Investing in Mental Health

Worker stress and mental health issues, resulting in absenteeism, presenteeism, and productivity declines, are costing Portuguese companies up to 5.3 billion euros per year. The report “Cost of Stress and Psychological Health Problems at Work “, published by the Order of Portuguese Psychologists, warns that prevention and promotion of mental health in organizations can reduce productivity losses by at least 30% and save about 1.6 billion euros per year.
After the coronavirus pandemic, the issue of stress and mental health gained visibility with the intensification of these problems, significantly impacting workers’ productive capacity and companies’ economic results. The document reveals that companies’ costs or losses due to mental health issues are increasing year by year and offers a series of suggestions for companies to improve their approach to mental health.
In terms of losses, the Order of Portuguese Psychologists estimates that in 2022 they amounted to 5.3 billion, a significant increase compared to the estimated losses in 2020, which reached 3.2 billion euros. Absenteeism cost 1.8 billion euros, while presenteeism (i.e., when workers go to work but perform below their capabilities) had a negative impact of 3.5 billion euros.
This calculation is based on the estimate that in Portugal, “workers miss up to 8 days per year due to stress and Psychological Health problems, and presenteeism can reach up to 15.8 days”.
Highlighting that productivity loss can cost Portuguese companies up to 1.4% of their turnover. The report argues that “prevention and promotion of Psychological Health and well-being in Portuguese companies can reduce productivity losses by at least 30% and, therefore, result in savings of about 1.6 billion euros per year”.
The document provides a set of recommendations to organizations and decision-makers to improve the perception of the importance of mental health for companies and workers.

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