Mental health problems costing UK business £26 billion
According to recent research by The Sainsbury Centre for Mental Health, at any one time one worker in six will be experiencing depression, anxiety or problems relating to stress.
The cost to business is estimated to be £26 billion, which is the equivalent of £1,035 for every employee in the UK workforce. Even small businesses should note that this is not a figure to be ignored because a 15-person company could see costs associated with stress of approximately £15,000 per year plus.
Here are just some of the findings highlighted in the report:
- “Survey evidence indicates that the great majority of employers seriously under-estimate the prevalence of mental health problems among their employees. Nearly half think that none of their staff will ever have a mental health problem: in fact the rate is at least one in six at any time.
- The importance of mental ill health as a cause of sickness absence from work is generally acknowledged but it is not always accurately measured.
- Much less is known about the importance of mental health problems as a cause of impaired performance while people are at work. The evidence that is available suggests that ‘presenteeism’, as it has now come to be known, has a significantly larger impact on worker productivity than absenteeism.
- Mental health problems in the workforce have other adverse consequences for organisations, such as increased staff turnover, which again are not always well recognised or recorded.
- Depression, anxiety and stress can contribute to the development of a range of physical illnesses, including serious conditions such as coronary heart disease. The work-related costs of mental ill health may be understated unless allowance is made for these wider health effects.
- Costs may also be understated if a fear of discrimination or even dismissal leads employees to disguise mental health problems and to blame absence or under-performance on ill-defined physical symptoms.”
The cost associated with work-place stress and other mental problems are made up of asenteeism (people calling in sick), presenteeism (people who continue to come to work but function at less than their normal levels of productivity) and staff turnover.
So what can be done?
The report suggests a number of options to consider:
- “Recognition by employers that work is on the whole very good for mental health, as it is for physical health (Waddell & Burton, 2006).
- Prevention of mental health problems which are directly work-related (accounting for around 15 per cent of total costs). This may include providing mentally healthy working conditions and practices in line with the Health and Safety Executive’s management standards on work-related stress.
- Awareness training for line managers, to increase their knowledge and understanding of mental health issues and their ability to respond confidently and in a timely fashion to employees in distress.
- Better access to help, particularly access to evidence-based psychological help which wherever possible enables people to carry on working at the same time as receiving support.
- Effective rehabilitation for those who need to take time off work, including regular contact with the employee during periods of absence.”
When examining the costs of continuing to ignore the problem at hand, the cost of safe-guarding the mental well-being of staff compares favourably.
The additional cost of ensuring a stress risk-assessment as part of the annual Health & Saftey risk assessment is slight and should be considered as part of the assessment as a matter of course - Health & Safety does not just relate to preventing physical injury.
Awareness training for managers is not costly and employers must take responsibility for ensuring that the actions of their own personnel are not contributing to unnecessary stress for others at work. Exit interviews with departing staff and regular performance reviews are simply ways to gather feedback from staff and respond accordingly.
Above all, people work best when there is open communication amongst staff and every member of staff knows what is expected of them and has the resources available to meet those expectations.
© Copyright Hannah McNamara 2007
HRM Coaching provides advice and practical support for employers and employees who are looking to minimise exposure to workplace stress. For information about training for managers and support for individuals dealing with stressful situations, please contact us on 020 7939 9910 or via our contact page.
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