The Mental Health Margin

Nov 26, 2024

 

We meticulously track operating margins, profit margins, and debt ratios. They're rather simple to calculate, and serve as crucially important insights. Yet, the highest-severity metric which often goes overlooked is the mental wellbeing of our workforce. Burnout, officially recognized as an occupational syndrome by the WHO since 2019, is referring to insurmountable work-related stress and anxiety placed on individuals. This phenomenon isn't just an "unfortunate pill to swallow" - the cost is staggering. Businesses with engaged employees generate 23% more profit, unhappiness and burnout are a quantifiable earnings killer. Globally, worker dissatisfaction alone costs the world an estimated $7.8 trillion annually - nearly 11% of potential GDP! In this blog, we'll explore how prioritizing employee mental wellness directly translates into a healthier bottom line and a more thriving workplace.

 

Numbering the Feeling

The impact of employee mental health on business outcomes, while not always immediately apparent, is significant. Research by Harrison et al. (2006) in How Important Are Job Attitudes?  displays compelling evidence of these effects. They revealed a robust correlation (r = 0.59) between positive job attitudes - characterized by feelings of engagement, satisfaction, and commitment - and overall individual effectiveness. This powerful connection underscores the far-reaching impact of a positive work environment on employee productivity. It's not simply about meeting individual targets; a positive work environment is directly linked to a worker’s overall contribution to the organization's success. The granular results highlight that this isn't limited to meeting in-role responsibilities; this substantial and quantifiable increase in effectiveness demonstrates the holistic effect on production in your company as a result of maintaining and actively encouraging employee well-being.

Breaking down these granularities, the study revealed a significant positive correlation (r = 0.30) between positive job attitudes and performance of in-role duties. This indicates that engaged employees are demonstrably more productive in their core responsibilities. However, further illustrating the positive effect of positive job attitudes on various KPI’s, the study also discovered a positive correlation (r = 0.28) between positive attitudes and contextual performance - behaviors that go above and beyond core job duties. Contextual activities consists of actions such as helping colleagues, suggesting improvements, and contributing to a positive work environment. These "extra-mile" efforts not only enhance team productivity, but often foster organic leadership within the company and lead to higher overall production levels than would be found in the alternative scenario. This proactive approach isn't just beneficial for employee well-being and productivity increases; it directly translates into substantial cost savings and hedges against morale infections. The study showed a fairly strong negative correlation (r = -0.34) between job attitude and employee turnover.

In essence, the data supports a clear picture: A positive work environment leads to tangible results. This means a happier, healthier workforce is directly linked to significantly lower turnover - building the company far faster and spending far less in severances/re-hirings. The financial burden of recruitment, training, and lost productivity due to turnover can be dramatically reduced by cultivating and actively working to maintain an environment supportive of the staff. This includes measures as simple as active encouragement of the company culture and a focus on fostering trust and well-being across various levels of the company. To summarize: happy, well-treated employee is not only likely to be far more productive, but also to help with others' workloads as well - fostering leadership organically. Unhappy people first slack off, then leave - fostering a culture of undesirability, instability, and anxiety.

 

The Cult In Culture

Ever since the advent of the sitcom, we as a culture have been fed the notion that work sucks and people hate their jobs. "TGIF!" "Ugh... Mondays." "Oh no, I have to go to work tomorrow." The everyday American's perspective towards their work is decidedly a bleak one - but it begs: why?  Work is like death, taxes, and Cher - it as a constant has always been here, will be here long after we're gone, and is a keystone of functioning society. Your dreams may never come true, you may never get that house, maybe you won't start a family in your life - but rest assured as long as you're sticking around - you will be working. When we decided to frame this fact of life as an inescapable existential horror, we decided to aim our targets on enduring misery. In the U.S.A., working relationships and ecosystems have transpired to profound dysfunction - now characterizing work as a relentless, often self-destructive pursuit of productivity, that often prioritizes profit and results at the expense of well-being and even happiness.

This perception in the public square however did not "happen upon us," suddenly, nor did it materialize by chance. Rather, it's a gradual but deeply-ingrained cultural conditioning: a subtle, slow drip of influence shaping not only how we view work - but also how we value ourselves. The long-perpetuated Protestant work ethic of the western world has proven an unideal work approach. This perspective views hard work and diligence as moral virtues, meant to intrinsically link self worth to scale and quality of productivity. In saying "Protestant work ethic," I simply reference the highly-colloquialized term referring to this precise "self worth = self work" philosophy, but the mindset in itself is an agnostic one. The pushbacks of this mindset are overwhelmingly evident across America today. At first, the idea of programming one's employees to experience emotional distress when unproductive sounds like a boss' fantasy, but when exploited, results in burnout and turnover.

 

Work, Of Course, But Please Play

The inherent logic of capitalism promotes relentless growth and boundless profit. Consequently, companies are naturally incentivized to work workers as hard as sustainably possible, but all too often flirt with the line of what can reasonably be considered sustainable. Many major corporations are known to forego ethical standards, and even human limitations, in choking their desired results out of the given paradigm. This pressure is amplified by the rise of the gig economy, which fosters a climate of intense competition, pervasive uncertainty, and even self-exploitation. The inherent instability of gig work creates insecurity, leading many to work longer and harder simply to maintain a precarious livelihood, creating a cycle that's difficult to escape. Those who thrive in the gig game can quickly take flight, but those not cut out for it can quickly become trapped in a vicious cycle.

Modern technology, with its constant connectivity, further exacerbates the problem, blurring the lines between work and personal life. The expectation of constant availability fosters a culture of burnout, where personal well-being is routinely sacrificed to meet the immediate demands of the job, resulting in significant mental, emotional, and physical toll on the worker. This relentless pressure is further reinforced by media portrayals of work, which frequently depict workplaces as stressful and unfulfilling environments, perpetuating negative narratives about work-life balance and contributing to feelings of low morale and exhaustion. The combined effect of these powerful cultural forces has led many to unconsciously link their self-worth to professional achievements, effectively creating a modern form of servitude to the endless pursuit of productivity. Job titles, accomplishments, and income levels become the primary measures of personal value, fostering a relentless drive that is not only detrimental but can have severe consequences, frequently leading to physical and mental health issues. This insidious cultural conditioning demands a conscious and collective reevaluation of our relationship with work. It requires a fundamental shift in our values, prioritizing overall well-being and a balanced life over the relentless pursuit of productivity. It is time to break free from these self-imposed limitations, step off the treadmill of endless work, and reclaim our lives and health.

 

Cobi_Tadros

Cobi Tadros is a Business Analyst & Azure Certified Administrator with The Training Boss. Cobi possesses his Masters in Business Administration from the University of Central Florida, and his Bachelors in Music from the New England Conservatory of Music.  Cobi is certified on Microsoft Power BI and Microsoft SQL Server, with ongoing training on Python and cloud database tools. Cobi is also a passionate, professionally-trained opera singer, and occasionally engages in musical events with the local Orlando community.  His passion for writing and the humanities brings an artistic flair with him to all his work!

 

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