The Hidden Balance Sheet - The Cost of Poor Mental Health in the Workplace

Mental health issues are on the increase everywhere. According to Eurostat, 21% of EU adults suffer from mental health conditions and the NHS reports that 18% of UK adults now take antidepressants. 46% of young people feel stressed or anxious most of the time and half of employees under 40 are burned out. These trends are alarming, not only for public health, but because they represent a huge productivity drain.

Absenteeism and burnout are estimated to cost the EU and US economies upwards of €1.8 trillion in lost productivity yearly. According to our estimates, poor mental health can cost up to €2,000 yearly per employee.

Well supported employees are likely to say their employer has a positive impact on their mental health, sleep, physical health and financial wellness. The right support enables employees to feel engaged and committed at work, helps them manage stress and anxiety, and allows them to work efficiently and creatively. GenZ employees actually expect their employer to actively support their mental health. That’s why employee wellbeing is quickly becoming a top priority: employers are increasingly recognising that when employees feel better, we do better.

Traditionally, Employee Assistance Programs (EAPs) have represented a major pillar of mental health support – but they’re no longer fit for purpose. EAPs might seem important from a “duty of care” perspective, but they’ve proven fundamentally deficient, incapable of truly addressing employee mental health challenges. Their “one-size-fits-all” approach is based on triage; they provide users with very limited options in terms of professional of choice, and have extremely low usage. According to the EAPA report Holding It Together, in the UK, just 1.8% of employees with EAP availed of counselling support in 2022. Given the scale of mental health challenges, something is clearly wrong.

Based on Kara Connect’s customer and prospects feedback, employees are looking for self-service access to high quality, specialised support that is timely and confidential. Specific needs include:

• Access, access, access: The solution should be simple and easy to use, provide rapid access to support whenever needed and connect employees with professionals in as short a time as possible.
• High quality practitioners: Empowered to provide exceptional and effective care in their field of expertise.
• Ability to choose from a broad selection of practitioners: We all want to have a say in how we’re treated. To allow every employee to feel cared for, employers should aim to provide a range of areas of expertise and ensure professionals come from diverse backgrounds and experiences.
• Range of languages: We’d all like to be able to speak our native language while accessing support – so the services available should include a range of languages.
• Highest confidentiality & privacy: Optimally, the solution does away with the need for referrals, insurance information or manager intervention, removing barriers to use.

Quality mental health solutions are an investment in a proactive approach to workplace wellbeing. The benefits include reduced absenteeism and burnout; increased engagement; lower healthcare costs and improved retention. Invariably, these savings represent a strong return on investment for companies adopting the right services.

By prioritising employee well-being through innovative solutions, we create a win-win situation where everyone benefits: individuals, companies, and the broader community. Let's move to high quality solutions and embrace a future where mental health is safeguarded and celebrated in the workplace.

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John McElligott is COO of Kara Connect.

Kara Connect’s solution provides employers with customised, curated wellbeing solutions via our network of 3000+ practitioners covering 60+ specialties in 30+ languages. Our philosophy, that nobody should slip through the net for care, is founded on our strong Nordic roots, and customers report the highest levels of engagement and satisfaction in the market.