Psychological Health & Safety

Unmitigated mental health issues in the workplace can have long term and very costly implications. Key statistics include the following:

• According to Canadian Mental Health Association, in any given year, 1 in 5 people in Canada (equates to 7.5 million Canadians in 2018) will personally experience a mental health problem or illness. By age 40, about 50% of Canadians will have or have had a mental illness. A2017 Sun Life Financial’s national survey on mental health found that while nearly half of all Canadians (49%) have experienced a mental health issue that have impacted their lives, only 28% of working Canadians living with a mental health issue have spoken to their employer about it.
• The staggering economic cost of workplace stress and related mental health issues to the public and industry (lost productivity) to the Canadian economy has grown steadily to well over $51 billion Over the next 30 years, the total cost to the Canadian economy will have added up to more than 2.5 trillion.
• About 4%of the working population in Canada currently experience mental health problems and illnesses, which can affect their productivity. In the workplace, issues with unattended mental health concerns can cost Canadian businesses more than $6 billion in a given year in lost productivity from absenteeism, presenteeism and turnover. A 2014 study involving over 1000 employees across different industries found that over 80% of respondents have gone into work when they were not able to perform as well as they would have liked and there is indication that lost productivity from such presenteeism – time spent at the workplace while not productively engaged in work – is 7.5 times greater, possibly costing Canadian businesses much more than $6 billion a year.
• Mental health problems and illnesses also account for approximately 30% of short and long-term disability claimsand are rated one of the top three drivers of claims by more than 80% of Canadian employers.
• Some key driversof absenteeism and presenteeism reported are physical sickness, stress and anxiety, depression, and issues related to one’s work, work environment, co-workers, or managers. A 2017 World Health Organization (WHO) research report indicates that depression and anxiety is estimated to have cost the global economy is US$ 1 trillion per year in lost productivity.

One’s wellness is actually made up of multiple dimensions. In many cases, an employee who is having difficulties in one dimension (e.g. social) could also experience negative effects in other dimensions (e.g. physical and emotional), resulting in them facing more challenges and being less able to function or perform optimally. As such, a holistic approach to caring for employees’ multiple dimensions of wellness will likely be more effective in strengthening their resiliency to cope with life stressors, remain productive, and realize their potential. With appropriate intervention and effective support, not only can employees’ wellness and productivity be directly enhanced, there can also be significant return on investment:

• A study led by World Health Organization estimated that for every USD $1 put into scaled up intervention and support for common mental issues, there is a return of USD $4 in improved health and productivity. Further research found that employees who receive direct intervention are 40% more likely to recover from depression.
• Recent Deloitte analysis found that for every $1 invested in workplace mental health, the median yearly return for Canadian employers was $1.62, a figure that rises to $2.18 for programs that have been in place for three years or more.
• A critical meta-analysis of the literature completed by Health Affairs concluded that “medical costs fall by about $3.27 for every dollar spent on appropriate wellness programs and absenteeism costs fall by about $2.73 for every dollar spent.” The Citibank Health Management Program reported an estimated savings of $4.50 in medical expenditures per dollar spent on medical prevention programs.
• A 2014 survey by Virgin Pulse involving 361 organizations and 3,822 employees reported that 88% of employees describe “access to health and wellness programs as an important factor for defining an employer of choice.”
• Research indicates that if we just reduce the number of people experiencing a new mental illness in a given year by 10%, after 10 years we could be saving the Canadian economy at least $4 billion a year.