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

Across the EU, mental health has become a major economic and social concern impacting public health. 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.

The 2022 Occupational Safety and Health (OSH) Pulse Survey conducted by the European Agency for Safety and Health at Work (EU-OSHA) shows that 27 percent of workers experience stress, anxiety or depression that’s either caused or made worse by work. 

Poor mental health significantly impacts both employees and organisations, with recent European studies showing that mental health-related sick leave now accounts for 27 percent of all workplace absences. When employees feel unsupported, it creates a downward spiral affecting productivity, engagement and retention, ultimately costing EU businesses billions annually — making mental health support a critical business imperative rather than just a wellbeing initiative.

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. The World Health Organization (WHO) defines mental health as “a valued source of human capital or wellbeing in society [that] contributes to individual and population health, happiness and welfare, enables social interaction, cohesion and security, and feeds national output and labour force productivity.” 

The WHO further 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. And the European Council defines good mental health as “a state of wellbeing in which people can realise their abilities, cope with stress, work and contribute to community life.”

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. People with mental health challenges are more likely to develop preventable physical health conditions such as heart disease. This can be caused by a range of factors, including genetics, low motivation influenced by mental health or the medications used to treat it, difficulty with planning, lack of support for creating behavioural change and inadequate medical care. 

Mental health issues can also cause physical symptoms. For example, headaches, fatigue and digestive problems are all associated with depression, highlighting the connection between mental and physical health.

Exercise can help. It boosts both physical and mental health by releasing endorphins — improving mood, energy and focus, even with short sessions like a 10-minute walk. It can also increase an individual’s sense of vigour and vitality, preparing them to be energised and productive. This can help enhance cognition for processing, retaining and concentrating on information.

The connection between mental and financial health 

Favorable financial conditions like being able to manage money well and feeling financially secure contribute to self-reported mental and physical health, and are also associated with reduced risk for depression — even after accounting for baseline health issues and other factors. Financial safety has also been linked with lower anxiety levels.

A recent study found that people experiencing financial hardship had a greater risk of failing to meet sleep duration guidelines and poor sleep quality — and were more than twice as likely to experience insomnia — compared to those without financial difficulties. Insufficient sleep quality has been linked to a host of acute and chronic conditions, including higher accident risk, depression, addiction disorders, cardiovascular disease and diabetes. 

How mental health relates to workplace performance 

In a recent survey about mental health and world events, 89 percent of respondents said they consider promoting mental health just as important as promoting physical health. Workplaces have a key role to play — according to experts at the Public Mental Health research programme of the National Institute of Mental Health, work stress is a key risk factor for mental health.

In the September 2024 edition of the TELUS Mental Health Index for Pan-Europe, productivity was found to be closely linked to mental health — employees with lower mental health scores tended to suffer greater declines in productivity, whereas those with higher scores experienced smaller losses.

Employers may want to listen. Research shows that the majority of the EU’s happiest countries are also the most productive, highlighting the importance of prioritising employee happiness and wellbeing in the workplace.

And while mental health support for employees comes at a cost, experts estimate that absenteeism and burnout cost the EU and US economies over €1.8 trillion in lost productivity every year. Meanwhile, Bain & Company reports that 65 percent of employees are more likely to stay with an organisation that prioritises their wellbeing. Leading employers demonstrate this priority by integrating mental health resources such as stress management workshops, counselling services, digital wellness programmes and mental health champions into benefits packages. These kinds of initiatives can help show employees a higher level of commitment and care, and foster loyalty and retention. 

Empowering employees with mental health support 

Ample research demonstrates the value of mental health support. For example, a comprehensive analysis of the economic impact of mental health initiatives in the workplace found that such initiatives offer substantial benefits, with an average return on investment (ROI) of 4 to 1. This study also shows that effective support programmes reduce turnover and absenteeism, improve productivity and enhance employee engagement and satisfaction — all helping to support stronger performance and more positive organisational outcomes overall. 

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 and work-life services 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.