Depression Costs Businesses Billions

Major depression diminishes work performance in terms of both productivity and task focus, resulting in workers missing the equivalent of 2.3 days a month. Lost productivity due only to employee absenteeism may underestimate the true effect of depression on people’s work lives.

A study in the October American Journal of Psychiatry suggests that diminished productivity while workers are on the job-what has been called “presenteeism”-may significantly add other costs attributable to untreated or inadequately treated depression.

Moreover, compared with other conditions that significantly impact on-the-job productivity, depression appears to be among the most debilitating, according to the study.

Last year the average depressed worker took 40 days off, which is a higher rate than those suffering with heart disease, high blood pressure, diabetes, back pain, and other mental illnesses. Further, some employees are absent even if they are working, thus opening the possibility to workplace accidents and ill feelings from co-workers.

What is Depression?

Depression may be described as feeling sad, blue, unhappy, miserable, or down in the dumps. Most of us feel this way at one time or another for short periods. But true clinical depression is a mood disorder in which feelings of sadness, loss, anger, or frustration interfere with everyday life for an extended time.

Cost of Depression

The 40 days off costs employers approximately $52 billion annually. If the individual is being treated through employee assistance programs it might cost the employer $3000, but left untreated depression will cost the employer twice that.

Other hidden costs of not treating major depression include absenteeism, decreased productivity, lost jobs, increased job-related injuries, failure to advance in career and school, substance abuse, poorer physical health, dysfunctional families, and death due to intentional or sub-intentional attempts to harm themselves

Despite broad access to mental health benefits, depressed employees aren’t getting the help they need, according to new research from the University of Michigan Depression Center. That’s bad news for employers, who lose an estimated $52 billion each year from depression-related absenteeism and reduced productivity.

But there’s good news on the horizon: Behavioral health management companies are stepping in with targeted depression screening programs and sophisticated outcomes measurement techniques. Self-reported patient data can be compared against thousands of patient outcomes, identifying people most at-risk and ensuring appropriate and timely interventions. The goal is to rout depression early, lowering health and productivity costs for employers and raising the quality of life for workers.

If mental health organizations have their way an employer would be unable to fire an individual suffering with depression. Depression is considered a chemical imbalance so the person could not be held responsible for that. But that raises the question should an employee put his employees at risk for one individual? High stress jobs would be impacted the hardest. Jobs such as air traffic controllers, psychiatrist, corporate lawyers, and teachers have the most stress but the least outlet. Usually they are the end of the cycle. Further, people in these positions have an element of shame and pride that would prevent them from seeking assistance.

Depression that is treated badly, or not treated at all, takes revenge on the system by aggravating other problems, such as absenteeism, slow production, and physical ills that may cost a company even more. So is the answer to let anyone with depression go? For some positions of high stress a sabbatical might be in order. For others the answer is in understanding the disease. This does not mean that an employer should allow others to be put at risk. Individuals that are beyond depression and into suicidal ideation need treatment and intervention immediately.

What an Employer Can Do?

Employers might consider allowing support groups during lunch or having peer counselors that people can go to and that can spot the signs of depression which are:
âÂ?¢ Persistent sad, anxious, or “empty” mood
� Feelings of hopelessness, pessimism
� Feelings of guilt, worthlessness, helplessness
� Loss of interest or pleasure in hobbies and activities that were once enjoyed
âÂ?¢ Decreased energy, fatigue, being “slowed down”
� Difficulty concentrating, remembering, making decisions
� Insomnia, early-morning awakening, or oversleeping
� Appetite and/or weight loss or overeating and weight gain
� Thoughts of death or suicide; suicide attempts
� Restlessness, irritability
� Persistent physical symptoms that do not respond to treatment, such as headaches, digestive disorders, and chronic pain

These signs must be active for two weeks before they will be diagnosed as such. Employers adopting the peer counselor approach must train that individual in the signs and what to do.

For liability sake the business might adopt an absolute “get outside professional help” policy for those threatening suicide. Whatever course an employer chooses will upset someone, but the employer must consider the long term results of his action.

Evidence shows such efforts are badly needed, as employees report a reluctance to seek care and difficulty obtaining thorough treatment for depression.

A recent study by the University of Michigan Depression Center found that while 89% of depressed employees report having mental health coverage, 75% delay getting care and 36% receive only partial treatment. Moreover, although 65% have access to an employee assistance program, only 14% have ever used it.

Benefit managers, according to the Depression Center, aren’t doing enough to address the problem. While 83% say their company has taken steps to ensure a supportive social environment for depressed employees, just 37% conduct depression education programs. And even though 78% of firms believe productivity losses from depression are more costly than treatment, only 11% facilitate behavioral health screenings.

Conclusion

In this stressful society employers must note that depression can and does take place. They must start taking an active role in the treatment of their employees by requiring counseling for those who it is clear are having a hard time with depression. By taking a more active role the employer insures a safer environment for employees and increased productivity.

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