Investing in employee mental health boosts the bottom line, Deloitte study finds.
What is one way to increase profits? Decrease expenses, right? That generally holds true, but it’s not the case when it comes to employee mental health. Research recently conducted by Deloitte has found that employers who spend more money on mental health support for their staff tend to become more profitable in the long run.
Just how much more profitable? The Financial Post reports, “For every dollar spent, the median return on investment is $1.62 by the third year and increases over time.” This may seem counterintuitive at first, but it makes sense when you think about it. Employees who aren’t dealing with anxiety, chronic stress, depression, and so on tend to be more focused and productive. They take fewer sick days, collaborate better with their colleagues, and pour more energy into their work.
The report lists the following key findings:
- Spending money on mental health initiatives saves employers money
- Prioritizing investment in training and preventative measures can further increase the return on investment
- Employers often fail to track the outcomes of their mental health spending
- There are many existing services and resources to help employers get a head start on building their workplace mental health programs
Of course, it goes without saying that prioritizing employee wellness is the morally right thing to do for any organization; the argument is only strengthened by the overwhelming financial benefits. Mentally healthy workers save their employers from having to pay for costly expenses, including but not limited to medication and disability leave. It’s estimated that approximately 500,000 Canadians miss work at some point in their careers due to mental health challenges. This puts a roughly $56-billion strain on the economy.
The three-year study by Deloitte tracked seven large companies that have significantly invested in employee mental health. One of these organizations was Bell, which happens to be a long-time LifeSpeak client. The research concluded that in the last seven years Bell has enjoyed a positive return on investment due to their commitment to improving the mental health of their staff. Other well-known employers in the report include Air Canada, CIBC, and Morneau Shepell.
Learn how LifeSpeak supports workplace mental health
Our digital library of expert content contains 2000+ videos, podcasts, and tipsheets on dozens of mental health topics ranging from stress management to overcoming anxiety. If you’d like your organization to join an esteemed roster of companies caring for their employees’ well-being, book a free demo of the LifeSpeak platform today.