New Delhi:Addressing employee mental health in corporations could unlock an annual economic opportunity of improved employee health and well-being in India, totalling up to $350 billion annually, says a new report.
Titled ‘Transforming Corporate Mental Health: A Roadmap to Action’, the document has been published by The Live Laugh Love Foundation. It combines data, industry insights, and the lived experiences of leaders who are investing in the mental health of their employees.
“The evidence shows that progress on mental health takes more than short-term fixes,” said Anisha Padukone, LLL’s Chief Executive Officer. “It calls for leadership commitment, systemic integration, and a clear roadmap that links well-being with performance.”
The report shows six key areas through which mental health crises can be understood in Indian workspaces. The first three include attrition, absenteeism, and presenteeism, which negatively impact economic growth. Attrition has resulted in the loss of $12-14 billion annually from employee turnover, while absenteeism has cost Indian corporates $8.5 billion annually.
Employees who are present in workplaces despite struggling with mental health issues also add to the losses. Up to $158 billion is lost annually from productive days, as employees go to work or remain at work when ill, to show that they are hard workers.
When businesses and organisations invest in their employees’ mental health, they can actually drive up revenue. The report shows that the productivity gains can be estimated at anything between $21–151 billion annually. Increased efficiency, creativity, and innovation drive this productivity.
When employees’ mental health is taken care of, they also tend to stay with their employers longer. The retention gains are estimated at $1.9 billion annually.
Investing in workplace mental health can also drive up a company’s attractiveness to prospective employees. A company can gain an estimated $12 billion annually from a healthy workplace culture.
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What corporates must do
Indian corporates are staring at a severe mental health crisis. About 59 per cent of employees report burnout symptoms, while nearly 50 per cent cite workplace stress as the biggest factor affecting their mental health, as per reports by McKinsey Health Institute in 2023 and Deloitte India in 2022.
The LLL report classifies workplaces in three categories, based on their level of engagement with workplace mental health:
- Unaware or sceptical: companies that do not yet view mental health investments as integral to business outcomes.
- Early movers: companies that have already begun introducing awareness campaigns.
- Interested but under-resourced: companies that acknowledge the importance of mental health but lack clarity on how to act.
The action report also lists the ways in which organisations can achieve their mental health goals, starting with surveys and focus groups to find out their real mental health needs. Leaders are also advised to integrate “holistic mental health practices” and create a “culture of care”.
What will ultimately change the narrative is a shift from reactive support to proactive resilience-building. This can be done through empathetic leadership, inclusive communication, and continuous monitoring.
(Edited by Prasanna Bachchhav)