A global study has found that when organisations prioritise well-being, they are 4 times less likely to lose talent within the next year.
World Economic Forum (2010). The wellness imperative: Creating more effective organizations.
Business case
Help make the business case for workplace well-being initiatives in your organisation using this collection of statistics on mental health at work, collated by the Future of Work Institute. Tailor your business case according to outcomes that are important to your business, by searching the ten categories below.
Individuals not being appropriately supported can have a flow on effect to co-workers if problems continue to be un-managed e.g. without the right adjustments in work, an employee may require time off. This means co-workers have increased workload, and there are turnover costs from recruitment and training new employees when someone is taking time off or leaves the organisation.
In a review of organisational case studies PwC found that 18 case studies noted a reduction in turnover (due to improved retention and/or return to work rates) due to well-being interventions. The average reduction in turnover was 20-25%.
An Australian costing study found the greatest costs of depression among working people were incurred by employers (far exceeding healthcare costs), with turnover costs figuring more prominently than presenteeism and absenteeism costs.
The turnover cost of poor mental health includes employers finding a new employee and making them fully effective.
“In the United Kingdom, of the 300,000 people leaving their jobs in a quarter:
- 3% have no long term mental health conditions and lose their job after one quarter
- 4% have a constant long term physical condition and lose their job after one quarter
- 6% have long term mental health conditions and lose their job after one quarter
These results indicate that individuals with mental health concerns are more likely to lose their job than those without mental health concerns or those with physical health concerns”.
Building a mentally healthy workplace is associated with decreased turnover and selection costs.
Survey results indicate that 44% of Australian employees aged 30-39 see a mentally healthy workplace as essential or very important.
Young workers are more likely to leave a job because they consider the workplace a mentally unhealthy environment. This suggests that creating mentally healthy workplaces is going to become increasingly important as younger workers move through the workplace.
Almost half of Australian employees surveyed have left a workplace because it had a poor environment in terms of mental health.
Survey results found that a mentally healthy workplace that was both friendly and supportive, and promoted and protected the mental health of its employees was the second most powerful inhibitor of a worker leaving their job.
Costs associated with not addressing psychological health and safety in the workplace can include costs and time related to: stress-related illnesses, absenteeism, presenteeism, turnover, short- and long-term disability, benefit utilisation rates, workers’ compensation claims, return to work and accommodation, employee and family assistance plan use, workplace grievances, workplace conflict, health and safety infractions, human rights violations, and adverse events.
Turnover costs can be reduced by investing in mental health initiatives to create a mentally healthy workplace.
Economic analyses consistently show that mental health conditions are costing Australian businesses between $11 and $12 billion each year (through absenteeism, reduced work performance, increased turnover rates, and compensation claims.