By Louise Dennison O’Shaughnessy – Director of Mental Health & Wellness, EHS International
In recent months, we have shared a series of articles exploring the different dimensions of workplace mental health. We looked at the two sides of psychological safety and why leaders need to distinguish between compliance and culture. We offered practical tips for spotting burnout early and we examined the legal case for mental health training in Ireland and the EU. Most recently, we discussed how leaders can step up as champions of mental wellbeing.
There is one more part of the conversation that often tips the balance for directors and decision-makers. That is the business case for mental health.
Every euro invested in mental health delivers a measurable return. European evidence shows that employers typically recoup between €2.50 and €4.80 for every euro invested in employee health and wellbeing programmes. Yet too many Irish employers still see wellbeing as a cost rather than a strategy. That mindset is costing businesses far more than they realise.
For too long, mental health has been seen as a cost or a “nice-to-have” perk. The reality is very different. Organisations that invest in wellbeing see measurable returns. They reduce absenteeism, protect against claims, retain talent, and improve productivity. In an environment where recruitment is challenging and margins are tight, mental health is not just an HR issue. It is a strategic investment.
The hidden costs of poor mental health
The World Health Organization estimates that depression and anxiety cost the global economy over a trillion dollars each year in lost productivity. In Ireland, research shows that absenteeism linked to stress and mental ill-health can cost employers thousands of euro per employee per year.
What is less visible, but often more damaging, is presenteeism. This is when employees show up for work but are unable to perform at their best due to stress, anxiety, or burnout. The cost of presenteeism is estimated to be higher than absenteeism in many sectors. Add in the impact of higher turnover, recruitment costs, and reputational risk, and the true price of neglecting mental health becomes clear.
I often think of an employer we supported who was experiencing significant absenteeism across one department. At first glance it looked like a performance issue. When we carried out a psychosocial risk assessment, we uncovered workload imbalances, poor job design, and a culture of constant overtime. Within six months of implementing targeted changes, absence rates dropped by a third. The savings far outweighed the cost of intervention.
The productivity gain of healthy workplaces
When employees feel psychologically safe, supported, and valued, their performance improves. Teams collaborate more effectively. Leaders see higher levels of innovation and trust. In high-risk industries such as construction, utilities, and manufacturing, mentally healthy teams are also safer teams. Mistakes are reduced because people are more focused, more engaged, and more willing to speak up if they see a problem.
This is where our earlier article on psychological safety becomes relevant. You cannot ask people to innovate or challenge if they are burnt out or fearful of retaliation. True psychological safety is both a legal duty and a cultural driver. It is also a performance multiplier.
From compliance to competitive advantage
In our article on the legal case for mental health training, we explained why employers cannot afford to ignore psychosocial risk. Compliance with the Safety, Health and Welfare at Work Act 2005, along with relevant EU directives, is coming under sharper focus. In a significant shift, Health and Safety Authority (HSA) inspectors are now calling on companies to provide psychosocial risk assessments during onsite inspections. This move signals a growing recognition that workplace health is not just about physical safety, but also about the psychological and social factors that impact employee wellbeing. But compliance is only the baseline. The real advantage comes when organisations go further. Employers who build wellbeing into their strategy attract and retain talent. They are more resilient in times of change. They build trust with clients and stakeholders.
When a financial services firm faced an upcoming HSA inspection, they were concerned about gaps in their psychosocial risk management. Policies were in place, but risk controls were vulnerable, awareness was low, and managers lacked confidence in applying them.
We partnered with the company to close those gaps. Together, we focused on three success factors: visible leadership commitment, employee involvement, and targeted training and assessments.
The outcome was twofold: the firm not only achieved compliance but also saw improved morale, stronger trust in leadership, and reduced staff turnover. By working with us, what started as a compliance challenge became a springboard for cultural and performance gains.
Leadership and return on investment
In our most recent piece on mentally healthy leadership, we highlighted how managers are often the first line of defence. When leaders can spot signs of distress early, they prevent problems from escalating into costly absences or claims.
Training leaders is not just about empathy. It is about equipping them with tools that save organisations money. A manager who knows how to hold a supportive conversation, make reasonable adjustments, and escalate when necessary is protecting both the employee and the business. That is a return on investment that cannot be ignored.
Simple steps with big impact
So what can employers do to see a positive return on their investment?
- Carry out psychosocial risk assessments. These uncover the hidden drivers of stress and provide a roadmap for improvement.
- Invest in Mental Health First Aid training and Mental health First Aid for Managers, Supervisors and HR Specialists, giving staff the skills to support one another reduces crises and builds resilience.
- Equip leaders with coaching and communication skills. Confidence at management level translates into healthier, more engaged teams.
- Introduce small but effective cultural practices. From wellbeing check-ins to no-meeting days, small shifts often deliver big gains.
At EHS International, we have seen these steps transform organisations. What starts as a compliance exercise often evolves into a stronger, more sustainable culture.
I worked with a pharmaceutical company preparing for an HSA inspection. Leadership was concerned about psychosocial risks: many employees were on sick leave with burnout, staff attrition was high, and managers lacked confidence in supporting mental health.
We began with a psychosocial risk assessment to identify stress drivers and create a roadmap for improvement. Mental Health First Aid training for staff and managers, leadership coaching, small cultural practices like wellbeing check-ins and no-meeting days, and the creation of a wellness committee all helped build resilience and engagement.
By the inspection, the company was not just compliant. Staff felt supported, burnout and sick leave reduced, attrition dropped, and the culture became stronger and more resilient. What began as a compliance exercise became a lasting performance boost.
Mental health is no longer optional. It is a legal requirement, a cultural expectation, and a business-critical investment. The organisations that thrive will be those that see mental health not as a cost but as an opportunity to strengthen performance and protect their biggest asset, their employees.
At EHS International, our focus is on helping employers turn compliance into competitive advantage. When mental health is prioritised, wellbeing improves, teams thrive, and businesses perform at their best.
If you are ready to explore how your organisation can turn compliance into competitive advantage, our team at EHS International is here to support you
Thank you for reading about: Why Investing in Employee Wellbeing Pays Off
About the Author: Louise Dennison O’Shaughnessy
Louise Dennison O’Shaughnessy is the Director of Mental Health & Wellness at EHS International, specialising in workplace mental health training and resilience-building. With over a decade of experience, Louise is a certified Mental Health Instructor, First Aid Trainer, and registered EMT. She is passionate about fostering supportive work environments, reducing absenteeism, and improving employee well-being through innovative training programmes.
Book Mental Health First Aid Training Here
Resources for those in need of Mental Health Support.
At EHS International, we believe that having access to the right support at the right time can make all the difference. That’s why we’ve carefully curated a comprehensive list of trusted organisations dedicated to crisis intervention, counselling, and ongoing mental health services.
Moreover, these resources are designed to empower individuals, families, and workplaces with the tools and guidance they need to navigate mental health challenges effectively. Whether you’re seeking immediate assistance, exploring long-term support, or looking for ways to help someone in need, these organisations are ready to step in.
EHS International, are committed to fostering a community of care and resilience, and we aim to ensure that no one has to face mental health challenges alone.
Visit the EHS International Mental Health Hub
Crisis and Mental Health Support Services If you or someone you care about is in crisis and requires immediate support, please contact the Samaritans or one of the services listed below. The Samaritans provide confidential, non-judgmental assistance 24/7. Call 116 123 in the Republic of Ireland or 08457 90 90 90 in Northern Ireland, email them, or visit their website at www.samaritans.ie to find the nearest branch.
