little control over their work or their role in decision-making processes, it can contribute to feelings of frustration and disengagement, which in turn stunts their opportunities for growth.

Excessive Rivalry

The work environment often fuels competitiveness among colleagues, which can create an unhealthy environment or dynamics that hinder trust, collaboration, and genuine connection.

Unrealistic Expectations

Excessive workload, unrealistic deadlines, and constant pressure to perform can lead to burnout, stress, and a decline in productivity.

Lack of Boundaries

Due to the emergence of hybrid work arrangements, boundaries between work and personal lives have become blurred. This presents itself as a unique challenge that might go unaddressed or challenged through attempts to find balance rather than proper integration.

Neglect and Sidelining

When employees feel that their skills, talents, and strengths are not fully utilized or recognized in their roles, it can also lead to feelings of frustration and dissatisfaction.

Unclear KPIs and Objectives

When employees are unsure about their roles, responsibilities, and expectations, it can create confusion, dissatisfaction, and a lack of direction in the workplace.

If you have started to see the above symptoms in your organization, you likely do not have a comprehensive employee wellbeing policy in place. An effective employee wellness policy goes beyond traditional healthcare benefits and addresses the different aspects of physical, mental, and social health.

Become An Employer of Choice

Cultivate an environment where your people can produce, learn, and thrive by applying a comprehensive employee wellbeing policy.

Contact corporate@o7therapy.com to know more about our spectrum of scientific employee wellbeing interventions.

The Hidden Cost of Neglected Mental Health in The Workplace

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