Depression is costing UK business £1,000 per employee per year

-

shutterstock_71532082

  • A quarter of people in the UK (26%) have been diagnosed with depression according to the UK IDEA survey report (European Depression Association (EDA), Impact of Depression in Europe Audit Survey (IDEA Survey), 2012)
  • The wider economic cost of mental illness in England has been estimated at £105.2 billion each year. This includes direct costs of services, lost productivity at work, and reduced quality of life.
  • The cost of poor mental health to businesses is just over £1,000 per employee per year, or almost £26 billion across the UK economy.
  • In 2008/9, the NHS spent 10.8% of its annual secondary healthcare  budget on mental health services, which amounted to £10.4 billion. Service costs, which include NHS, social, and informal care costs amounted to £22.5 billion in 2007 in England.
  • 15% of people in UK have taken time off due to depression according to UK IDEA survey report
  • In the UK were 29.84 million people in employment aged 16 and over from May-July 2013 according to Office for national stats. That means 7.8m working people could have been diagnosed with depression in UK and 4.5m working people in UK could have taken time off due to depression
  • More than 34.6 million employees in the European Union could be at risk of taking time off work due to depression and its cognitive symptoms, with a potential loss of one billion working days.

The Target Depression in the Workplace initiative aims to recommend concrete tools and resources that will enable company executives to better identify and support employees with depression as well as promote good mental health in the workplace.

Senior executives from some of the largest employers across Europe are spearheading a  programme to ‘Target Depression in the Workplace’. A group of major European employers today launch a drive to combat the impact depression and its cognitive symptoms have in the workplace. One in 10 employees in Europe take time off work due to depression, which equates to more than 34 million people at risk of missing work in Europe. This is the first time senior European executives have come together to assess and address depression in the workplace.

“The catastrophic impact depression can have on the individual and their family is well acknowledged, but largely unresolved is the impact depression has on work,” said Professor Martin Knapp, Professor of Social Policy and Co-Director of LSE Health and Social Care. “New research has shown that an average of 36 days is taken off work per episode of depression.  Across the European working population this could mean something approaching 1 billion working days lost to depression.  The economic impact is potentially enormous, and this does not take into consideration the reduced productivity of people who keep on working while they are depressed.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Depression, the leading cause of disability worldwide, has a direct impact on company profit due to presenteeism (attending work whilst ill) and absenteeism (taking time off work). The cognitive symptoms of depression – concentration difficulties, indecisiveness, and/or forgetfulness – are present up to 94% of the time in an episode of depression and cause significant impairment in work function. People with depression report on average 5.6 hours per week of total health-related lost productivity time more than those without depression.

Some of the largest employers in Europe, including Royal Mail Group Ltd, BT Group plc, Barclays, Unilever and Deutsche Post DHL, that collectively employ over 600,000 people in Europe and generate revenues of almost €200 billion annually, have formed a Steering Committee with the aim to come up with concrete action to help other businesses reduce the impact of depression. The Steering Committee includes representation from the Federation of European Employers and the International Labour Organization.

“Mental health is the dominant workplace health issue of our time.  Work can either be beneficial or harmful to mental health and employers can make a major contribution to the wellbeing of society by their actions,” said Dr Paul Litchfield, BT Group plc Chief Medical Officer and Target Depression in the Workplace Steering Committee Advisor. “Combatting depression has been a priority for BT for many years and is an integral part of our Mental Health Framework which has delivered significant business benefits as well as helping very many of our people.  Through the Target Depression in the Workplace initiative, we are looking forward to working with other employers to drive best practice to a higher level and to disseminate it as widely as possible.”

Latest news

Workplace belonging ‘rises to highest level in a decade’, but many workers still feel excluded

Most UK employees now feel a sense of belonging at work, but many still do not feel consistently valued or included.

Workers turning down jobs over company reputation as Gen Z demands values match

Younger workers are increasingly rejecting employers over company culture, leadership behaviour and reputation before interviews even begin.

Bill Winters on ‘lower-value human capital’

“It’s not cost-cutting. It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in.”

Half of UK workers say their jobs are damaging their health

Rising levels of stress, fatigue and inactivity are affecting workers across the UK, with growing concern over long-term health and job performance.
- Advertisement -

Transgender staff excluded from single-sex toilets under new equality guidance

Transgender people must be excluded from single-sex toilets and changing rooms that correspond with their lived gender under updated...

Simon Coker: Closing the emotional gap – why AI in the workplace is as much a human challenge as a technological one

AI adoption is transforming how work gets done across every sector. But its deeper impact is less visible: it is reshaping how people feel about their work.

Must read

Lee Gruskin: Risk benefits for the over-65s

In June, ONS statistics revealed that the number of...

Arran Heal: Why good workplace cultures keeps winning over cash for employees

"In the challenging years to come, it is toxic cultures that will destroy businesses over time."
- Advertisement -

You might also likeRELATED
Recommended to you