Is investing in mental health training or wellbeing programs in the workplace good value for money? Not only is prioritising mental health in the workplace best practice, it can also yield significant returns on investment (ROI) for businesses. In this blog post, we will explore the potential benefits of implementing mental health initiatives (such as Mental Health First Aid Courses), as highlighted in Deloitte's insightful article, "Interested in a 5x ROI? Consider Mental Wellness Initiatives."
We've heard that it's important for businesses to invest in mental health in the workplace. Work-related stress affects both the health and the productivity of employees. Mental health conditions now account for 12% of all serious workers' compensation claims in Australia, and the median time away from work for these claims is almost five times longer than for other injuries and diseases (Safe Work Australia, 2025). For employers, the question isn't whether to act, but where to focus, how much to invest, and what return to expect.
According to PwC, the cost to businesses due to stressed-out employees being absent or not performing well is around $12 billion per year. The National Mental Health Commission found that employees dealing with job-related stress and mental illness are typically absent from work for almost 11 weeks each year in Australia. As employers, it's crucial to figure out where to focus our efforts, how much to invest, and what kind of return we can expect when we put funds and resources into improving workplace mental health.
Understanding the ROI of Mental Health Training
When a company invests in programs that support the mental health of its employees, it's like planting seeds for a thriving garden. Deloitte's research says that for every dollar spent on these programs, the company gets back around $5.30 on average. That's a fivefold return.
Now, why does this happen? Mental health initiatives are not just about making employees feel good temporarily; they can have a lasting impact, as long as they’re rolled out appropriately (not simply a tick box). Picture it this way: a workplace where people feel valued when workplace stress is managed effectively, the stigma associated with mental illness is reduced and there's a positive and supportive atmosphere. In such an environment, employees are likely to bring their best selves to work each day. This positive energy translates into improved productivity, better teamwork, and enhanced overall job satisfaction.
The ripple effect continues beyond individual wellbeing. Engaged and satisfied employees contribute to a healthier organisational culture, which, in turn, positively influences business outcomes. It's not just about the initial investment; it's about nurturing an ecosystem within the company that yields ongoing benefits.
So, in essence, the ROI of mental wellbeing isn't just a financial return; it's an investment in the overall health and prosperity of the organisation. The numbers tell a story of a workplace where people flourish, and as a result, so does the business.
Declining Mental Health - The Cost at Work
Mental health claims are costing Australian employers more each year. Safe Work Australia's Key Work Health and Safety Statistics 2025 reports that:
Mental health conditions account for 12% of all serious workers' compensation claims.
Serious mental health claims rose 14.7% in a single year (2022-23 to 2023-24).
Claims have grown 161% over the past decade, the largest increase of any injury category.
The median time lost from work for mental health claims is almost five times longer than for other injuries and diseases.
These claims also carry a much higher cost. The median compensation paid for mental health claims is more than four times the median across all serious claims. Behind each claim is a person whose work and life have been disrupted, and an organisation that has lost time, skills and continuity.
Company Benefits of Mental Health Initiatives at Work
Boosting Employee Productivity
Mental health and wellbeing initiatives help create a workplace where employees can manage stress, feel able to seek support, and maintain a healthy work-life balance. Mental health training is a great starting point, but embedding support means also addressing the workplace factors that can contribute to psychological injury, such as workload, role clarity, poor support and workplace conflict.
Stigma remains a major barrier. Many people hesitate to ask for help or to acknowledge that they need it, and workplaces play a role in changing that. A person can't leave part of themselves at home when they come to work. So how can workplaces best support someone experiencing a mental health condition? Our consultants can work through this with your team.
When employees feel well, they are better equipped to focus, make sound decisions and contribute meaningfully to their teams.
Driving Employee Engagement
A workforce that feels valued and supported is more likely to be engaged and committed. Mental health and wellbeing initiatives show that an organisation is serious about its people, which supports job satisfaction and loyalty. Engaged employees tend to be more collaborative, more willing to share ideas and more invested in organisational goals.
The key is that employees can tell the difference between genuine support and a token gesture. Visible leadership commitment, accessible support and a culture where people feel safe to speak up are what turn an initiative into engagement.
Reducing Absenteeism and Presenteeism
Mental health challenges can affect both attendance and performance. Absenteeism is when employees are away from work. Presenteeism is when they are at work but not fully productive because of poor mental or physical health. Many people keep working while unwell, which can reduce their effectiveness, increase errors and delay recovery.
Presenteeism is harder to see than absenteeism because it doesn't show up in leave records, but research suggests it can be the larger cost to organisations. A culture that supports mental wellbeing helps people seek help earlier, which can reduce unplanned absence and improve effectiveness at work.
Attracting and Retaining Top Talent
Organisations that prioritise mental health and wellbeing set themselves apart as employers of choice. Candidates increasingly look for workplaces that value their mental, social, emotional and physical health, because after all, you employ the whole person.
