You’ve likely noticed a growing trend in the modern workplace. It seems every other company is promoting wellness programs, offering yoga discounts, and providing employees with subscriptions to mental health apps.
It’s happening because, even in purely business terms, it pays to take care of your people. As an HR professional, you are on the front lines of this shift, and understanding the financial and human return on investment is crucial.
What It Means
Mental health ROI, or Return on Investment, looks at mental health as a strategic business investment. When a company invests in programs that support the mental wellbeing of its employees, it sees a tangible return.
In Canada alone, mental illness-related absenteeism and presenteeism (working while unwell) cost an estimated $6.3 billion annually. That’s the equivalent of over 1,000 Canadian employees missing work for mental health reasons each week.
Thus it makes sense to invest in employee mental health for the future of a business.
The Cost of Ignoring Employee Mental Health
If choosing to invest in mental health programs yields results, choosing not to do so will have its own effects:
- Absenteeism: Employees taking more sick days or extended leave.
- Reduced Productivity (Presenteeism): Employees who are at work but are not performing at their full capacity.
- Increased Healthcare Costs: Higher insurance claims and medical expenses related to stress and mental health conditions.
- Operational Risks: Beyond the financial toll, ignoring mental health also carries operational and cultural risks.
- High Employee Turnover: Employees are more likely to leave a company that doesn’t prioritize their wellbeing, leading to constant recruitment and training expenses.
While a company isn’t legally mandated to invest in mental health, the decision to ignore it is a choice with real, measurable consequences. Proactive investment is a strategic way to avert these significant risks and build a more resilient and productive workforce.
The Mental Health ROI Strategy
What are your strategies as the HR department?
How do you plan on spending money where it matters and gives the best return possible?
The goal is to invest in programs that are not only beneficial for employees but also financially sensible for the company.
Let’s see your options:
1. Choose the Right Wellness Program
There are countless wellness programs to choose from, but simply picking one isn’t enough. The HR team must choose wisely, making sure the program aligns with the company’s culture while respecting employee privacy and power of choice.
Wellness programs can take many forms:
- Gym Reimbursements
- Free Health Screenings
- Mental Health App Subscriptions
- Commuter Benefits
- Healthy Snack Days
All of these options are valuable, but the key is to select initiatives that empower employees rather than imposing a specific lifestyle. A successful program should never feel like a mandate.
2. Measure Its Effectiveness
Once a wellness program is implemented, it’s crucial to measure its effectiveness to ensure you’re getting a good return on your investment. You can do this by tracking a few key metrics after a reasonable period.
Is Absenteeism on the Decline?
A key indicator of a successful wellness program is a reduction in employee sick days and unplanned absences. Healthier, happier employees are more likely to come to work, leading to higher productivity and fewer disruptions.
Has Turnover Declined?
A high turnover rate is a major cost for any business. If your wellness program is working, employees should feel more supported and valued, leading to increased loyalty and a lower desire to leave the company. This directly impacts your bottom line by saving on recruitment and training costs.
Are People Actually Using It?
This is perhaps the most direct measure of a program’s success. Track participation rates to see if employees are actively engaging with the resources provided. Low usage might indicate that the program isn’t a good fit for your company culture or that employees are unaware of the benefits. High usage, however, is a strong sign that you’ve invested in a program that truly resonates with your team.
3. Build the Right Company Culture
A wellness program provides valuable tools, but it’s the company culture that determines its success. As a key function of the HR team, you must ensure the culture evolves to support mental health, making a lasting impact.
- Eradicate Stigma: Your primary goal is to create an environment where there is no stigma around mental health. This means making it clear that mental health issues are treated with the same understanding and seriousness as physical ailments.
- Encourage Open Dialogue: The HR team should champion open conversations about mental health. This involves training leaders and managers to talk openly about mental wellbeing, share their own experiences (when appropriate), and check in on their teams in a genuine way. When leaders model this behavior, it gives employees permission to do the same.
Promote Psychological Safety: A supportive culture is one where employees feel safe to be vulnerable. This psychological safety encourages them to use the wellness resources provided without fear of judgment or negative career consequences. By fostering this environment, you ensure your wellness program isn’t just a list of benefits but a truly integrated part of how your company operates.
Final Words
A wellness program is only as effective as the tools and culture that support it. How far are you from reaching the right formula that balances these two?