Key Concepts > Costs and Benefits

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[1] Gordon, G. and D. Peterson. 2014. What works: Positive experiences in open employment of mental health service users. Auckland, New Zealand: Mental Health Foundation of New Zealand. p. 49.

[2] Gordon, G. and D. Peterson. 2014. What works: Positive experiences in open employment of mental health service users. Auckland, New Zealand: Mental Health Foundation of New Zealand. p. 39

[3] Health and Productivity Institute of New Zealand, The Health and Productivity Institute of New Zealand: Best practice guidelines. 2013, Health and Productivity Institute of New Zealand New Zealand. 

[4] Australian Human Rights Commission, 2010 Workers with Mental Illness: a Practical Guide for Managers. 2010: Australia.

Costs and Benefits

“ … the very act of dealing with a mental illness often gives people extraordinary strength of character.”

Mental Health Commissioner, Julie Leibrich

There are clear benefits for workplaces in retaining staff who experience a mental health problem during their working lives.

One New Zealand public sector employer comments:

“And the real world is that there are a vast number of people with mental illnesses but the world goes round, life goes on and you’ve got to accommodate them and some of them are brilliant. I mean Terrence is one of those finds that, that we’re extremely happy with." [1]    - Glen

A private sector employer has similar comments to make:

“He communicates well; he is a really hard worker. He is very intelligent; he is top quality and he is very well respected in the industry. He is a model type employee. Hopefully he will retire here." [2]    - Shazza

Denying the existence of mental health problems will affect both your profits and the smooth running of your workplace.

Benefits of good practice Costs of bad practice
Better productivity and increased sales Increased sick leave and attending work while sick
Improved creativity Greater employee conflict
Increased customer satisfaction Higher injury rate
Enhanced reputation as a good place to work Negative reputation as a bad place to work

Research-based evidence: 

  • Poor health is expensive for both employers and taxpayers, costing up to an estimated 15% of hours worked, or 8.5% of GDP. Workers with poor health cost their employers almost $2,000 per annum more than their healthy colleagues.[3]
  • Productivity is related to work engagement. Research completed by JRA in 2010 indicates that only 35% of New Zealand employees feel fully engaged in their work, and that less engaged employees take an average of four times as many sick days as those who are more engaged.[3]
  • Stress costs money. Australian research shows that 3.2 days per worker are lost each year through workplace stress, and that 25% of workers take time off for stress related reasons. Australian businesses lose $6.5 billion each year by failing to provide early intervention for employees with mental health problems.[4]