The ROI of mental health – Why is it worthwhile for companies to invest in employee wellbeing?

For a long time, mental health was considered a “soft factor”: something that HR talks about, but CFOs pay less attention to. In recent years, however, the picture has changed completely. Employee wellbeing is not just a matter of social responsibility or employer branding, but a tangible, measurable business factor. A growing body of evidence shows that investing in mental health pays off and has a tangible impact on turnover, productivity and financial performance.

The business importance of mental health

Stress, burnout and mental strain are among the most common causes of reduced employee performance. According to WHO data, depression and anxiety cause more than $1 trillion in losses to the global economy each year due to lost productivity. The impact at the company level is also striking:

• the number of sick days is increasing,
• concentration and creativity are declining,
• the rate of errors and accidents increases,
• and ultimately, employee engagement deteriorates.

All of this has a direct impact on revenue and competitiveness.

ROI in numbers – what does the research show?

International studies are clear: wellbeing programmes pay for themselves.

• According to Deloitte, every dollar spent on mental health yields an average of £4 in savings for companies.
• Based on WHO research, programmes invested in the treatment of depression and anxiety pay for themselves at a ratio of 1:4.

The relevance of this topic is also growing in Central and Eastern Europe: younger generations specifically expect their employers to pay attention to their wellbeing. This has a direct impact on staff turnover and retention.

CFO perspective: cost or investment?

The key question for financial managers is: how can the impact be quantified?

Here are a few examples:

• Staff turnover: if a company loses 100 people a year and it costs an average of £5,000 to recruit and train a new employee, even a 10% reduction in staff turnover can mean savings of hundreds of thousands of pounds.
• Presenteeism: the employee is physically present but not productive. An employee suffering from mild burnout can produce up to 30% less value – this is often more expensive than sick leave.

HR perspective: people and culture

From an HR perspective, the focus is more on people. Wellbeing programmes can include, for example:

• Employee Assistance Programme (EAP),
• stress management workshops,
• coaching and mental health support,
• wellbeing days or flexible working hours.

The wellbeing of managers is a key issue: if they burn out, it has a direct impact on the entire team. Therefore, it is the responsibility of HR to support not only employees but also management.

Joint strategy: HR + CFO cooperation

• Supporting mental health works well when HR and the CFO work together.
• HR provides the programmes and measurability.
• The CFO calculates and justifies the return on investment.

Common KPIs can be introduced, e.g.:

• turnover rate,
• number of sick days,
• employee satisfaction scores.

Practical tips for companies

Even small steps can go a long way:

• Anonymous survey: assess how affected the team is by stress and burnout.
• Short wellbeing workshops: cost-effective yet effective.
• Open communication: normalise conversations about mental health.

The long-term strategy integrates wellbeing into the corporate culture, rather than treating it as a one-off campaign.

Supporting mental health is not a luxury, but an investment. It is an investment that simultaneously strengthens employee commitment, reduces costs and improves the company’s financial results. HR and financial management can work together to make this process a success – the question today is no longer “can the company afford it”, but “can it afford not to address it?”.