13 Reasons Why - #4 Cost

13 Reasons Why – #4 Cost

I recently did a series of short videos on LinkedIn entitled 13 Reasons Why exploring why every organisation needs to invest in building and sustaining a workforce that is resilient in the face of constant, uncertain, complex, volatile and ambiguous change.

I received positive feedback on the series and was asked to augment it with a series of articles on the same subject. Here you are.

The bottom line

It is this simple. If you don’t invest in building and sustaining a resilient workforce, it will cost you dearly.

You cannot afford not to do this. For those who like facts and figures here you are.

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The numbers

GLOBAL
A recent (2019) WHO-led study estimates that depression and anxiety disorders cost the global economy US$ 1 trillion each year in lost productivity.

For every US$ 1 put into scaled up treatment for common mental disorders, there is a return of US$ 4 in improved health and productivity.

https://www.who.int/mental_health/in_the_workplace/en/

CANADA
The business costs of poor mental health in the workplace are staggering, with 30 of every 1,000 Canadian employees missing work for mental health reasons each week. In total, the loss of productivity at work due to mental illness-related absenteeism and presenteeism (working while unwell) adds up to CA$6.3 billion annually across Canada. (2019)

https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/about-deloitte/ca-en-about-blueprint-for-workplace-mental-health-final-aoda.pdf

UK
We have updated this analysis to look again at the costs of poor mental health to UK employers, finding they have increased by 16%,5  now costing up to £45 billion. Our updated work also makes a positive case for investment in mental health by employers, finding an average return of £5 for every £1 spent, up from the £4 to £1 return identified in 2017.  (2020)

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/consultancy/deloitte-uk-mental-health-and-employers.pdf

Successful digital transformation is a matter of knowledge and access to the best talent. We connect you to both.Click for more.

AUSTRALIA
The cost to the Australian economy of mental ill-health and suicide is, conservatively, in the order of $43 to $51 billion per year. Additional to this is an approximately $130 billion cost associated with diminished health and reduced life expectancy for those living with mental ill-health. (2020)

https://www.pc.gov.au/inquiries/current/mental-health/draft

USA
Depression alone is estimated to cost the American economy $210 billion annually, with 50 per cent of that cost shouldered by employers.  These costs are probably underestimated because roughly four in 10 adults with mental health disorders do not seek treatment.

https://ceoroundtable.heart.org/wp-content/uploads/2018/12/Mental-Health-Full-Report-March-25-2019.pdf

The reasons
* Unaddressed mental health issues in the workplace can cause:
* Increased sick leave
* Increased workplace compensation claims
* Decreased productivity
* Decreased profitability
* Increased absenteeism
* Increased presenteeism
* Increased employee turnover
* Decreased quality
*Decreased performance
*Increase in accidents

All these impacts have significant financial repercussions for organisations and will continue to escalate if organisations do not invest in the mental well-being of their employee and create a resilient workforce.

Successful digital transformation is a matter of know how and access to the best talent. We connect you to both.Click for more.

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