The Mental Health Link

Perspective

Mental health issues continue to affect workers and impact budgets. According to a study by Mind Share Partners, 76% of U.S. workers have at least one symptom of a mental health condition.¹ This high percentage comes at no small cost. The economic burden of American adults with depression is estimated at $325 billion, with 61% of that due to lost productivity at work.²

As employees and organizations seek solutions, both sides would benefit if they could address mental health in an open, caring, and non-stigmatized environment. So how can organizations best support employees’ mental wellbeing?

“We cannot underestimate the positive impact we can have when we align our workplace policies and practices with people’s psychological health.”
‍—Arthur C. Evans Jr., PhD, CEO, American Psychological Association

Poor workplace cultures contribute to mental health struggles

Unfortunately, the negative effects of mental health challenges are prevalent in many workplaces. Studies show that 84% of employees say workplace conditions—such as emotionally draining work, challenges with life balance, and lack of recognition—negatively impact their mental health.³

We asked employees about ways work could negatively affect their mental health. Organizations with employees likely to answer yes to the questions are also likely to have a higher risk of these conditions. The following tables show the five greatest predictors that increase the chance for burnout, anxiety, and depression.

To help improve mental health in the workplace, changes must happen at the organizational level. For example, when faced with unrealistic deadlines, toxic work environments, or insensitive managers, employees are often expected to “just get through it.”

But research shows this approach doesn’t improve morale or mental health.⁴

Giving and receiving recognition can improve employee mental health

Clinical research shows that expressing and receiving gratitude can improve mental health.⁵ Employees who appreciate their coworkers report a significant decrease in the odds of burnout (57%), anxiety (24%), and depression (28%).

A robust employee recognition program makes gratitude a regular part of work culture. Employees can express and receive gratitude more easily, which leads to improved wellbeing, higher productivity, and better business outcomes.

Let’s take a quick look at the landscape of mental health-related costs and potential savings.

Absenteeism

The following table estimates the time and money lost to absenteeism (per employee, per month), and the realistic difference a recognition program can make.

Presenteeism

Employees who show up to work but underperform can be costly for organizations. The following table estimates the monthly impact when a worker is 50% and 80% productive, as well as the savings a recognition program could provide.

Workplace accidents

Employees experiencing burnout, anxiety, or depression are more likely to report having a workplace accident than employees who don’t have any mental health conditions. However, recognition programs can decrease the likelihood of workplace injuries by up to 50%.

“Creating a mentally healthy workplace should no longer be considered a peripheral concern for leaders. It is something that needs to be at the core of successful, thriving organizations.”
‍—Professor Samuel Harvey, Executive Director and Chief Scientist, Black Dog Institute Australia

Recommendations

Building a culture of recognition can help support employee mental health.

1. Focus on the elements of a healthy culture and destigmatize mental health issues

As part of the Wellbeing Talent Magnet, remove the stigma around mental health in the workplace. Make it easy to discuss mental health issues openly.⁶ Implement policies that allow this open discussion among employees—and especially with leaders.

2. Enable employees to give and receive recognition

Having a recognition program that allows employees to express gratitude at work can reduce the likelihood of burnout, anxiety, and depression. But a recognition program on its own is not enough.

Recognition must be an integrated part of the employee experience. Tools should enable frequent, timely, and meaningful recognition as well as a variety of ways to show gratitude. Giving and receiving recognition can increase belonging, connection, and community, which counteract many factors that lead to poor mental health.

3. Include mental health offerings in Total Rewards packages

Medical benefits that cover mental health are critical to helping employees not only survive but thrive at work. Organizations must do more than make offerings available. They must also support and provide resources for employees to use them. Train leaders to support mental health, create formal flexible-work policies, and give people autonomy in their work to improve their emotional wellbeing.

O.C. Tanner is the global leader in software and services that improve workplace culture through meaningful employee recognition experiences. Learn how Culture Cloud® can help your employees thrive at work.

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The Mental Health Link Sources

1. 2021 Mental Health at Work Report, Mind Share Partners, 2021.
2. “The Economic Burden of Adults with Major Depressive Disorder in the United States (2010 and 2018),” Paul E. Greenberg, Andree-Anne Fournier, Tammy Sisitsky, Mark Simes, Richard Berman, Sarah H. Koenigsberg, and Ronald C. Kessler, Pharmacoeconomics, 2021.
3. 2021 Mental Health at Work Report, Mind Share Partners, 2021.
4. “Nimble Resilience,” 2024 Global Culture Report, O.C. Tanner Institute.
5. “Gratitude interventions: Effective self-help? A meta-analysis of the impact on symptoms of depression and anxiety,” David R. Cregg and Jennifer S. Cheavens, Journal of Happiness Studies, February 22, 2020.
6. 2021 Mental Health at Work Report, Mind Share Partners, 2021.