Depression is one of the most common causes of disabilities and is associated with regular absenteeism in the workplace. Regular off-days reduce productivity and impact negatively the company’s profitability. Therefore, depression and treatment have the potential of changing the financial position of employees and employers. Depression is a mood disorder that alters the thinking, behavior, and feelings of an affected individual. It is treatable with high recovery rates, which allows employers to conduct regular screening and offer treatment options for employees.
Ownby et al. (2006) reveal that early detection and treatment will improve cognitive function, which will enhance productivity at work. Thomas et al. (2020) observed that depression is on the rise among the young working force in the UAE, a clear indication of fear of uncertainty for the future. This is worrying because the affected young people are in the most productive period of their lives.
The work-from-home formula many organizations adopted after the COVID-19 outbreak has contributed to increased cases of depression. Many employees have to tolerate working in informal environments with much destruction, yet they have specific deliverables to achieve (Thomas et al., 2020). These conditions have raised the risk factors of depression, especially for working mothers who have more family responsibilities. The rising number of mental illnesses at work has increased toxic work environments, reducing productivity (Rasool et al., 2019).
Workers are still expected to maintain high productivity levels in informal environments. Furthermore, working away from the office reduces teamwork and collaboration on tasks. The pressure to perform in unlikely situations has increased the risks of mental illnesses. Such conditions affect the mood of individuals; therefore, straining interactions. Early detection and treatment will improve work relationships between colleagues, which will, in turn, improve profitability.
There is inadequate information on the importance of screening and treatment to the workforce. Insufficient studies are comparing the impact of screened and unscreened groups in a workplace (Domingos Neto et al., 2019). Most organizations do not carry out regular screening programs to determine the number of depressed individuals they have. However, it is possible to conduct an evaluation using available information. According to a study by Evans-Lacko et al. (2016), 1.6% of employees in Germany missed work because of depression-related reasons. Accumulatively, depressed individuals miss an average of 64 days in a year.
Integrating pharmacotherapy and psychotherapy treatment options proved beneficial for organizations and employees for employers compared to the amount lost due to absenteeism (Evans-Lacko et al., 2016). Notably, psychotherapy yielded better results in terms of costs compared to pharmacotherapy. A healthy human resource is critical to a company’s growth. Productivity is reduced by the absence of some employees, thereby reducing revenues and profitability.
Determining the cost of the program and the financial impact, it will have on the organization can help carry out a cost-benefit analysis. The program should be financial benefits companies who use it for their employees compared to those that do not. I will price the program at a figure lower than the industry average to gain more clients. The program will cost an annual figure of $2,000 per individual which will be settled by the company. Ceniza-Levine (2015) estimated that an average employee at Google contributed $700,000 to the company revenue annually, translating to almost $2,000 per day.
Therefore, an employee who misses 64 days will contribute to the company losing an accumulated amount of $128,000 on average per year per depressed individual. Therefore, a company spending $2,000 per worker on screening and treatment will increase revenue by $126,000 per employee. Furthermore, if affected employees are not enrolled in a treatment plan, their condition might deteriorate to acute depression, which can result in more days of absenteeism. Therefore, it is beneficial for companies to enroll in the program because of the potential impact on revenue with reduced absenteeism. Maintaining low off days at work has the potential of increasing company profits.
I will evaluate the outcome of my service by calculating the cost-benefit analysis of the companies joining the program. Organizations in the program will make more money compared to companies with a high number of depressed workers. To perform a credible cost-benefit analysis, the onboarded organization should provide critical data on employees before and after the program. The company will provide data on the contribution of each employee to the company’s revenue.
The average number of days employees take off work due to depression will be noted before the program begins. Organizations that will refer their employees to my program should notice fewer depressed workers, and reduced rates of absenteeism, translating to higher productivity. The analysis will reveal to the companies the financial benefit of the program as opposed to having many absentee workers. Having the maximum number of employees at work will maximize revenue for the company.
Depression is a serious mental health condition that affects individuals from every class, race, and demographic background. If untreated in time, it can become acute, which will limit the normal functions and duties of affected individuals. Mental conditions cost companies in the United States and the UAE a considerable amount of revenue every year. Every company works to maximize its revenue and profits.
Designing a reliable treatment program that is reliable and enjoyable can offer organizations an opportunity to increase profits and improve customer service standards and efficiency. Available services do not achieve the required results; therefore, they are mostly abandoned by employees for being too time-consuming and ineffective. Using the cost-benefit analysis approach will convince companies to join the program because of the impact on their bottom line.
Depression limits the daily cognitive function of the affected individuals. The illness is one of the significant causes of worker absenteeism in UAE organizations. The economic impact of depressed employees missing work is huge on companies. Offering screening and treatment options for these organizations will improve profitability. Fragala et al. (2021) acknowledge that although mental illnesses are treatable, they are often underrated or ignored. More than two-thirds of people with mental illness are untreated, and most individuals wait for an average of 11 years to seek medication or therapy.
The undertreated mental condition leads to a severe loss of productivity (Fragala et al., 2021). Based on the mentioned reasons and the impact of the illness on productivity, my program will target every demographic group.
