With mental health issues accounting for an increasingly large percentage of absenteeism from work, it makes good sense for employers to become knowledgeable about how depression can affect the bottom line. Recent studies have demonstrated the serious impact depression can have on productivity and profits.

The Costs

The July 18, 2003, issue of Psychiatric News, published by the American Psychiatric Association (APA), reported on the findings of a Depressive Disorders Study completed in 2002. The study found that workers with depression cost employers more than three times the amount associated with lost productivity from all other illnesses. The study estimated that workplace depression cost employers $44 billion a year, with 20 percent of costs due to absenteeism and 80 percent due to “presenteeism,” — their term for reduced productivity on the job.

Being Vigilant

Each employee represents a significant investment in both time and money. Recruiting and training the best people gives companies the corporate edge. Maximizing that investment is what good business is all about.

It makes good business sense, then, to be able to recognize the symptoms of depression earlier, rather than later, and be prepared to make those “reasonable accommodations” and keep your best workers on the job. If you are an employer with 15 or more employees in the public sector, you are bound by the provisions of the Americans with Disabilities Act (ADA).

No Good Time

The annual performance review is your opportunity to discuss everything that relates to an employee's work performance over the past year. If your company has a policy of semi-annual reviews or ties reviews to wage increases or bonuses, you have additional times to check in with your workers. There is no good time to tell an employee that she isn't cutting it and you're going to have to let her go.

However, suppose, at that review, your worker discloses that she is suffering from depression and produces a doctor's certificate attesting to that fact. As you have probably guessed, this changes everything. Now, you've got to follow the specifics of the ADA.

If that employee's sales quotas have slumped, and this can be attributable to depression, you cannot fire her. You can make what are called “reasonable accommodations” that do not cause you an “undue financial burden or do not disrupt the workplace or the service being provided.” Defining those terms is an attorney's bread and butter.

Employee Responsibility

It is the responsibility of the employee to inform the employer about a disability that will affect the ability to perform the duties of the job and to suggest accommodations that will allow you to perform your duties. Employees who do not disclose their disabilities may find they are not protected under the provisions of the ADA.