Research shows a noticeable financial return on investment (ROI) for organizations that actively engage in well-rounded, effective strategies for workplace psychosocial risk mitigation and control, wellness promotion and injury prevention as well as early intervention for psychological issues and strains.
Employers that support mental health see a return of $4 for every $1 dollar invested in mental health treatment, according to new research released today from the National Safety Council (NSC) and NORC at the University of Chicago. This 4 to 1 ROI has also been shown in other studies. Bell also reported their ROI of $4.10 for every $1 dollar they invested in workplace mental health programs – this included a 50% drop in disability relapse and reoccurrence within 8 years.
Manulife’s 2022 Wellness Report reveals that the top 3 organizations (in a survey group of 47 organizations and 4,921 employee respondents) that scored highest in health workplace culture and wellness initiatives achieved noticeably better results than other organizations as a whole, in the following key health indicators:
- 39 days (versus 48 days) of loss time per employee due to health-related absence and presenteeism.
- 21% (versus 27%) of employees getting less than 7 hours of sleep.
- 28% (versus 40%) of employees not doing recommended level of physical activity (150 min/week).
- 40% (versus 46%) of employees experiencing at least one work-related mental health risk factor.
- 55% (versus 63%) of employees worry about their financial situation.
The better results above equate to 9 additional days of productivity.
Compared to other organizations, employees from the top 3 organizations reported better results in the following statements on work culture:
- 79% (versus 62%) noted senior management views employee health and wellbeing as important for the organization’s success.
- 71% (versus 52%) noted senior management demonstrates healthy lifestyle choices.
- 72% (versus 52%) noted senior management demonstrates healthy mental health habits.
As a whole, financial gains are made through various means including improved productivity; decreased number, frequency, and duration of disability leave, absenteeism, and presenteeism; employee replacement and retraining costs; and other returns.
Different studies have also shown employee mental health supports and interventions to:
- improve mental wellbeing and reduced burnout
- reduce mental illness-related stigma
- reduce productivity losses
- reduce absenteeism and presenteeism
- improve retention
- improve talent attraction
- increase employees’ willingness as well as ability to identify and support those with mental health issues
- improve risk mitigation
- improve trust of organization
However, there are some indications that the improvements may not be as strong or as long as employers would have liked. This can be due to the likelihood that in order to yield effective and sustainable results, employers need go beyond providing employees with common individual-based interventions and supports since there are clearly organizational factors (requiring organizational-based interventions) that directly affect employees’ mental health. Properly addressing workplace psychosocial risks and hazards (organizational factors) has shown to be pivotal in maximizing employee performance, improving productivity, and reducing negative mental health problems. Insight Workplace is your one-stop-shop in materializing these wonderful results for your organization.
Ready to enhance mental health and psychological safety while simultaneously achieving significant financial ROI? Contact us today to learn more about how Insight Workplace’s innovative, expert led services.