The program will include pharmacotherapy and psychotherapy as the main services. Induced demand for certain medications can affect demand for my services. Financial incentives on certain drugs will influence the program to prefer prescribing specific medications. Mohamadloo et al. (2019) acknowledge that sharing profits with pharmaceutical companies influences the prescription of the promoted drugs. Another factor that will affect the supply of the service is the quality of customer relationships.
A client who is comfortable with the program is likely to come back or buy other services. To create a customer base, the program prices are lower than the market average. The cost of the service will bring in more clients. Finally, the program is designed to be short and enjoyable. One reason why other programs have failed is the prolonged period of the sessions. A short program allows the patients to continue with work and house chores at the same time.
My program will be beneficial because Fragala et al. (2021) reveal that a vast number of traditional workplace mental care programs have failed to impact positively due to a limited number of providers. The failure of these mental healthcare services has resulted in reduced revenue for organizations due to absenteeism. Additionally, the authors claim that the extended time of treatment has discouraged workers, who are often busy, from continuing and finishing the treatment programs. A short program will allow workers to complete and move on to other engagements. An impactful program will be embraced and adopted by most organizations.
The demand will be elastic. Browning and Zupan (2020) mention the elasticity of demand can be affected by the price of a service. A reasonably priced program designed to be flexible and engaging to workers will create demand for the service while improving the productivity of onboarded companies. There are a minimal number of programs that offer impactful services to organizations in the UAE and the United States.
The program is cheaper than the market average, making it more acceptable to organizations. Additionally, the engaging nature of the service will attract more workers to the program. The cost-benefit analysis will allow the companies to increase their revenue; therefore, more organizations will be interested in the program. Therefore the demand for the service will increase because of low the low price and high impact on companies’ revenues.
The demand for the program will increase because of the low price, reliability, and the impact it will have on organizations. Affected individuals will want to be part of the program because it is short and enjoyable. Companies will adopt the program because it will allow them to maximize profits.
I will encourage a supplier-induced demand. Supplier-induced demand is encouraging the patients to procure other services apart from the core service of the program. There is an opportunity for the program to cross-sell other mental health programs to families and friends. Most mentally ill patients go untreated mainly because of unreliable care programs (Fragala et al., 2021). Fear of discrimination from the public makes some of the patients hide their mental condition. Beginning a credible service can bring in more members of the community to the program. Rostami, Shojaei, and Bahmaei (2020) confirm that induced demand in the medical services sector increases revenue for healthcare providers. Furthermore, available services have not been effective; therefore, a well-designed service can offer more than one product. Offering other services will be more beneficial to clients making them want to come back.
Although supplier-induced demand has disadvantages for patients, it gives the program opportunity to grow financially. Since it will be a new business, I have to take every available chance to create more revenue. Supplier-induced demand will also allow me to introduce other services to the program. I will offer an opportunity to become a one-stop-shop for clients needing mental health treatment.
References
Evans-Lacko, S., Koeser, L., Knapp, M., Longhitano, C., Zohar, J., & Kuhn, K. (2016). Evaluating the economic impact of screening and treatment for depression in the workplace. European Neuropsychopharmacology, 26(6), 1004-1013.
Domingos Neto, J., Myung, E., Murta, G., Vieira, A., Lima, P. R., Lessa, L. A., & Bernardo, W. M. (2019). Depression in the workplace: Screening and treatment. Revista da Associação Médica Brasileira, 65(3), 295-315.
Fragala, M. S., Hunter, J. L., Satish, A., Jelovic, N. A., Carr, S., Bailey, A. M.,… & Peters, M. E. (2021). Workplace mental health: Application of a population health approach of proactive screening to identify risk and engage in care. Journal of Occupational and Environmental Medicine, 63(3), 244-250.
Ownby, R. L., Crocco, E., Acevedo, A., John, V., & Loewenstein, D. (2006). Depression and risk for Alzheimer disease: Systematic review, meta-analysis, and metaregression analysis. Archives of General Psychiatry, 63(5), 530-538.
Rasool, S. F., Maqbool, R., Samma, M., Zhao, Y., & Anjum, A. (2019). Positioning depression as a critical factor in creating a toxic workplace environment for diminishing worker productivity. Sustainability, 11(9), 2589.
Thomas, J., Barbato, M., Verlinden, M., Gaspar, C., Moussa, M., Ghorayeb, J.,… & Bentall, R. P. (2020). Psychosocial correlates of depression and anxiety in the United Arab Emirates during the COVID-19 pandemic. Frontiers in Psychiatry, 11, 1248.
Ceniza-Levine. C. (2015). Seven Contributions Indispensable Employees Make To Their Companies. Forbes. Web.
Browning, E. K., & Zupan, M. A. (2020). Microeconomics: Theory and applications. John Wiley & Sons.
Rostami, V., Shojaei, P., & Bahmaei, J. (2020). Interpretive Structural Modeling of the Factors Affecting Induced Demand for Health Services. Journal of Health Management & Informatics, 7(2), 107-116.
Mohamadloo, A., Zarein-Dolab, S., Ramezankhani, A., & Salamzadeh, J. (2019). The main factors of induced demand for medicine prescription: A qualitative study. Iranian journal of pharmaceutical research: IJPR, 18(1), 479.