Behind the Bench: The Economic Toll of Poor Mental Health on Lab Teams—and What Leaders Can Do

Employees are the most important asset of any organization. Supporting employee mental health is crucial in maintaining a safe and healthy work environment. This article will examine the economic impact of poor mental health on organizations and individuals, and explore what organizations can do to enhance the mental well-being of their employees.

In the US, one in five adults experience mental illness, yet only about half of US adults with mental illness received treatment in 2024. The costs of poor mental health and its related consequences are projected to reach $6 trillion globally by 2030, up from $2.5 trillion in 2010. That’s more than the expense associated with cancer, diabetes, and respiratory ailments combined.

According to a 2022 study done by the SHRM Foundation, HR professionals recognize that offering mental health solutions for employers can boost productivity, increase return on investment and employee retention rates, attract new talent, and improve overall employee mental health.

Taking care of our staff’s mental health is not only good for them, but it’s also sound business strategy. 

Income distribution by mental health status

Studies show that poor mental health is directly proportional to lower income rates and that as employee mental health improves, so do salaries.

The percentage of people with serious mental illness (gray bars) making lower incomes is much higher than the percentage of healthy people (blue bars) making the same salary. Inversely, as salaries increase, the percentage of people with serious mental illness making these higher salaries decreases.

Eliminating productivity loss associated with mental illness

In a 2025 study conducted by researchers at Columbia, the University of Wisconsin, and Yale, the data shows that as mental health declines, employees work fewer hours and as mental health improves, employees work more hours. In addition, these researchers showed that as mental health declines, so do salaries. 

The average salary of a healthy individual in the study was $64,000 per year vs $46,000 per year for the individuals identified in the study as having serious mental health challenges. 

This data shows the benefit to both the individual employee (higher salary) and to the organization (more hours worked by employees) as a whole of improving mental health in the workplace.

What can organizations do to help improve the mental health of their staff?

The most important part of improving employee mental health is creating an emotionally safe work environment, that will lead to the reduction of stigma associated with mental health in the workplace. By reducing the stigma, employees will feel more open to seeking treatment. And treatment is critical for improvement in mental illness. The same study showed that employees who receive treatment are much more likely to improve their mental health status than those who do not. To encourage treatment, we must eliminate the stigma associated with mental illness.

Eliminating the stigma of mental health treatment    

The study also demonstrated that as the stigma surrounding treatment for mental health challenges decreases, people receive more treatment. As their mental health improves, the hours worked increase, as does the individual’s income and wealth. This data shows that it’s in the best interest of both the organization and the individual for staff to receive treatment for mental health challenges when needed. 

What can organizations do to reduce the stigma associated with mental health treatment?

• Invite local mental health professionals as guest speakers to give talks at your organization about mental illness in the work force.
• Speak regularly with your staff about your institute’s Employee Assistance Program (EAP), if one exists, and if one does not exist, advocate to leadership the importance of putting such a program into place.
• Create a mental health guide that provides information on the symptoms of mental illness and provides resources for mental health treatment options in your area.
• Create a well-being newsletter to share information regarding current research and resources regarding employee well-being, including mental health.
• Offer information on any training that is available either through your organization or locally in the community in topics such as suicide prevention and crisis intervention.

These activities will convey to your staff that employee well-being, including mental health, is not only an important topic but also one that is acceptable to speak about at work, thus combating the stigma against seeking help that many employees may feel.

A word about mentoring

In their study, the researchers also found that mentored employees exhibited better overall health and psychological well-being than those without mentors. Helping to organize a mentoring program for your staff is another important way to support the mental wellness of your staff. 

Helping to normalize mental health discussions in the work place for your team creates an atmosphere of trust that will allow your staff to feel more comfortable opening up about their struggles, seek out help, when needed, and be healthier and more productive employees.

If you’re looking to turn these ideas into action, my recent free on-demand webinar Mentorship at Every Level: Empowering Lab Teams from Top to Bottom offers practical guidance on building meaningful mentoring relationships across all career stages. It’s a valuable resource for anyone committed to supporting employee well-being and creating a more connected, resilient laboratory team.