Happy worker is a productive one

One in five working Australians experience mental illness, a Productivity Commission ­inquiry into mental health found.

The Productivity Commission ­inquiry into mental health report conducted by the Mentally Healthy Workplace Alliance this year found that one in five working Australians experienced mental illness, which led to absent­eeism of up to 138 hours a person a year. Another survey, by Deloitte, found fewer than 20 per cent of us were happy at work.

This lack of happiness and ­decline in health has a significant impact on engagement, morale, productivity, performance and overall profit and organisational success. Workplaces of all sizes, in all industries, are affected by poor mental health and unhappiness, with evidence suggesting psychological distress is most acute for sole traders.

More than 60 per cent of small businesses in Australia close ­within their first three years ­because of challenges such as ­increasing overheads, payroll costs and lack of support or stress.

Stress is a growing concern for organisations and individuals globally. According to Safe Work Australia, pressure from work is the most common reason for stress leave. Left untreated, mental ill health, stress and happiness cost Australian businesses up to $10.9bn a year. According to Amanda Keogh of the icare Foundation, these problems could be prevented through early intervention and support.

Investment in mental health initiatives to support business can yield a significant return. A PricewaterhouseCoopers report shows that businesses can have a $14.50 return on ­investment for every $1 spent on mental health initiatives.

Yet Everymind, an institute dedicated to the prevention of mental illness, has found most workplace mental health programs are not designed or suitable for small businesses in particular.

With mental health issues becoming more prevalent in workplaces, this is an urgent issue. While ­employee health and happiness has previously been ignored as a driver for organis­ational performance, research demonstrates the need to change.

According to the Langley Group, happiness in the workplace raises business and education outcomes, increasing sales by 37 per cent, productivity by 31 per cent and accuracy on tasks by 19 per cent.

Happy employees are productive employees. A Gallup survey found businesses that rated highly when it came to staff wellbeing reported greater customer loyalty, productivity and profitability. Those in the top quartile on employee engagement averaged $80,000 to $120,000 higher sales revenue a month.

A study by the University of Warwick’s Andrew Oswald, Happiness and Productivity, reports that Google’s employee satisfaction rose 37 per cent because of ­investment in employee support. The average Google employee now generates more than $1.2m in revenue a year.

Happy and healthy employees translate into increased satisfaction, increased productivity, a ­reduction in absenteeism and fewer workplace leave claims. In addition, companies with a positive and engaged workforce attract and retain talent for longer.

Implementing proactive mea­sures to support wellbeing and create a safe culture is not only good for company staff but those dealing or interacting with the business overall: stakeholders, customers and clients. With up to a third of our lives spent in employment, it is good business sense that the overall health and happiness of everyone — leaders and employees alike — is imperative. Happiness is no longer a nice-to-have but a must-have.

Australia’s mental health sector has undergone considerable reform in the past 30 years but there is still a lot to be done to see effective and lasting improvement. This will have a significant impact not only on the workforce but also on society as a whole.

Anastasia Massouras is chief executive of Work Happy and founder and chief executive of Pure Insights.