Mental health affecting business bottom line: study

Some employers are increasingly questioning the value of wellness programs – but life insurers are countering that argument with hard facts, given the half a million absences a week due to mental health issues

Some employers are increasingly questioning the value of wellness programs – but life insurers are countering that argument with hard facts, given the half a million absences a week due to mental health issues.

“As a psychologist and a workplace mental health specialist, I see first-hand the toll that mental health issues are having on Canadian employees and employers” says Marie-Helene Pelletier, director, workplace mental health, Sun Life Financial. “The statistics from the Centre for Addiction and Mental Health are eye-opening - more than 500,000 Canadians miss work each week with mental health issues, with full-time employees identified as the most stressed group of any in Canada.”

With a challenge of this magnitude, brokers need to encourage their clients to make use of every available tool. One that’s often overlooked is the significant impact that positive lifestyle changes can have on improving mental health, says Pelletier.

“Research tells us that lifestyle changes related to diet, exercise and relationships, for example, can have powerful preventative effects and can complement traditional treatments such as drug therapy or psychotherapy,” she says.

Employers have reported that these issues are the leading cause of disability claims in their workplaces – and the economic burden on employers from claims, absences and lost productivity is an eye-popping $20 billion per year, according to a recent Towers Watson report. Canada-wide, mental health issues cost the economy the staggering amount of $51 billion per year.

Alana Free, the vice president of human resources at GoodLife Fitness, agrees that the research on wellness programs do show a benefit.

“All of our research has shown that having a wellness program is one of the smartest things they can do,” says Free. “The key is all in the implementation of the program and the quality of it.  You must have a defined strategy and it has to be incorporated into the full company and not operate as a silo.”

Free cites the Sun Life-Ivey Canadian Wellness Return on Investment Study, Phase 1 that shows workplace wellness programs can save $251 per employee per year.

Also, the Towers Watson 2013/2014 Staying at Work Report Canadian Summary showed that when wellness programs are implemented effectively the following results will happen: voluntary turnover levels are cut in half; there are 1.2 fewer unplanned absence per employee per year; there is a 25 per cent decrease in disability durations; 25 fewer workdays per 100 covered are lost; and 2 per cent fewer cases of short-term disability occur.

With such a large part of daily life focused on the work environment, your business clients are uniquely positioned to help foster mental health among your employees, Pelletier points out.

“Supporting healthy lifestyles can be a key part of a strategic and comprehensive approach to mental, physical and social health in the workplace – one that provides support for employees in any health stage at any point in time: those off work, those at risk, and those in good health,” she says.
 

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