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Prioritizing Mental Health: The Business Case for Employee Engagement

Updated: Nov 1, 2024




This World Mental Health Day, organizations must recognize the critical link between employee engagement and mental health. Given the significant time we spend at work, second only to sleep, it's imperative to create a workplace that supports both.


The Impact of Employee Engagement:

Gallup defines employee engagement as "the involvement and enthusiasm of employees in their work and workplace." Research consistently shows that engaged employees experience better mental health outcomes. Conversely, a lack of engagement can contribute to stress, burnout, and other mental health issues.   


The Business Costs of Low Engagement:

The financial consequences of low employee engagement are staggering. Gallup estimates that disengaged employees cost U.S. companies $483 billion annually due to lost productivity. Globally, the figure reaches a staggering $8.8 trillion.

Additionally, low engagement leads to:

  • Higher turnover: 24% higher than organizations with high engagement (Gallup)

  • Increased absenteeism: Reduced productivity due to absences

  • Damaged employer brand: Difficulty attracting and retaining top talent

The Human Costs of Low Engagement:

Beyond financial losses, low engagement has significant human costs. As "The Impact of Employee Engagement on Physical and Mental Health" by Harvard Business Review highlights:

  • Increased stress and anxiety

  • Physical health risks: Heart disease, digestive issues, sleep disorders, weakened immune system

  • Strained relationships: Negative emotions from work can impact personal life

Building a Mentally Healthy Workplace:

Investing in a comprehensive mental health program is not just a moral obligation; it's a strategic imperative. A supportive culture where employees feel valued, informed, and empowered is essential. This includes:

  • Purpose-driven work: Ensure employees understand how their work contributes to the organization's mission.

  • Growth opportunities: Provide training, development, and career advancement paths.

  • Accessible mental health resources: Offer internal and external support, including coaching, counseling, and tools.


By prioritizing mental health and employee engagement, organizations can create a more productive, sustainable, and fulfilling workplace.

 
 
 

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