Mental health is a top concern in workplaces, and with increasing burnout, layoffs, and concerns about employee retention, it makes sense that data-driven employers are planning to invest in this area. Consider:
- Two out of three U.S. employers say they plan to make employee mental health, and the emotional well-being programs and solutions that support it, one of their top three health priorities over the next three years, according to a survey of 455 U.S. employers.
- The majority of workers—eight in 10—are reportedly seeking workplaces that offer mental health support, according to a survey of employees from the American Psychological Association.
- For every employee experiencing mental distress, employers incur an estimated $15,000 per year in lost productivity, healthcare costs, and turnover.
When building workplace wellness programs, how do you know where to invest your dollars? For something like wellness in the workplace, the results are often measured in risk mitigation and hypothetical future dollars saved, rather than avoided costs. This is even more difficult when evaluating mental and emotional well-being programs, as the costs of poor mental health are typically less direct.
Making a business case for a corporate mental health program involves demonstrating the potential benefits and return on investment (ROI) that such a program can provide to the organization. Here's how you can approach it.
Productivity and Performance:
Mental health issues can significantly impact employee productivity and performance. Present statistics and research findings that show how investing in mental health programs can lead to reduced absenteeism, presenteeism (employees being present but not fully productive), and turnover rates. Emphasize how addressing mental health concerns can improve employee morale, engagement, and overall performance.
9 in 10 CEOs say they’re concerned about employees having the mental strength to respond to changes (Source)
Cost Savings:
Mental health issues can increase healthcare costs for the organization due to medical expenses, disability claims, and insurance premiums. Illustrate how investing in mental health programs can save costs by reducing healthcare utilization, lowering insurance premiums, and minimizing the need for disability accommodations and claims.
The National Alliance on Mental Illness estimates that serious mental illness causes workers who don’t receive adequate treatment $193.2 billion in lost earnings each year. (Source)
Employee Retention and Recruitment:
A corporate mental health program can enhance employee retention by creating a supportive work environment that values employees' well-being. Highlight how organizations with robust mental health initiatives are more attractive to job seekers and can better retain top talent, thus reducing recruitment and training costs associated with high turnover.
81% of workers reported that they will be looking for workplaces that support mental health in the future. (Source)
Risk Mitigation:
Failure to address mental health issues in the workplace can lead to legal and reputational risks for the organization, such as discrimination claims, regulatory penalties, and negative publicity. Demonstrate how implementing a mental health program can mitigate these risks by promoting compliance with relevant laws and regulations, fostering a positive corporate culture, and enhancing the organization's reputation as an employer of choice.
Employee Satisfaction and Well-being:
A corporate mental health program can improve employee satisfaction and well-being by providing access to resources and support services that address mental health concerns. Highlight how investing in employees' mental health can contribute to a positive work culture, enhance employee morale, and foster a sense of loyalty and commitment to the organization.
80% of employees who receive treatment for mental illness report improved efficacy and satisfaction at work. (Source)
Alignment with Corporate Values and Social Responsibility:
Positioning a mental health program as part of the organization's commitment to corporate social responsibility and employee well-being can resonate with stakeholders and decision-makers. Emphasize how investing in mental health initiatives aligns with the organization's values, mission, and long-term sustainability goals.
By addressing these key points and providing compelling evidence and data-driven arguments, you can make a strong business case for implementing a corporate mental health program.
