Companies can no longer afford to ignore mental health issues in the workplace. Mental health is an important factor in organizations’ efforts to improve productivity, attract top talent and manage costs. Untreated mental health issues among employees continue to have a devastating financial impact. According to studies, by 2040 the U.S. may face a loss of productivity estimated at $252.3 billion due to mental inequalities. There is a way forward that will benefit both employers and employees.
Untreated mental health costs high
Mental health problems that are not treated can have a negative impact on workplace productivity, and increase operational costs in businesses throughout the United States. Absenteeism is the biggest culprit, accounting for 60% of all missed workdays. Depression alone costs companies $44 billion in lost productivity each year. The problem extends far beyond those days when employees fail to show up.
Even when an employee is present, performance can be affected. This phenomenon, known as presenteeism occurs when employees struggle to concentrate and perform because of mental health issues. Harvard Business Review reports that presenteeism can cost businesses up to $150 billion per year, resulting in productivity losses.
Loss of productivity is not the only financial burden. The cost of healthcare for employees who have untreated mental illnesses is significantly higher. These conditions contribute to more than $190 billion in direct medical costs each year. This includes increased doctor visits, hospitalizations and the use specialized treatments. Untreated mental conditions are also a major cause of disability claims both in the short and long term. According to a recent study by Mercer Global Disability Inclusion, 51% of employees who consider themselves disabled cite mental conditions such as anxiety and depression as their main challenge.
These issues are a financial burden that employers cannot afford. Untreated mental illnesses will continue to increase costs if proactive action is not taken. This affects the bottom line, employee wellbeing, and overall organization performance.
Support for Mental Health
Innovative solutions are now emerging to tackle these problems. Ketamine-Assisted Therapy has been recognized as a breakthrough treatment for mental health conditions that are resistant to treatment, such as depression and PTSD. KAT is a rapid and measurable improvement in mental health compared to traditional antidepressants that can take weeks or even months to show modest results. In clinical trials, nearly 89% participants with anxiety or depression experienced significant symptoms relief after only four sessions.
Employers can benefit from integrating KAT therapies into their workplace wellness programs and improve the quality of life for employees. They will also realize significant financial gains. According to research, for every dollar spent on mental health, employers can expect to see a return of $4 in terms of reduced healthcare costs, increased productivity, decreased absenteeism and disability claims, as well as a reduction in their overall healthcare expenses. This can result in millions of dollars saved annually by large companies.
The Business Case for Action
The human impact of the numbers is just as powerful. The employees are the heart of any business, and their wellbeing directly impacts the success of that organization. Prioritizing mental wellness can help companies foster a culture that encourages resilience, support and innovation. It’s not just about employee satisfaction, but it creates a competitive edge in the war for talent today.
TARA Mind’s approach to mental health at work sets a standard for how businesses can tackle this growing problem. Our employer-funded approach provides a solution that is ready to use for integrating cutting edge therapies such as KAT into existing benefit packages. This ensures employees have access effective and evidence-based care. TARA Mind’s premium provider network provides organizations with the assurance that their investment will pay off both financially and culturally.
Untreated mental illnesses in the workplace have unsustainable costs. Employers have a clear choice: either continue to be burdened by inaction, or adopt innovative, proactive solutions which support their workforce as well as their bottom line. Integrating proven therapies such as Ketamine-Assisted Therapy in employee wellness programs can help companies unlock huge cost savings and create a healthier, productive workplace culture.
As a former Navy Seal and CEO of TARA Mind I have seen the transformational power of mental health interventions first-hand. Now is the time to act. We at TARA Mind believe that prioritizing mental health in the workplace is the right thing. We are calling on employers and employees to join us in taking action. Together, we can reverse the mental health crisis, which affects so many employees, families, and organizations. Let’s get started!
