The Evidence
mental health significantly affects workplace dynamics, productivity, and organizational success
The Economic and Productivity Costs of Workplace Mental Health
Recent data shows that depression-related absenteeism alone costs U.S. businesses approximately $44 billion annually, while absences due to poor sleep cost roughly $44.6 billion in lost productivity.
Business leaders increasingly recognize these impacts, reporting that mental health issues lead to decreased revenue (40%), reduced profitability (39%), customer loss (30%), diminished output (26%), and reduced competitiveness (20%).
Current research indicates that approximately 2 in 5 employees experience some combination of mental health concerns, performance issues, and stress. However, more than half of employees (54%) report feeling uncomfortable discussing mental health with supervisors, with 30% fearing such discussions could lead to being fired or furloughed, and 29% concerned it might cost them promotion opportunities (2023 Paychex Survey). More over 1 in 3 employees feel that mental health support in the workplace is inadequate and would like more support from their employers (2024 SHRM).
A Clear Business Case for Employee Mental Health Services
Investing in employee mental health services, such as therapy and counselling sessions, yields significant benefits for both employees and businesses. Here’s an overview of the advantages:
Reduced Absenteeism and Payroll Savings
A NIH study of a digital mental health benefit found that employees utilizing mental health benefits report 0.70 fewer workdays per week impacted by mental health issues, representing significant productivity improvements. This translates to approximately $3,491 in salary savings per employee at the federal median wage of $50,000.
Improved Employee Retention and Engagement
Employee retention data is particularly compelling. Studies indicate that employees who utilize mental health benefits are retained at 1.58 times the rate of those who do not access such services. This retention advantage addresses one of the most costly challenges facing organizations today.
Financial Returns on Investment
Multiple studies identify substantial ROI for mental health investments:
A Deloitte study found organizations receive approximately $5 for every $1 spent on mental health initiatives. Similar research by the National Safety Council established a $4 return for every $1 invested in employee mental health support through reduced absenteeism and increased productivity.
Reduced Healthcare Costs
Employees experiencing mental distress incur approximately $3,000 more in healthcare services annually than their peers. Companies with comprehensive mental health benefits report a 30% reduction in total health claims cost per enrolled employee.
Positive Workplace Culture and Company Branding
Offering mental health support fosters a positive work environment, enhancing the company’s reputation and aiding in attracting top talent.
Nearly a decade of research consistently demonstrates that supportive workplace cultures are among the top contributors to employee mental health and wellbeing. Unmind’s 2025 survey of 5,000 employees, HR leaders, and C-Suite executives found that 84% believe it’s important for organizations to offer workplace therapy or coaching.
