How Employee Mental Health Affects Your Business’s Bottom Line

by Chatty Garrate, freelance writer and HRHQ contributor

Employees are the most valuable asset of any company. Thus, it’s always crucial to think about their well-being to ensure they reach their full potential at work. Nowadays, with many things going on, global warming, inflation, cost of living and personal issues—their mental health suffers. While others may see these issues as small, all combined they may affect all aspects of a person’s life, including their performance at work.

In light of this, tackling mental health at work is crucial. And as a survey finds there’s a significant need for mental health support at work, it would also be best to make a plan to help your employees—not just noting that they have a mental health concern. And this article will help you with that, but first, let’s get a better understanding of how employee mental health affects your business’s bottom line. Let’s get started!

Declining Revenue And Profit

One of the most obvious effects of disregarding employee mental health is the loss of potential revenue and profit. When employees struggle with their mental health, they tend to be less productive and efficient. And this then affects your company’s overall profit. To give you a clear overview, let’s take a closer look at how poor mental health may affect your employees’ work performance.

Workplace Errors

Dealing with mental health issues can feel like everything is on your plate: your everyday life, expenses, how you will manage your debts, and work. This overwhelming feeling can affect how employees function inside your office. Since they’re distracted about almost everything, chances are they may not be able to perform their responsibilities effectively. They are prone to errors and may struggle to develop creative ideas that you’ll need for your campaigns.

Reduced Productivity and Morale 

Mental health also directly affects productivity and morale in the workplace. When people struggle with handling it, they are less likely to be motivated to do anything, which will reflect in their productivity. But this lack of motivation also radiates to the entire work environment, affecting other workers. Thus, it’s essential to address these concerns to avoid that. And keep in mind that poor employee mental health at work may cost employers $31 billion to $51 billion per year due to lost productivity, according to a study.

High Absenteeism Rate 

Connected to having low morale is the increase in  the absenteeism rate. As you know, when we deal with something like anxiety, burnout, and depression, we may feel like we always have to get our minds off of things. Thus, employees take days off or call in sick to cope with their mental health issues. This results in a higher absenteeism rate and loss of productivity.

Risk of Employee Turnover

The next thing you will notice is your employee’s disengagement and absenteeism will lead them to filing for resignation. That’s the usual outcome once an employee struggles with their mental health and employers fail to recognize and address it, as it often makes the work environment unhealthy for them. Thus, they become disengaged from the work, which can then result in a turnover. 

Reputational Damage

In this modern time, customers value how a business treats its employees. Thus, when an employee opens up about their experience with your company on social media, showing neglect for their mental health concerns, expect to have your reputation damaged. 

Always remember that it’s your employees who connect with your customers. They’re the face of your business. When you ignore their health issues, you’re already at risk of having your brand associated with callousness. And with a survey finding that most companies think they don’t have enough workers, it will be more difficult for you to hire more talent.

Risk of Legal Action

Nowadays, even the law acknowledges the importance of mental health. So, when an employer fails to accommodate an employee’s mental health needs, they can be sued for emotional distress. Or if they discriminate against those mentally-ill staff, they can be held liable for any damages they caused to an employee’s overall well-being.

Knowing all the risks poor mental health can cause your company, you’ll get to understand the importance of managing mental health in the workplace. So how will you do that?

Supporting Employee’s Mental Health

There are many ways for you to support your employees when it comes to managing stress and other mental health issues. Here are a few of them:

• Promote a work-life balance. Offer mental health breaks for your employees that are separate from their vacation and sick leaves. That way, you reduce the risks of burnout and stress. You can also offer flexible schedules and a hybrid or remote setup.
• Foster open communication. Create an environment where employees will feel comfortable sharing their concerns, including mental health. Never neglect their thoughts and feelings.
• Provide helpful resources. This may include seminars where they can learn about mental health awareness and stress management, an Employee Assistance Program (EAP), health insurance, and as simple as wellness activities.

The Bottom Line

Your employees’ mental health and overall well-being affect your company’s bottom line. Thus, making these subjects an integral part of your workplace culture is essential. Start prioritising mental health now and follow our tips to support your employees.

About the author

Chatty Garrate is a full time a language evaluator and also a part time freelance writer. Chatty writes about various topics such as technology, business, and HR Dev.