Workplace Stress Can be Costly

According to a 2005 estimate in the journal Chronic Diseases in Canada, the price for such “presenteeism” (when a worker is physically at work, but mentally absent) is a staggering $30 billion a year in direct and indirect costs, as stressed workers are absent twice as often as employees with little stress.

“Stress, burnout, and depression create huge fallout in the workplace that far exceeds taking a sick day here and there,” says Dr. Taylor Alexander, chief executive of the Canadian Mental Health Association (CMHA).

According to the report, mental health claims are the fastest-growing category for days lost to disability in Canada, and clinical depression alone is responsible for an average of 40 missed work days a year. “It is estimated that more than two million employees in Canada suffer mental illness at any given time,” he explains. “The economic, social and personal impact of mentally unhealthy workplaces is staggering.”

Canada is not alone. The World Health Organization estimates that globally, depression will be second only to cardiovascular disease as a cause of disability by 2020.

Dr. Alexander says that ignoring these issues only means more absenteeism, reduced productivity, and higher disability and benefits costs. “Businesses are facing projected shortages of skilled workers in the future and they will have to use their resources in the most effective way. Part of that is ensuring that their work force is mentally healthy.”

It’s up to employers to help employees achieve a greater work/life balance, according to him. Dr. Alexander says simple solutions such as flexible hours, encouraging employees to utilize vacation time, and giving them time off to care for sick relatives go a long way in promoting a balanced outlook. Providing access to employee assistance programs (EAP) and discouraging employees from coming to work when they’re sick are important as well.

To improve employees’ mental health, he recommends employers could offer flexible hours, allow workers to work from home where possible and appropriate, permit those returning from a leave to gradually build up to a full-time schedule, encourage staff to stay home with sick children or elderly relatives when needed, and eliminate unnecessary meetings.

Dr. Alexander insists the onus is on the employer to create an environment of support and openness, so employees feel comfortable approaching their bosses if they’re experiencing emotional problems. “It’s up to the employer to create the environment where that can happen.”

Instituting such policies may appear costly to employers at first glance, but the CMHA reports that for every dollar spent on a corporate wellness program, the returns have been cost savings of up to $10.10 in the areas of decreased absenteeism, fewer sick days, reduced WSIB/WCB claims, lowered health and insurance costs, and improvements to employee performance and productivity.

“Getting $10 in savings for every dollar you put into a wellness program strikes me as a very good investment indeed,” says Dr. Alexander. “This just makes good economic sense and human sense as well.”

He has no hard data to prove that the growing rate of work-related stress is responsible for an increase in mental health claims, but says that stress tends to affect all aspects of a person’s life, regardless of the origin.

“Often what you have here is a domino effect,” Dr. Alexander says. “If there’s stress in one part of your life, it can affect other parts of your life. So what could start at the office could be brought home and create family-related stresses and then a vicious cycle is set up.”

The Desjardins survey was released ahead of Mental Health Week 2008, which runs from May 5th through 11th and focuses on the role that employers and businesses can play in making their workplace a mentally healthy and productive environment.

For more information on Mental Health Week, click here.

To comment on this story, email jody.white@rci.rogers.com.