Depression in the workplace: An economic cost analysis of depression-related productivity loss attributable to job strain and bullying

Abstract

Depression represents an increasing global health epidemic with profound effects in the workplace. Building a business case via the quantification of potentially avertable costs is essential to convince organizations to address depression at work. Our study objectives were to: (1) demonstrate a process path whereby job strain and bullying are related to productivity loss via their effects on depression; (2) estimate the costs to employers of sickness absence and presenteeism that are associated with depression; (3) investigate the relationship between depression severity and costs; and (4) estimate the contribution of job strain and bullying to depression-related productivity loss. A population-based telephone survey was conducted across two Australian states (N = 2074), with a one-year follow-up (cohort design). Results confirmed job strain and bullying affected productivity via depressive symptoms. Total national annual employer costs for lost productivity due to depression were estimated at $AUD8 billion per annum, most of which was due to mild depression. We calculated a population-attributable risk (PAR) estimate of 8.7% for depression attributable to bullying and job strain, equating to $AUD693 million in preventable lost productivity costs per annum. Findings suggest that even sub-clinical levels of depression represent a significant productivity and economic burden not previously recognized.

Keywords:

• depression
• bullying
• job strain
• presenteeism
• sickness absenteeism
• cost analysis
• productivity
• economy

Acknowledgements

Findings in this paper are derived from the Australian Workplace Barometer (AWB) project, funded by an Australian Research Council Discovery Grant – DP087900.