Mental health programs pay off: study
TORONTO Canadian firms that invest in preventive programs and measurable initiatives to tackle poor mental health among their employees will make more money than their rivals that don’t, according to a new study from Deloitte.
For every dollar spent, the median return on investment is $1.62 by the third year and increases over time, according to the study, which looked at data from seven large companies that had implemented programs and initiatives for at least three years.
Craig Alexander, chief economist at Deloitte, said the math laid out in the study works because companies that make the investments have more productive workers, and pay out less in benefits to cover their share of the cost of workers struggling with mental health issues. “I don’t think people realize the cost of mental health issues to the Canadian economy.”
About 500,000 Canadians are unable to work at some point due to poor mental health problems or illnesses, according to the study, and the direct and indirect costs to the economy top $56 billion.
Direct costs to the Canadian companies include health-care benefits and drug costs, as well as short- and long-term disability payments, and total more than $50 billion annually. On top of that, there are indirect costs of $6.3 billion due to absenteeism, employee turnover, and something the study calls “presenteeism” — workers attending work while they’re unwell — which results in lower productivity. Mental health diagnoses are rising by up to one per cent each year.