When we talk about productivity, people boast about grinding through hour after hour, surviving on little to no sleep. There’s a strange pride about how much suffering you can put yourself through to get ahead. It’s “hustle” culture 101.

Nor is it confined to entrepreneurs; even in the professions and corporate environment, mental health is seen as a luxury for those who don’t want to succeed. Part of getting to the top meant that you’d have to struggle a bit in the short term.

But is this assumption true? According to the latest research, no! In fact, poor mental health leads to lower performance and productivity, increasing absenteeism and presenteeism (i.e., lower productivity while attending work).

The Link Between Mental Health and Performance

In early 2024, the then UK secretary of state for work and pensions asserted that attitudes to mental health had “gone too far.” We were at risk of medicalising “normal anxieties of life.” While there’s some truth to the idea that we may overprescribe for certain psychiatric conditions, there can be little doubt that employees feel their mental health is being squeezed.

Safe Work Australia reported that 9% of all serious workers’ compensation claims were related to a mental health condition – a 36.9% increase since 2017-18. The pandemic almost certainly played a role in altering workplace mental health. However, claims have been increasing for the better part of a decade and are much higher than back in 2008.

Does this decline in mental health translate into poor productivity and performance? According to the Australian Government Productivity Commission, poor mental health costs the Australian economy between $12.2 and $22.5 billion per year. (Some put the figure at $39 billion.)

Moreover, over 150,000 Australian employers are collectively losing more than 655,000 days of work annually due to workplace mental health injuries. On average, employees took 76 days off for each compensation claim linked to work-related harassment and bullying alone. That’s without counting the general burden of depression, anxiety, stress, and other mental health conditions.

It should come as little surprise. Depressed people feel minimal enthusiasm for life; even small chores can seem like an insurmountable challenge. Some people can be more productive when depressed to mask their emotional state. However, this cannot last for long and increases the risk of burnout. Anxiety, on the other hand, disrupts sleep and focus. In the short term, a bout of anxiety is good – it gets us acting. Yet, long-term anxiety and stress degrades the immune system, clogs people’s thoughts, and promotes procrastination. It’s a productivity killer.

On a personal level, I’ve seen firsthand how poor mental health can impact work performance. I began my career as a junior at a large law firm right as COVID-19 hit. After the initial panic subsided, the corporate sector buzzed with activity, leading to a surge in legal work. As my hours ballooned from 40 to 80 each week, I found myself trapped in a cycle of burnout, stress, and anxiety. This decline in my mental health created a negative feedback loop: the more stressed I became, the less I slept, and the more work piled up. My experience isn’t unique, it reflects the harsh reality faced by many Australians today.

Workplace Risks to Mental Health

What’s changed? Why have Australians gone from being reasonably content at work to being so stressed, depressed, and anxious that it’s affecting their performance? Obviously, there are some general societal factors in play. However, it’s the workplace itself that’s changed. Risk factors include:

Low Job Control

Feeling out of control is one of the primary contributors to anxiety. When we don’t know what’s going to happen next, our mental health spirals. A 2017 analysis revealed that when people are already in poor mental health, then low job control exacerbates the situation and makes them less productive.

More Complicated Jobs

What happens when someone leaves or retires? Sometimes, their job is replaced; other times, their responsibilities are shunted over to someone else. That increases productivity, right? Not really. As our jobs become increasingly complicated – e.g., organising teams virtually – people feel the strain. “Work intensification” describes the phenomenon of people trying increasingly hard at work, with pressing deadlines and overtime becoming common. It’s a recipe for disaster.

Increased Job Insecurity

Australians are increasingly flocking to the gig economy – partly through pressure on the job market. Doing so, however, lowers job security for both freelancers and people in work. ABC News highlighted the growing gulf between gig workers and white-collar professions, with the latter having many more rights than their freelance counterparts. Not knowing where your next paycheck is coming from is a strong incentive to work, but it can lead to burnout in the long term and a pretty miserable existence.

Blurred Work-Life Boundaries

With the rise of remote work, the lines between personal and professional life have become increasingly blurred. Many Australians find it difficult to “switch off” at the end of the day, leading to longer working hours and less downtime. This constant connectivity can increase stress, disrupt sleep, and negatively affect mental health as individuals struggle to maintain a balance between work responsibilities and personal life.

Financial Worries

We’re all working harder to earn less. With inflation increasing the cost of living, we’re forced to try to earn more money with side hustles and overtime. The result? Our mental health takes a pummelling.

Strategies to Mitigate Workplace Risks

To effectively tackle the connection between mental health and productivity, organisations need to implement practical strategies that prioritise employee well-being. A mentally healthy workplace not only uplifts morale but also enhances overall productivity. Four examples of actionable solutions that organisations can take include:

Mental Health Training Programs

Implement training sessions for employees and managers to recognise signs of mental health issues and foster supportive environments. Australian companies like Telstra have introduced mental health first aid training to equip staff with skills to support their colleagues.

Flexible Work Arrangements

Offer options for flexible hours, remote work, or hybrid models to help employees balance personal and professional responsibilities. Organisations like Ausmed have adopted flexible work policies that allow employees to tailor their schedules to suit their needs better.

Employee Assistance Programs (EAPs)

Provide access to confidential counselling and support services for employees facing personal or work-related challenges. Companies like Talked offer an affordable, pay-as-you-go solution to allow organisations to provide ongoing, affordable therapy support to their employees.

Regular Check-Ins and Support Groups

Encourage regular one-on-one check-ins between managers and employees to discuss workloads and wellbeing. Establish peer support groups for sharing experiences - this can be led by mental health champions with the organisation, who can lead informal group discussions.

Benefits of a Mentally Healthy Workplace

Despite the evidence clearly showing that poor mental health is associated with lost productivity – both absenteeism and presenteeism – few initiatives are enacted to change the status quo. The benefits of a mentally healthy workplace are obvious, however.

• A mentally healthy workplace increases productivity, as employees are more focused, motivated, and efficient.
• The financial research is resounding: boosting mental health ensures companies receive fewer compensation claims and sick days annually.
• Economic modelling indicates that every dollar spent on mental health generates a return on investment of $2.30.
• Lower stress levels in a mentally healthy workplace encourage creativity and innovation among employees.

To conclude with a personal anecdote, it wasn't until I recognised the impact of my stress and burnout on my work that I was able to make a meaningful change. By prioritising my mental health, I regained a level of productivity and job satisfaction that truly fulfilled me. Take action today as the consequences of inaction may be too high.

References

• New Report on Psychological Health in Australian Workplaces - Safe Work Australia
• Mental Health at Work - Beyond Blue
• 2023 Report to the Nation - Mental Health Australia
• Benefits of a Mentally Healthy Workplace - Mentally Healthy Workplaces

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