Mental Health Facts & Figures

Why Mental Health in the Workplace Matters

Understanding the financial and human costs of workplace mental health is essential to helping employers and organizations develop an action plan for improving both the bottom line and employee well-being.

Many people face mental health issues during their prime working years

  • Depression will rank second only to heart disease as the leading cause of disability worldwide by the year 2020.1
  • Disability represents anywhere from 4% to 12% of payroll costs in Canada; mental health claims (especially depression and anxiety) have overtaken cardiovascular disease as the fastest growing category of disability costs in Canada. 2
  • 20% of Canadian workers experience a stress related illness per year (2001). 3
  • Chrysalis Performance Inc. research shows that stress in a business contributes to4:
    • 19% of absenteeism cost
    • 40% of turnover cost
    • 55% of EAP costs
    • 30% of short term disability and long term disability costs
    • 60% workplace accidents
    • 10% of drug plan costs
    • 100% of stress related lawsuit

The Canadian economy loses billions to mental health issues

  • Mental health disorders in the workplace cost Canadian companies nearly 14% of their net annual profits and up to $16 billion annually.
  • More recent calculations, which include indirect costs, suggest that upwards of $30 billion is lost to the Canadian economy annually due to mental health and addiction issues.6

High stress levels and mental health issues can cause other health conditions

  • For example, excessive stress has been linked to infectious disease and cardiovascular problems, higher incidence of back pain, repetitive strain injuries (RSIs), and colorectal cancer.7
  • Stress on the job can double the risk of heart attack.8
  • Absenteeism is estimated to cost 7.1% of payroll. The majority of absences are considered stress related.9

Early identification and treatment can be important to successful recovery

  • Early detection and treatment may reduce the likelihood that the mental health issue becomes chronic. Research indicates for example, that should a person experience a mental health issue and receive treatment in the first few months of their illness, timely recovery is more likely.10

Stigma and discrimination can discourage people from seeking help

  • Studies have shown that only 30% of people with depression seek help, partly because of the stigma of mental illness that still exists and partly because they do not know they have depression.12

Accommodating mental health issues at work makes good business sense

  • The costs for providing mental health-related accommodations are fairly low; with most costs well under $500 per person per year.13
  • A potential savings of up to $10,000 per employee per year in the cost of prescription drugs, sick leave, and average wage replacement can be achieved.14
  • Employees who are diagnosed with depression and take appropriate medication will save their employer an average of 11 days a year in prevented absenteeism.15
  • Employers can save up to an extra $595 per year per person who is successfully treated for alcohol abuse.16

Promoting mental health benefits to workers and organizations

  • Health promotion programs will only be effective under conducive managerial conditions (primarily those that stimulate employee job satisfaction).17
  • Employees benefit from participation in workplace well-being programs; but the adoption of a comprehensive strategy, that includes a number of activities, is what makes workplace health promotion programs successful.18
  • Organizations that value and improve the health of the workplace improve their organization profile. An improved profile generates an organization that recruits high caliber people and retains them-then they enhance their ability for growth.19
  • Amex Canada won Canada's Award for Excellence for Healthy Workplace in October 2001. The award recognized the company's management practice and leadership development just as much as it recognized the company's on-site gym and fitness classes. Such recognition can help promote your company as a healthy workplace.20
  • 57% of graduating business students around the world rate maintaining a balance between work and personal life as their primary career goal and key to choosing their first employer. Most believe career and personal goals can be developed in tandem; and say a working schedule that allows them to see family and friends on a predictable basis is key to work-life balance.21

Mental Health Facts & Figures - Sources

Last updated on: July 21, 2008

Having an employee who has suffered a mental disability return to work successfully is a primary goal of any return to work and accommodation plan. see all

Mental Health Facts & Figures

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