October 10 marks World Mental Health Day, a global effort to raise awareness and mobilise support for those facing mental health challenges. This year’s theme is “Prioritize Mental Health in the Workplace.'' It is an opportunity to bring everyone together with a clear message and practical solutions to help.
As organisations increasingly recognize the value of holistic employee wellbeing, World Mental Health Day also serves as an ideal moment to reflect on how these initiatives align with Environmental, Social, and Governance (ESG) principles and can contribute to long-term business success.
Investing in Wellbeing: A Core Element of the ESG Agenda
For businesses committed to ESG, addressing employee mental health is integral to the "Social" part of the framework. Fostering an environment that supports mental wellbeing not only contributes to a happier, healthier workforce but also has broader business and societal benefits.
According to the UN Sustainable Development Goals (UNSDGs), promoting good health and wellbeing (Goal 3) and ensuring decent work and economic growth (Goal 8) are pivotal to sustainable development. Companies can make a significant contribution toward these goals by creating supportive workplace cultures.
For instance, investing in resources—such as employee assistance programmes (EAPs), wellness days, or mental health training—ensures that businesses are not only improving employee wellbeing but are also enhancing overall productivity. According to a report by the World Health Organisation (WHO), for every $1 invested in treatment for common mental health disorders, businesses see a $4 return in improved health and productivity.
By integrating mental health support into an organisation’s ESG strategy, companies show a commitment to the wellbeing of their people, which is essential to long-term sustainability.
However, one could argue that investing in prevention would be a better approach. This could involve examining workplace culture and practices. For example, do your values reflect the reality of the workplace. If work life balance is a key commitment, then how practically is this being role modelled and achieved by all.
Attracting and Retaining Talent
Employee wellbeing is not just about meeting ESG standards—it is also a powerful tool for talent acquisition and retention. In an era where the workforce is increasingly valuing mental health, companies that invest in these initiatives are more likely to attract top talent.
A Deloitte study found that millennials and Gen Z, who will soon make up most of the workforce, place a high value on mental health resources in the workplace. Job seekers are drawn to organisations that not only offer competitive salaries but also demonstrate a genuine commitment to employee wellbeing. Companies that make mental health support a core aspect of their employee value proposition (EVP) can stand out in a crowded marketplace.
When businesses invest in supporting employees, it helps foster a sense of loyalty and can reduce turnover. Employees who feel supported are less likely to leave, thus reducing the costs associated with hiring and training new staff. This retention of experienced and motivated employees translates into a stronger organisational culture, enhanced innovation, and better business outcomes.
The Ripple Effect: A Broader Societal Impact
Prioritising employee wellbeing has a positive impact beyond the workplace. Organisations that champion mental health help reduce the stigma surrounding mental health issues, encouraging a broader societal shift towards more open and supportive discussions about mental health.
By integrating mental health into their ESG strategy, businesses can support the UNSDGs, especially those related to health, work conditions, and equality. This approach proves to stakeholders, including investors and customers, that the company values not just profit but people and the planet too.
Prioritising employee wellbeing is more than just a moral obligation—it’s a smart business decision that supports the UNSDGs, enhances company culture, and attracts top talent. Let’s use this day to commit to creating healthier, more supportive workplaces where everyone can thrive.
Contact us to learn more about how you can embed employee wellbeing into your business and further strengthen your commitment to being a sustainable organisation.