Workplace Wellbeing

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

Poor employee mental health leads to significantly higher medical costs for employers—as well as increased absenteeism, turnover, and productivity.

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Spring Health
Clinically reviewed by
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    Today, mental illness impacts 1 in 4 Americans. Most employers recognize that mental health conditions—ranging from depression and workplace 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

    Poor employee mental health leads to increased absenteeism

    Employee mental health affects turnover costs

    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.
    • 70% of employed informal caregivers had to reduce work hours, find a less demanding job, turn down a promotion or take a leave of absence / retire early.

    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 a comprehensive mental health solution for employers and health plans. Unlike any other solution, we use clinically validated technology called Precision Mental Healthcare to pinpoint and deliver exactly what will work for each person—whether that’s meditation, coaching, therapy, medication, and beyond. Today, Spring Health supports over 4,500 organizations, from startups to multinational Fortune 500 corporations, and is a preferred mental health provider to companies like General Mills, Bain, and DocuSign.

    About the clinical reviewer
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