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Financial Impact of Depression

Depression is a mental illness that causes psychological and physical symptoms such as irritability, sleep disturbances, and loss of appetite. In addition to causing distress, depression negatively impacts the finances of the individual. There are many companies which have financial consequences from employees who suffer depression.

  1. Symptoms that Affect Productivity

    • According to the Diagnostic and Statistical Manual of Mental Disorders, 4th Edition (DSM-IV), common depression symptoms include a lack of energy, slowed activity, and difficulty concentrating. If an employee has depression, these symptoms can affect the employee's performance.

    Lost Income

    • When the depressed employee is absent from work due to the depression symptoms, the absenteeism causes a direct loss of income for the time missed and may be reflected in negative evaluations of job performance. Negative evaluations can lead to missed income from not receiving wage raises or promotions.

    Depression as a Disability

    • If the depressed individual becomes unable to work due to the symptoms, the person may file for Social Security Disability Insurance (SSDI). Though this provides some income to the depressed person, SSDI payments are a fraction of the person's past income.

    Cost of Treatment

    • According to the National Alliance for Mental Illnesses (NAMI), the most effective treatment for depression is a combination of psychoactive medication and therapy. Even with health insurance, the person may be responsible for part of the costs.

    Financial Impact on Employers

    • The absenteeism and loss of employee productivity is costly to employers. Employers often must pay an employee overtime wages to cover the duties of an absent employee.

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