The Cost of Stress and Negative Mental Health
By Jacqueline M. Raxter, MA, LMSW, LPC
In addition to its impact on an employee’s physical and mental health, stress costs businesses and the economy billions of dollars annually. Stress-related absenteeism and presenteeism (when employees are physically at work but not fully engaged due to illness, injury, or other medical conditions) contribute to decreased productivity, lower output, higher employee turnover, and inflated healthcare costs. As workplace stress and mental health concerns become more apparent, it’s clear that fostering a healthier work environment can greatly benefit employees and reduce long-term business costs.
Key statistics highlight the magnitude of the issue:
• An estimated 1 million workers are absent every day due to stress.
• Job stress is estimated to cost U.S. industries more than $300 billion annually in absenteeism, reduced productivity, and accidents.
• Employees lose over five work hours each week due to stress-related thoughts and concerns.
• Work-related stress contributes to $190 billion in annual healthcare costs in the United States.
• While being employed generally supports mental health by providing purpose, income, identity, and routine, workplace factors can compromise this well-being.
• Workplace Stress and Its Impact on Mental Health
Stress is defined as the body’s nonspecific response to demands placed upon it. However, it’s more complex than that. Stress arises from life changes, especially significant ones, and from situations where individuals feel they have little control. If left unmanaged, stress can lead to severe mental and physical health issues, including cardiovascular disease and cancer. In extreme cases, stress can be fatal, robbing individuals of the satisfaction they should gain from their labor.
Burnout occurs when chronic work stress persists over time. The World Health Organization (WHO) defines burnout as an “occupational phenomenon” characterized by exhaustion, negative feelings toward one’s job, and reduced efficacy at work.
Discrimination in the workplace—based on race, gender, sexuality, socioeconomic class, religion, age, or disability—can also harm mental health, in addition to being illegal. Discrimination against individuals with mental health disorders is also unlawful.
Stigma surrounding mental health issues remains a significant barrier. Employees may face insensitive comments or assumptions from colleagues if they request time off for mental health reasons. This lack of support only exacerbates the harm caused by stress.
A toxic work environment, which can foster high turnover and low productivity, often results from employee depression and anxiety. Furthermore, employees can be affected by personal stressors unrelated to work, such as relationship issues or financial strain, which can spill over into their professional lives and manifest as irritability, distractibility, or emotional instability.
Creating a Healthy Workplace
A workplace that prioritizes employee mental health benefits both the workers and the business. Employers can foster a positive environment by educating leadership and employees, establishing policies that reflect workplace values, and accommodating individuals with mental health issues or disabilities. By setting the foundation for a healthier work environment, business owners can promote good mental health, prevent burnout, and create a win-win situation for both employees and the organization.
Here are some strategies to improve workplace mental health:
• Promote work-life balance: Encourage employees to take full advantage of their allotted leave time each year. Establish clear “off” hours that are respected by colleagues and leadership.
• Encourage help-seeking behavior: Ensure employees feel comfortable asking for help when dealing with work-related challenges. Open communication is key to resolving workplace issues.
• Reject fear as a leadership tool: Using fear as a motivator can increase stress, feelings of helplessness, and alienation while lowering self-esteem and team cohesion.
• Foster clear communication: Ensuring clarity in communication can reduce unnecessary conflicts, boost productivity, and align team members’ efforts.
• Respond proactively to crises: Be sensitive to external events, such as natural disasters or tragedies like school shootings, that may affect your employees’ mental health. Understanding the broader context can help you support employees in times of need.
Employer-provided benefits can significantly contribute to an employee’s well-being. Healthcare insurance, paid time off (PTO), and employee assistance programs (EAP) are tangible ways to create a health-conscious work culture.
Reducing Stigma and Providing Resources
Educating workplace leaders and employees about mental health resources can reduce stigma and promote an atmosphere of support. Employees may fear retaliation or job loss if they seek mental health care. By providing confidential resources, offering training for leadership, and making self-assessments available, businesses can help employees feel more comfortable seeking the help they need.
Understanding Stress and Mental Health Care
Stress is not a disease, but a natural response to change. Our bodies produce a cascade of physiological changes to help us react to perceived threats, often referred to as the “fight or flight” response. Under normal circumstances, the body returns to a relaxed state within an hour. However, chronic stress can impair physical and mental health. People who remain in a heightened state of stress for long periods may struggle with task management, experience more frequent illnesses, and are more susceptible to injury.
Does mental health care help? Absolutely. Mental health encompasses emotional, psychological, and social well-being, and it affects how we think, feel, and act. It also shapes how we handle stress, relate to others, and make decisions. Mental health is important throughout every stage of life. Seeking professional help allows individuals to work with licensed mental health professionals who are equipped to identify and address the signs and symptoms that may negatively affect an employee’s performance. A therapist can assist with strategies to create a healthier work-life balance, helping individuals overcome workplace stress and improve overall well-being.
Take Action for Better Mental Health
Taking the proactive step of reaching out for support can make a significant difference in managing stress and improving mental health. Sharing the importance of good mental health with those you care about can create a more supportive and understanding environment both inside and outside the workplace.
Jacqueline Raxter is a Behavioral Health Program Manager at the Chaldean Community Foundation. Bi-lingual, licensed professional therapists are available to support Michigan residents aged 13 and up. Services are offered in a confidential setting by appointment. Healthcare insurance status is not a barrier. For more information or to request printed materials on Project Light services at the Chaldean Community Foundation, please call (586) 722-7253 Monday through Friday from 8:30 a.m. to 5:00 p.m.