The Business Case for Workplace Mental Health
Investing in workplace mental health isn’t just the right thing to do - it’s a smart business decision.
The Payoff:
Organisations that implement effective mental health and organisational development strategies consistently see a strong return on investment (ROI) - including:
Reduced absenteeism and turnover
Improved productivity and engagement
Stronger team performance and morale
Industries across Northern Australia are especially well-positioned to benefit from these outcomes.
The Australian Evidence Base
Australian research by PwC in partnership with beyondblue reveals that organisations can expect an average return of $2.30 for every dollar invested in effective workplace mental health strategies. However, returns vary significantly by industry.
Industry-Specific ROI (per $1 invested):
Mining Industry: $5.70 return
Manufacturing: $3.50 return
Construction: $2.50 return
Information, Media & Telecommunications: $4.20 return
Transport & Logistics: $4.20 return
Mining Industry:
Exceptional Returns
For mining organisations - the dominant industry across northern Australia - the business case is particularly compelling. Small mining organisations can expect returns of at least $15 for every dollar invested in mental health initiatives.
Why mining sees outsized returns:
Higher baseline prevalence of mental health conditions
Greater costs from absenteeism and turnover in remote operations
Significant productivity gains when support is implemented
Reduced workers’ compensation claims
What Drives ROI?
Returns are generated through three primary mechanisms:
Reduced Absenteeism: Fewer mental health-related sick days
Improved Productivity: higher engagement and performance
Lower Compensation Claims: fewer psychological injury claims
High-Impact Interventions
At 90percent Consulting, our high-impact interventions deliver proven financial returns, stronger teams and lasting cultural change. From leadership coaching that drives performance, to mental health training that saves lives, to enhanced employee support programs that reduce costs, each solution is designed to protect your people and maximise your bottom line.
Executive and Leadership Coaching
Average ROI: 7:1 across all industries
Northern Australian mining context:
Up to 15:1 returnKey benefits: Improved decision-making, reduced management turnover, enhanced team performance
Mental Health First Aid Training
Average ROI: 7:1 across all industries
Northern Australian mining context:
Up to 15:1 returnKey benefits: Particularly effective in remote operations where professional mental health support is limited
Enhanced Employee Assistance Programs
World Health Organisation estimates $4 return for every $1 invested in mental health treatment and support (WHO, 2023)
ROI range: 3.5:1 to 11:1 depending on implementation quality
Real Results: Northern Australian Case Studies
-
Remote Mining Operation
Challenge:
28% annual staff turnoverInvestment: $180,000 annually
Results: Turnover reduced to 15%, saving $2.4 million in recruitment costsReturn on Investment: 13.3:1
-
Oil & Gas Platform
Challenge:
High stress-related incidents and compensation claimsInvestment: $95,000 over two years
Results: 40% reduction in stress-related claims, 25% improvement in safety performance
Return on Investment: 4.8:1
-
Construction Consortium
Challenge:
High conflict rates, poor team cohesion
Investment: $240,000 programme costResults: 35% reduction in project delays, 22% improvement in productivity
Return on Investment: 6.2:1
*Case studies represent composite examples based on industry data and client outcomes. Specific company details have been anonymised for confidentiality.
Calculate Your ROI Potential
Typical Costs of Poor Mental Health (Annual):
Staff turnover: $50,000-$150,000 per departure in skilled roles
Absenteeism: $380 per day per employee (mining industry average)
Workers' compensation: $22,400 average claim (mining industry)
Investment Categories:
Basic Programme: $300-500 per employee annually
Comprehensive Programme: $800-1,200 per employee annually
Premium Programme: $1,500-2,500 per employee annually
Example ROI Calculation
Medium-sized mining operation (200 employees):
Annual investment in comprehensive programme: $200,000
Expected return using mining multiplier (5.7): $1,140,000
Net annual benefit: $940,000 | ROI: 570%
ROI Timeline
Phase 1 (0-6 months): Foundation building - neutral ROI
Phase 2 (6-18 months): Early returns - 1.2:1 to 2:1 ROI
Phase 3 (18-36 months): Full realisation - 3:1 to 8:1
ROI Phase 4 (3+ years): Sustained excellence - 5:1 to 15:1
The Cost of Inaction
Annual cost of untreated mental health conditions:
Approximately $11 billion across Australian workplaces (Mental Health Australia, 2014).
For northern Australian operations, this includes:
Recruitment difficulties in competitive labour markets
Increased regulatory scrutiny on psychosocial hazards
Reputational damage affecting social licence to operate
Higher insurance premiums due to claims history
The Investment Imperative
The evidence is clear: investing in workplace mental health delivers substantial returns, particularly for northern Australian industries. With mining operations achieving returns of up to 15:1, the question isn't whether to invest, but how quickly to implement effective programmes.
Ready to calculate your potential ROI?
Contact us to discuss your organisation's specific requirements.
