A thriving economy relies on a productive and engaged workforce. However, when employees grapple with mental health challenges their capacity to contribute effectively decreases — and this has critical consequences in business and beyond.
The economic impact of poor mental health is not a matter of speculation; it is backed by alarming statistics. Research indicates that unaddressed mental health conditions cost South Africa’s economy an estimated R161bn a year.
While this is not a uniquely South African issue — with a staggering 12-billion workdays lost globally due to the debilitating effects of depression and anxiety alone — the economic and social costs of neglecting mental health in the workplace are simply too high to ignore.
Stress, depression and anxiety are the most common mental health conditions affecting employees, according to recent Life Health Solutions data.
What’s more, there has been a sharp rise in mental health challenges in 2024 compared with the previous year — with as many as one in three people reporting experiencing or living with a mental health condition. The data shows that women consistently reported a higher prevalence of risk cases, presenting mostly with suicidal thoughts.
Other risk cases in males and females are driven by depression, stress and relationship difficulties, substance abuse and financial instability. However, it doesn’t mean men are less affected by the same risk factors. Societal expectations and stigma surrounding men’s mental health may lead to underreporting and a reluctance to seek help.
The data paints a picture of mental health challenges brewing in South African workplaces. The alarming rise in employees flagged as potential risks to themselves, others or their companies demands immediate action
The data also reveals a trend of young people experiencing mental health challenges. In 2023, individuals aged 30-39 constituted the largest group presenting with risk, while a concerning 11.33% were under the age of 19.
Poor mental health doesn't just impact the individual — it creates a ripple effect that touches every corner of the workplace. Firstly, productivity takes a direct hit. Employees struggling with their mental health can sometimes have trouble concentrating, decreased motivation and poorer work quality — all of which could negatively affect company performance if left unchecked.
Secondly, absenteeism and presenteeism become increasingly prevalent. Mental health challenges often lead to employees taking more sick leave, disrupting workflow and increasing the burden on colleagues. Data shows a sharp increase in self-reported mental health-related absenteeism, jumping from 10.6% to 17.6% over the past three years. Even when present, employees may struggle to engage fully, leading to presenteeism — a hidden cost that further erodes productivity.
Finally, neglecting employee mental health fuels the costly cycle of employee turnover. When individuals feel unsupported and overwhelmed they are more likely to seek opportunities elsewhere. This constant churn necessitates costly recruitment, onboarding and training processes, placing a significant strain on resources.
What’s more, replacing an employee can cost a company anywhere from one-half to two times their annual salary. This underscores the importance of investing in employee wellbeing to retain valuable talent and mitigate the high cost of turnover.
The shift to remote work, while offering flexibility, has inadvertently created an “always on” culture. Without clear boundaries, the workday bleeds into personal time. Today, more and more people are struggling to switch off, working longer hours and sacrificing personal time to meet ever-increasing demands.
This constant pressure-cooker environment is taking its toll. Employees are reporting heightened stress levels, difficulty achieving work-life balance, and a feeling of being overwhelmed. While the term burnout might not always be used, the indications are clear: fatigue, difficulty concentrating and a decline in overall wellbeing.
The data paints a picture of mental health challenges brewing in South African workplaces. The alarming rise in employees flagged as potential risks to themselves, others or their companies demands immediate action.
Businesses must recognise that prioritising employee mental health is not merely an ethical obligation but a strategic business imperative. By investing in employee wellbeing programmes (EWPs), which offer help for employees whose personal and professional problems interfere with their performance, companies can have a more engaged, productive workforce.
In fact, the data reveals a positive impact on workplace productivity when mental health challenges are addressed. Before intervention, nearly one in five employees struggling with mental health challenges self-reported increased absenteeism, and almost 50% experienced presenteeism. Following EWP implementation, self-reported absenteeism related to mental health dropped to just 6%, while presenteeism decreased to 13%.
When employees feel supported and valued their motivation, creativity and overall job satisfaction increase, leading to improved performance and a more positive work environment.
For too long the conversation around mental health has focused on mere survival. We talk about getting by, coping and managing — essentially, just not falling apart. But isn't it time we aim higher?
True mental health is about thriving, not just surviving. It’s about waking up excited for the day, feeling deeply fulfilled by work, and experiencing a life brimming with meaning and purpose. By creating a culture of wellbeing, companies can unlock the full potential of their workforce, leading to increased productivity, engagement and innovation.
But it’s not up to businesses alone. Employees must prioritise their mental health and seek help when needed. This includes setting healthy boundaries between work and personal life, practising self-care, and reaching out to support networks or mental health professionals. Mental health is not a luxury but a fundamental right. Ignoring this silent reality is not an option.
It’s time to prioritise mental health and create work cultures that value both performance and wellbeing — for the benefit of our workforce, our economy and our people.
• Joseph is a counselling psychologist at Life Health Solutions
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