Workplace wellness programs: Are the benefits worth it?
The Australian Bureau of Statistics (ABS) 2007 National Mental Health and Well-Being Survey (NMHWS) found that 45 per cent of Australians between the ages of 16-85 years of age experience a mental health condition in their lifetime. In the twelve months prior to the survey, 20 per cent of Australians experienced a mental health condition whether anxiety, affective or substance use conditions.10 Organisations have a vital role to play in providing workplace environments that are mentally healthy.
Workplaces look to respond to mental health conditions for multiple reasons, which include: Mental health conditions are common and affect working life for many adults. The workplace can have an effect on mental health conditions and vice versa absenteeism, reduced productivity and compensation claims cost Australian workplaces approximately $11 billion per year. The true cost of untreated mental health conditions is much higher when turnover and other impacts are considered. Organisational and business leaders also have duties under work health and safety laws to do whatever is reasonably practicable to eliminate or minimise risks to workers‟ mental and physical health.
Mental health in the workplace – The return on investment
Organisations have a vital role to play in providing workplace environments that are mentally healthy. While many organisations are currently under a range of economic pressures, it is critical to state the importance of providing a mentally healthy workplace and the supporting ROI case. Organisations need to be supported to understand the importance and benefits of mentally healthy workplaces and be provided with appropriate information to effectively implement mental health actions. Well-supported organisations can in turn provide their staff with appropriate resources which will make the workplace more mentally healthy.
Workplaces look to respond to mental health conditions for multiple reasons, which include:
Mental health conditions are common and affect working life for many adults
The workplace can have an effect on mental health conditions and vice versa
Absenteeism, reduced productivity and compensation claims cost Australian workplaces approximately $11 billion per year. The true cost of untreated mental health conditions is much higher when turnover and other impacts are considered.
Organisational and business leaders also have duties under work health and safety laws to do whatever is reasonably practicable to eliminate or minimise risks to workers‟ mental and physical health.
The ROI analysis will help raise awareness around the importance of addressing mental health conditions at work. An ROI analysis compares the benefits of creating a mentally healthy workplace with the associated investment required. This analysis finds that investing in mental health can provide significant returns to organisations.
Reducing the impacts of mental health conditions by one third sets a breakeven point‟ where all organisations across all actions achieve a positive ROI. For most actions, the organisation is likely to achieve a positive ROI well before the breakeven point is reached. Therefore, depending on the industry and size of an organisation, there may be varying productivity gains generated from different mental health actions. A key assumption of the ROI analysis is that the given action is effectively implemented in accordance with organisational change management principles.
Why devote resources to workplace wellness?
Historically, workplace wellness programs focused on cost containment as their sole reason for existence. However, it’s difficult to measure ROI because workplace wellness programs usually vary greatly from one company to another, with widely different levels of employer investment and employee involvement. Research over the years has offered conflicting reports on whether wellness programs actually reduce insurance and workers’ compensation claims.
Health care is a monumental issue for employers, and too much is at stake to be reactive. It’s time for companies to play offense rather than defense. A verifiable payback isn’t certain, and the journey can be arduous. But what is the alternative?
Reference:
https://www.nrspp.org.au/resources/creating-a-mentally-healthy-workplace-return-on-investment-analysis/