Mental illness costs companies

If untreated, depression, post-traumatic stress disorder, eating disorders, bipolar disorder, drug and alcohol abuse, and other mental health issues are costly to employers. The cost comes from lost employee productivity, staff turnover, emergency room trips and even violent behavior.

Mental illness is the leading cause of why people aren’t working, said Chris Habgood, vice president for public policy for Mental Health America of Colorado.

Untreated depression alone costs Colorado businesses $866 million a year in absenteeism and $170 million in medical costs, Habgood said Thursday during a local workshop on mental health issues affecting the workplace.

Hosted by Mental Health America of the Pikes Peak Region, which provides resources and programs on mental health, the workshop drew 50 local company managers and supervisors.

“We can let it take its toll on society or support those we hire,” Habgood said. “Mental health treatment is an investment and opportunity to sustain a healthy workforce. Data show it costs more to do nothing.”

Adequate mental health coverage costs, on average, $6 per employee per year, said Habgood, whose organization lobbied the Colorado legislature for a change in law to ensure employers’ mental health benefits equal those of physical health benefits.

The law mandating expanded coverage for mental health takes effect Jan. 1 and affects employers with 50 or more employees.

Untreated psychological problems can result in violence at work, local employment law attorney Y.R. Hladkyj said.

To avoid such a situation as the shootings at Virginia Tech university in April, Hladkyj said employers have to create a workplace culture in which they do everything they can to prevent violence.

“You have to have a sense it’s coming, and the best form of that is communication between employees and supervisors,” he said.

Anonymous suggestion boxes and employer hotlines can be effective, he said, but the success or failure of such disclosure depends on “how management reacts to that communication. Act immediately and handle the information with care because a lot of allegations prove to be false.”

He recommends employers establish a relationship with local police before an incident happens, to get tips on safeguarding the business and to receive crime-prevention training.

Employers should also adopt an internal policy that defines conduct not allowed at work, including physical violence, verbal abuse, threats, stalking and harassment, Hladkyj said.

“Create an action plan, how to respond, when to contact authorities, when to evacuate and an analysis of how situations are handled,” he said.

Employers are obligated to provide a safe environment for employees, and Colorado law provides immunity to those who report a crime, mental health law attorney Denis Lane said.

“It’s very important to implement a safety plan for employees, such as locked inner doors on offices to help safeguard employees in case of violence,” he said.

What to do with an employee who displays signs of mental illness can be difficult for an employer, said Hladkyj.

Colorado has at-will employment laws, meaning employers can hire or fire employees for any reason, except discrimination.

“While firing somebody may be the most expedient, it may not be best route,” Hladkyj said.

Employers must decide, said David Smith, employment law attorney with Mountain States Employers Council, whether to go the extra mile to ensure employees with mental health problems get help or to fire those who cannot perform their job duties.

To accommodate employees experiencing mental health issues, employers can help by offering employee assistance programs, which provide employees with resources for complex or troubling personal issues; modifying job duties to allow employees to receive weekly counseling sessions or other treatment; and providing transfer opportunity to a less stressful job, Smith said.

MENTAL ILLNESS STATISTICS

- Mental illness is the leading cause of disability in the United States.

- Approximately 90 percent of adults with a substance abuse or chemical dependence problem and 72 percent of individuals with a mental illness are in the workforce.

- Psychological problems account for 61 percent of absences from work each year.

- Up to 85 percent of employee terminations and 90 percent of industrial accidents are a result of psychological issues.

- Nationwide, businesses each year accrue $116.6 billion in substance abuse costs, $205 billion untreated mental health costs and $43.7 billion for depression.

MENTAL HEALTH AMERICA OF COLORADO