Wellbeing initiatives that go beyond a yoga class and a fruit bowl, such as training, professional development, flexible working arrangements and a positive workplace culture, can help attract and retain talent and reduce recruitment and training costs.
Nurturing a Positive Organisational Culture
Mental wellbeing initiatives help build a positive, inclusive culture. When an organisation addresses mental health proactively, employees are more likely to feel safe asking for help and sharing challenges. That safety supports collaboration, innovation and mutual support, and it makes the workplace one where people can do their best work.
When a company actively supports mental health, it's like saying, "We care about you, and we're here to help." This creates a culture where everyone feels included and valued. It's like being part of a team that has each other's backs.
Now, why does this matter? Because in a workplace where people feel safe and supported, they're more likely to work together like a dream team. They share ideas, help each other out, and explore innovation.
When a company focuses on mental wellbeing, it's not just about each person; it's about making the whole workplace feel like a big, happy family where everyone supports each other. And when that happens, work becomes not just a place to go but a place where everyone thrives and enjoys being together.
Psychosocial Hazards and Your Legal Obligations
Mental health at work is now also a compliance issue. Australian work health and safety laws require employers to identify and manage psychosocial hazards, the aspects of work design, management and environment that can cause psychological harm.
This is why training alone isn't enough. Mental Health First Aid builds the skills to respond when someone is struggling, but preventing psychological injury also means assessing and addressing hazards such as high job demands, low job control, poor support, and workplace conflict or bullying. Wellbeing Campus can help you do both.
Things to Consider Before Implementing Interventions
Before initiating any measures to enhance workplace mental health, beyondblue recommends considering six key factors:
Leadership commitment: Senior organisational leaders and business owners must demonstrate visible, long-term commitments to fostering and maintaining good mental health in their workplaces to instigate lasting positive change. We suggest conducting some leadership awareness training to enhance the leadership team’s understanding of mental illness at work.
Employee participation: Involving employees is crucial for improving mental health in the workplace. Seeking input from employees at every stage, from planning to implementation and evaluation, ensures inclusivity and effectiveness.
Policy development and implementation: Establishing clear and flexible policies forms the foundation for action. These policies should be well-articulated and adaptable to meet the specific needs of the organisation or business.
Adequate resources: Initiatives aimed at enhancing mental health in the workplace require sufficient resources to succeed. Ensuring access to the necessary resources, including financial support and staffing, is essential for implementation.
Sustainable approach: Achieving initial success is only part of the equation; sustaining progress over the long term requires ongoing dedication and effort.
Effective planning: Successful implementation hinges on careful planning. This involves defining clear goals and objectives, as well as identifying the necessary inputs such as financial resources, time, or additional staffing. A well-thought-out plan sets the stage for successful intervention.
Workplace Wellbeing Programs
In addition to enhancing mental health, workplace wellbeing programs promote physical health through activities like fitness classes, health coaching, and ergonomic assessments. Wellbeing Campus supports organisations in implementing these initiatives while embedding a culture of wellbeing. By addressing psychosocial risks alongside wellbeing efforts, companies can mitigate stress and anxiety, boosting productivity and engagement. These programs also foster higher morale and employee satisfaction, leading to a positive company culture and lower turnover rates. Though there may be initial costs, the long-term benefits, such as reduced absenteeism and healthcare expenses, offer significant ROI. Investing in workplace wellbeing programs improves both mental and physical health, ultimately enhancing productivity, engagement, and overall organisational success.
Recommended workplace wellbeing interventions:
Mental Health Training: Provide comprehensive training for staff and managers to recognise signs of mental distress, manage mental health-related issues, and support employees effectively. This could be Mental Health First Aid, Mental Health Literacy for Managers and Leaders or bespoke courses specifically for your sector.
Flexible Work Arrangements: Offer options such as flexible hours and telecommuting to accommodate employees' needs and promote work-life balance.
Employee Assistance Programs (EAPs): Provide confidential counselling services and resources to support employees experiencing mental health challenges.
Job responsibilities and Expectations: Ensure clear communication of job roles, responsibilities, and expectations to reduce stress and uncertainty.
Workplace Health Promotion: Offer wellness programs promoting physical activity, healthy eating, and stress reduction techniques to support overall mental well-being.
When evaluating the return on investment (ROI) of workplace wellbeing programs, it is important to consider the long-term benefits. While the cost of implementing these programs may seem high in the short term, the long-term benefits in terms of reduced absenteeism, improved productivity, and lower healthcare costs can lead to significant cost savings for organisations.
Workplace wellbeing programs are a valuable investment for organisations. By improving the physical and mental health of employees, these programs can help to reduce stress, improve productivity, and increase engagement and morale. If you are considering implementing a workplace wellbeing program, it is important to consider the potential long-term benefits and ROI of these programs.
Contact us today to discuss the unique needs for your organisation.