Blog / Workplace Wellbeing

May 25, 2020

16 Alarming Statistics on the Hidden Costs of Mental Illness for Employers

2 minute read

Workplace Wellbeing

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Today, mental illness impacts 1 in 4 Americans. Most employers recognize that mental health conditions—ranging from depression and anxiety to alcohol misuse and drug abuse—drive up costs while decreasing productivity.

However, many people assume these costs are solely around prescriptions or the per-employee-per-month (PEPM) expense of a wellbeing program. Here is a look at some of the hidden costs of mental illness for employers.

Poor employee mental health leads to high employer medical costs

  • Behavioral health claims are responsible for a 20% increase in employer mental health spending.

Poor employee mental health leads to increased absenteeism

  • A depressed employee’s work performance is impaired an average of 20% of their time.

Employee mental health affects turnover costs

  • Employees experiencing depression are two times more likely to leave a job than their non-depressed colleagues.

Effective mental health care is often challenging to find

Mental health concerns affect healthy employees too

  • 8.4 million adults provide unpaid (“informal”) assistance to individuals with mental health problems.

How to think about mental health ROI

As you review mental health benefits options, here are a few questions to help you understand the true ROI of a solution:

  • Is the solution clinically validated and evidence-based? It’s important to have clinical proof behind any solution designed for your employees who are struggling with real clinical issues.
  • Does the solution have higher utilization than your current EAP? Many existing solutions use “vanity” metrics such as website visits to demonstrate engagement. Push your vendor to understand how they measure member engagement and satisfaction.
  • Does the solution only offer one type of treatment, such as access to providers? Many vendors take a “one size fits all” approach to treatment. Employees may also not believe they need to see a provider right away. Choose a solution that offers a variety of treatments to fit the entire spectrum of mental illness.

Spring Health uses data to get each person the right treatment, from the start. We combine an intelligent data platform with a vetted provider network to eliminate all barriers to mental health. Our Precision Mental Healthcare approach is personalized, clinically validated, and financially sustainable. Request a demo to learn more about how Spring Health can support your team.


About the Author

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Spring Health

Spring Health is making mental health fundamental by eliminating every barrier to care. Our comprehensive digital platform provides employers and health plans with diverse, inclusive care for individuals and families.