Creating a mentally healthy workplace: Return on Investment analysis

This research from PricewaterhouseCoopers (PWC) found that when organisations successfully introduce an effective action to create a mentally healthy workplace, they can expect a positive return on investment (ROI) of at least 2.3. In other words, for every one dollar spent there is a $2.30 gain.

The report also found that mental health conditions cost Australian workplaces more than $10.9 billion annually. 

PWC used seven initiatives to make the ROI calculation, based on their effectiveness across the “intervention continuum” (i.e. prevention, early intervention and rehabilitation/return to work). They were:

• Worksite physical activity program
• Coaching and mentoring, e.g. cognitive behavioural-based leadership coaching
• Mental health first aid and education
• Resilience training
• CBT based return-to-work programs
• Wellbeing checks or health screening
• Encouraging employee involvement.

PWC were able to show that effective implementation of these actions result in reduced absenteeism, gains in productivity and a reduction in compensation claims. Other benefits included a reduction in turnover, lower management costs, reduced incident costs and lower income insurance costs for the organisation.