Benefits and Compensation

The Very Real Corporate Impact of Employee Depression

Depression and other mental health issues have long been considered a taboo topic of discussion, both in the workplace and in society more generally. People traditionally have not been very open about their mental health, especially with employers, both for fear of social stigma and being seen as unfit for their job.

depression in the workplace

Attitudes toward mental health issues, though, have advanced and matured significantly in recent years. That makes both the prevalence and impact of depression and other mental health issues more visible.

How Prevalent Are Mental Health Issues and Depression in the Workforce?

According to the October 2023 TELUS Mental Health Index, nearly one-in-four (23 percent) workers have a high mental health risk. Another 41 percent have a moderate mental health risk. In addition, 14 percent of workers report being diagnosed with depression specifically, while another 7 percent believe they have undiagnosed depression.

Why Should Employers Care About Depression in the Workplace?

In addition to issues of stigma, one reason discussions around mental health have traditionally been avoided in the workplace is that mental health is seen as a very personal matter, and our society values a separation between our work lives and our personal lives.

But it’s not that simple with mental health, because mental health issues can and do have a big impact on employees’ ability to perform their jobs. According to the TELUS report, U.S. workers with diagnosed depression lose 51 working days in productivity per year. Considering there are just 260 working days per year (not counting vacation time), that represents nearly 20 percent of an employee’s working days. That’s a big impact to any employer.

In addition, depression and other mental health issues can contribute to lack of engagement and higher turnover, not to mention the potential for conflict in the workplace.

What Should Employers Do to Support Workers?

Mental health shouldn’t be kept in the dark. While employers shouldn’t pry into employees’ personal lives, they need to be aware of the high level of mental health issues impacting American workers—and the organizations they work for.

This isn’t a problem that impacts just one or two employees. Statistically, according to the TELUS data, between one-in-five and one-in-four employees might suffer from depression, either diagnosed or undiagnosed. Employers should recognize the prevalence of this issue and offer resources to help employees cope more effectively. This could include greater employee outreach, employer-sponsored access to mental health resources, and greater flexibility and work-life balance, for example.

Employers have an opportunity to both recognize the prevalence of mental health issues and concerns and take steps to help employees address their mental health concerns for the wellbeing of employees and the overall health of the organization.

Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.

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