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ROI OF PSYCHOTHERAPY IN THE WORKPLACE When estimating the benefits of onsite psychotherapy services in the workplace, even a conservative approach indicates a potential 4 to 8 times ROI. Each company’s situation is unique, but the major benefits can be included in a model for quantifying the return on an employee support service like onsite psychotherapy. Absenteeism According to a Circadian report, unscheduled absenteeism costs roughly $3,600 per year for each hourly worker and $2,650 each year for salaried employees. 1 In the study, the two drivers for unscheduled absenteeism relevant to this discussion were stress (12%) and personal illness (20%). If we assume that roughly half of the personal illness is driven by stress, then 22% of the costs of unscheduled absenteeism is stress-related. These figures indicate that stressrelated absenteeism costs companies $580 to $790 per employee per year. This estimate agrees with data in a 2018 report on workplace stress by The Stress Institute that states that 20% of all last-minute no-shows are due to job stress.2 Presenteeism Presenteeism (employees not working at full capacity) drives an even higher cost, but estimates vary widely. In its 2015 Global Insights Report, the Global Corporate Challenge estimated that presenteeism costs 10 times as much as absenteeism. 3 Alternatively, a PricewaterhouseCoopers report quantifies it as only 1.3 times the cost of absenteeism.4 For the purposes of this discussion, we are conservatively estimating between 1.3 and 5 times the cost of absenteeism. That means that presenteeism costs companies $1,025 to $2,900 per employee per year. Healthcare Costs In a 2015 study of how workplace stressors drive healthcare costs, Harvard and Stanford researchers estimate that 5% to 8% of total annual US healthcare costs are associated with workplace stressors. 4 Using the Centers for Medicare and Medicaid Services (CMMS) official estimate of $3.3 trillion for 2016, this translates to a staggering $165B to $265B in healthcare costs. With approximately $150M full and part time workers in the US, that represents between $1,100 and $1,700 healthcare costs per average employee being driven by stressors at the workplace. Turnover The cost to an organization to backfill, recruit and onboard a new team member has been estimated at between 20% to 50% of the departed employee’s salary. Conservatively, we can


estimate this as $20,000 to $30,000 depending on the compensation level and difficulty and costs associated with find a replacement. In 2017, the average “quit rate” in US companies was 26%, but it is difficult to attribute the specific reasons why a person leaves an organization. We could use metrics in the 2013 Gallup study: efforts to improve employee engagement (an organizational phenomenon that can be correlated to strong individual emotional resilience and stress management) reduced turnover by 25% to 65%.6 As an example, a 250-person company that cut its turnover rate in half from the US average of 26% to 13% could save $650,000 to $975,000. Summary Using the estimates above, a 250-employee company could reap between $1.3M and $2.3M of benefits by reducing workplace stress and/or equipping employees to more effectively deal with it: • Absenteeism $145K to $195K • Presenteeism $255K to $725K • Healthcare Costs $275K to $425K • Turnover $650K to $975K A $250K wellbeing program focused on workplace stress could result in a 4 to 8 times ROI. Beyond the benefits cited above, there are others that are more difficult to quantify: enhanced recruiting, increased creativity, improved social intelligence. Consider offering a cutting-edge solution not yet offered by many companies - onsite psychotherapy services provided during the workday. The introduction and communication of a program like this will raise the awareness and reduce the stigma of mental and behavior health. And this unique, innovative level of support to your employees demonstrates your commitment to the wellbeing of the individuals who contribute so much value to your company. In our next whitepaper, we will describe how an onsite psychotherapy service would be structured and implemented. Circadian, Shift Work and Absenteeism: The Bottom Line Killer 2014 The American Institute of Stress, Report on Stress in the Workplace 2018 3 Global Corporate Challenge, Global Insights Report 2015 4 PricewaterhouseCoopers, Creating a mentally healthy workplace: Return on investment analysis 5 Goh Joel, Pfeffer Jeffrey, Zenios Stefanos, The relationship between workplace stressors and mortality and health costs in the United States. Management Science 2015; 62: 608–628 6 Gallup, The State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders 2013 1 2

Roi of Psychotherapy in the Workplace  
Roi of Psychotherapy in the Workplace  
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