Overall, IBI, a California-based benefits research group, reports that employers severely underestimate the prevalence and lost productivity costs of depression. For example, disability payments are two and a half times the costs of medical care and pharmacy benefits combined, while lost productivity represents 60% of the full cost of the disability leave.
“Our results show that depression is a case in point for employers wanting to improve the health of their workforce while improving business results: a huge potential for lost productivity, yet not on employers’ radar screens from the paid-cost standpoint,” said Dr. Thomas Parry, president of IBI.
The research also shows that more than 80% of all productivity losses for depressed employees are associated with sick leave and presenteeism. For the study, IBI analyzed data on 400,928 workers from six companies.
“A short-sighted focus on paid benefits causes employers to underestimate the true impact of depression on the workforce and fail to make appropriate investments in improving workforce mental health” Parry explains. “Such an investment, reflecting the full costs of workforce depression, would benefit employers and their employees alike.”
Other key findings included:
- Approximately 10% of the more than 400,000 workers studied received medical treatment for depression during the three-year study period.
- Only 30% of workers reporting depression receive current professional medical care according to employee self reports. Nearly two-thirds of depression-related productivity losses are due to presenteeism.
- Employees in the depression group have 44% more lost time than employees who had no depression treatment during their disability leave which cost employers $3,408 more per case.
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