Indian Companies Incur $14 Billion Cost Yearly Due To Employees' Poor Mental Health, Says Deloitte Survey

Poor mental health amongst employees costs Indian employers around $14 billion annually, arising due to absenteeism, lower productivity and attrition, according to Deloitte's Mental Health Survey. Over the years, mental health issues have seen a steady rise globally, accentuated further by the onset of COVID-19.

According to the World Health Organisation (WHO), India accounts for nearly 15% of the global mental health burden, as per PTI report.

To analyse the current state of mental well-being amongst Indian employees, Deloitte Touche Tohmatsu India LLP (DTTILLP) undertook a survey titled 'Mental health and well-being in the workplace', it said in a statement.

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The survey, which involved nearly 4,000 workers. dives into the top stressors from an employee's perspective, along with an estimate of the yearly economic cost to Indian companies arising from poor employee mental health. The survey was conducted between November last year and April this year and was released yesterday, as per Reuters.

Around 47% of professionals surveyed consider workplace-related stress as the biggest factor affecting their mental health, followed by financial and COVID-19 challenges.

"These stressors manifest in multiple ways, affecting both the personal and professional facets of an individual's life; often with associated social and economic costs," it said.

The report estimates that "poor mental health amongst employees costs Indian employers around USD 14 billion per year due to absenteeism, presenteeism, and attrition".

Presenteeism is the phenomenon of attending to work while under mental stress and hence, performing at low productivity.

"These costs build up over time and are incurred when poor mental health impacts how individuals deal with day-to-day stressors and are unable to thrive in their work environment," the statement said.

According to the survey, 80% of the Indian workforce has reported mental health issues during the past one year.

Despite these alarming numbers, societal stigma prevents around 39% of the affected respondents from taking steps to manage their symptoms.

Additionally, the survey found that at the workplace, 33% of all respondents continued to work, despite poor mental health, while 29% took time off and 20% resigned to better manage their mental health, PTI report mentioned about the survey findings.

Also Read: PwC Survey Says 34% Of Indian Employees Want To Change Job

Deloitte Global CEO's Statement

Commenting on the findings of the study, Punit Renjen, Deloitte Global CEO, said, "Mental health has been a real issue. The challenges of the past two-plus years have brought conversations about mental health at work to the forefront", as per PTI.

The study, he said, demonstrates that businesses must prioritise the mental health and well-being of their people.

"It is essential that senior leaders play a major role in de-stigmatising mental health challenges within their organisations. We need to take the necessary steps to create an environment where employees' well-being is prioritised, and they have access to the support they need so that everyone can thrive," he said.

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