The real cost of mental health: Why SA workplaces can't afford to look away

BY ANY measure, the cost of unaddressed mental health in South Africa is staggering. Depending on how it's calculated, mental health challenges are costing the South African economy between R161 billion lost in reduced productivity, absenteeism, presenteeism, and staff turnover. These numbers, drawn from credible studies by institutions such as Investec should give business leaders pause.

- PHILIPPA LARKIN

THE cost of unaddressed mental health in South Africa is staggering.

(AI LAB)

Because this is not just an economic issue—it's a workplace crisis in plain sight. And something that is worth highlighting as October marks Mental Health Awareness Month.

Presenteeism, where employees show up physically but are too mentally unwell to function properly, accounts for the lion's share of the loss. Unlike absenteeism, which is easier to track and quantify, presenteeism is insidious. An employee may be logged on or at their desk, yet disengaged, overwhelmed, unable to concentrate or make sound decisions. According to the same research, this alone costs businesses nearly R96 500 per affected employee per year.

Absenteeism also takes a toll, with mental health-related absences costing the South African economy between R12 billion and R16 billion per year, according to Occupational Care South Africa. It equates to thousands of lost hours and millions in wages spent on workers too unwell to function.

These statistics are a hard economic truth: poor mental health isn't just a personal burden-it's a business liability.