Part one: Investing in employee mental health is imperative for everyone’s success

Conversations around psychological safety have been on the rise in recent years. And while it’s positive that there’s surging interest in the topic, its prevalence is due to the fact that many people are struggling with it.

For individuals, psychological safety reduces stress and improves confidence and job satisfaction — but employers also benefit when their employees feel psychologically safe. Psychological safety is the ability to speak up with questions, concerns, ideas and even mistakes in the workplace without fear of being shut down. This extends to the ability to innovate, ask for change and raise concerns. 

If employees don’t feel safe and their overall health prospects are poor, this can contribute to a downward spiral. That’s why it’s crucial for employers to understand mental health and take it seriously.

Here’s a closer look at mental health, and how it intersects with other elements of health to impact employee engagement, productivity and performance.

What does mental health really mean?

Though the term “mental health” is used frequently, it’s helpful to unpack what exactly it refers to. Mental health encompasses psychological, emotional and social wellbeing. It influences how people feel, think and act as they cope with the ups and downs of life.

The World Health Organization (WHO) emphasises that mental health has intrinsic and instrumental value, enabling people to make decisions and build relationships — and it’s therefore defined as a basic human right. Good mental health empowers people to feel happier, function well, work effectively, have stronger relationships and thrive.

The connection between mental and physical health

Too often, “psychological” and “physical” are seen as separate states — but the brain is part of the body, and mental and physical health affect one another in a myriad of ways. For example, depression increases the risk for many chronic physical conditions, including heart disease, diabetes and stroke. Similarly, chronic conditions can increase risk for developing mental health conditions.

Conversely, there’s extensive evidence that physical activity improves mental health. Daily exercise can boost sleep quality and protein synthesis, with a positive feedback loop for the body and brain. It can also increase an individual’s sense of vigour and vitality, preparing them to be energised and productive. This can enhance cognition for processing, retaining and concentrating on information.

The connection between mental and financial health

Worries about money, especially long-term debt or job loss and other life-changing events, can often cause or worsen depression, anxiety and stress. It’s easy to become trapped in a cycle where perilous financial stress increases mental health issues, which in turn make managing finances even more difficult. 

Almost half of New Zealanders (48 per cent) have lost sleep or experienced stress due to their finances. And according to the Columbia University Department of Psychiatry, a lack of adequate sleep has been shown to amplify negative emotional reactions to stress and reduce positive feelings.

How mental health relates to workplace performance

Workers in New Zealand with diagnosed mental health conditions experience the most significant losses in productivity compared to the national average. For example, employees with anxiety diagnoses lose about 68 working days of productivity annually; they also have an average mental health score (43.8) that’s notably lower than both workers without mental health diagnoses (67.8) and the national average (59.7).

Workers diagnosed with depression face a similar disparity, losing 64 working days per year; they also have a similarly reduced mental health score (43.0) — and workers diagnosed with a mental health condition other than anxiety or depression lose 64.5 working days per year. They also have the lowest mental health score (39.0) — nearly 21 points beneath the national average.

Employers may want to listen. Poor mental health costs the New Zealand economy about 5 per cent of the gross domestic product (GDP) each year. And while providing mental health support can come at a cost, that expense is dwarfed by the cost of ignoring employee mental health. Failing to support good mental health in the workplace equates to lost money as a result of reduced productivity, absenteeism and increased healthcare costs — and mental health issues are the cause of more missed workdays and job performance issues than many other common chronic health issues.

Organisations that prioritise employee wellbeing and health see increased engagement, productivity and job satisfaction because employees are more likely to be motivated and committed in a supportive environment. By promoting mental and physical health, employers also help reduce stress and burnout, fostering the kind of positive organisational culture that can attract top talent and boost performance overall.

Meanwhile, investing in employee mental health pays off for employers. A survey conducted by Workplace Wellbeing NZ in early 2024 found that 72 per cent of employees report that workplace wellbeing initiatives significantly influenced their decision to stay with their employer. Both current and prospective employees find companies that prioritise employee wellbeing by offering flexible working arrangements, mental health support, gym memberships and wellness programmes more appealing.

Empowering employees with mental health support

The central estimate of the return on investment (ROI) ratio for employee assistance programmes (EAPs) in New Zealand is 3.6 to 1 — meaning investing in these programmes yields NZ$3.60 for every $1 spent. This is a strong result compared to market return on capital investment. This ratio is consistent with studies from the UK, US and Australia.

Organisations should ensure employees not only have access to mental health support and services, but can access them on their own terms by making them easily available through digital channels at all hours of the day.

TELUS Health brings a holistic approach to employee health

Designed specifically with employee mental health in mind, TELUS Health EAP extends mental health supports, work-life services and wellbeing engagement tools to both employees and their immediate families. Available anytime, anywhere via the TELUS Health One app, employees have access to professional counselling, content library and self-guided digital programmes designed to help them navigate life’s challenges, transitions and milestones.

Learn more about the other factors and facets of holistic health, and how TELUS Health can help support both employers and employees.