Dr Vasudha Agarwal, Clinical Director, United We Care, says, “Mental health issues are a pressing concern for employers, as the poor mental health of employees results in a high cost to employers. A study by Deloitte in 2022 reveals that poor mental health amongst employee’s costs Indian employers US $14 billion yearly. This financial loss to the employers is due to low productivity, absenteeism as well a high attrition rate among employees who suffer from mental health issues. The absence of a positive work environment and mental health services that focus on the well-being of the employees results in high turnover rates in businesses and an increase in costs associated with recruiting and training new employees.”
Hariom Seth, Founder, FindInc, says “When employees are struggling with mental health issues such as depression, anxiety, or other related conditions, it can affect their ability to perform at work, leading to decreased productivity and potentially even increased absenteeism. This can be costly for businesses as it can result in missed deadlines, lower quality work, and potentially lost business opportunities. Moreover, when employees feel unsupported in dealing with their mental health concerns, it can lead to increased turnover rates, as they may seek employment elsewhere.”
Impact of mental health issues at work
Arushi Sethi, co-founder and CEO, Trijog, says, “An alarming, hidden and murderous weapon that’s how I’d term the cost of mental health concerns to corporate India. The poor mental health of employees costs Indian employees around 14 Billion Dollars Annually. An unimaginable loss. The non-existent, insufficient proactive investment and ignorance of empanelling mental health as a cornerstone of company culture and not providing its benefits for our co-workers amounts to:
- Employee value suppression: When our people are not heard, when people are not given a safe space to communicate and process their feelings, where there is no professional confidential counseling support provided or empowerment in additional ways for eg: Mental health paid leaves, Wellness zones, Mental health check-ins, group training from the top down, – an automatic correlated drop will be overserved in an employee’s performance bringing in a major gap in motivation – in turn leading to a loss in output which defines productivity – which then leads to an unsatisfactory output directly affecting your balance sheet.
- Higher Attrition rates: No motivation, leading to a lowered sense of achievement, and increased resignations. All point to the lack of self-worth being generated due to an over-demanding workplace – not offering the appropriate tools to help one learn how to cope.
- Leadership needs to learn: You may be the king of your balance sheet but how much do you truly understand about the mind? Integrating psychology into business practice could be one of the biggest and most revolutionary tools with a guaranteed benefit to your top line and also in creating sustained change that will build a more empowered, informed and psychologically healthy workforce and workplace.
Seth further adds, “In addition to the direct costs associated with decreased productivity and increased turnover, there can also be indirect costs such as increased healthcare expenses, workers’ compensation claims, and legal costs related to disability claims. It is important for businesses to prioritize mental health in the workplace by providing resources and support for employees who are struggling. This can include offering an employee assistance program (EAP), providing mental health days or flexible work schedules, and training managers to recognize and respond to mental health concerns.”
By prioritizing mental health, businesses can help to create a more positive and productive work environment for all employees. “It is important for employers to prioritize the mental health and well-being of their employees, as it not only benefits the employees but creates a positive culture in the company that takes it forward on the road to success and productivity,” signs off Dr Agarwal.
