Deloitte Finds Positive ROI for Mental Health Programs

Companies that implement robust mental health programs see a significant return on investment within three years, according to new research from Deloitte Canada.

The first-of-its-kind research found companies with mental health programs in place for one year had a median annual ROI of $1.62 for every dollar invested. For companies with programs in place for three or more years, the median annual ROI is more than double—valued at $2.18 for every dollar spent.

The report, The ROI in workplace mental health programs: Good for people, good for business, explores historical investment and savings data from seven large Canadian companies at various stages of rolling out mental health programs and supports.

It also includes interviews with these seven business leaders and three others, including Air Canada, ATB Financial, Bell, Canada Life, CIBC, Desjardins Group, Enbridge Inc., Energir, Husky Energy, and Morneau Shepell.

Deloitte Canada CEO, Anthony Viel, said there was both an economic and moral imperative for Canadian employers to take action, noting that the cost to the Canadian economy of poor mental health in the workplace is estimated to be $50 billion annually.

“The findings from this report provide a business case that is impossible to ignore. Organizations committed to delivering and measuring impactful employee wellness programs are creating healthier workplaces and seeing investments in their people’s mental health pay off.”

Key findings from the report include:

• Wellness programs are more likely to achieve positive ROI when they support employees along the entire spectrum of mental health—from promotion of well-being to intervention and care.
• Employers could achieve greater program ROI by prioritizing investing in higher-impact areas such as leadership training and preventive interventions, including psychological care benefits.
• If employers measure their baseline data and take stock of existing initiatives, many organizations would realize they have already started to use the right tools to strengthen workplace mental health.
• Putting in place mechanisms to measure performance can enable organizations to achieve desired program impact, improve adoption rates, and enhance decision-making.

Deloitte Canada Chief Economist, Craig Alexander, said the “blueprint for building a healthier labour force had been established.”

“To ensure Canada continues to grow its economy and improve its competitiveness on the global stage, employers across the country should act now and gain an edge—by investing in their people’s mental well-being. The business case is clear.”

The report acknowledges organisations that explore mental health programs can often struggle with where to start, and also often encounter common roadblocks once the process has begun.

As such, the report contains a blueprint for a phased program implementation and an approach to measure the outcomes of an employer’s workplace mental health programs.