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The Role of Mental Health in the Workplace Economy: Why the “Happiest” Countries Have the Strongest “Prosperity” Ranking

In today’s fast-paced world, mental health has become a critical issue that significantly affects the global economy. Several countries have realized the importance of maintaining mental well-being to drive their economies forward.

This article aims to explore the relationship between mental health and workplace productivity and how the “happiest” countries can achieve a strong “prosperity” ranking. By examining the data presented in a recent OHS source story[1], we will suggest some potential strategies that can be implemented in workplaces to improve happiness and prosperity.

The Link Between Mental Health and the Economy

Mental health plays a significant role in advancing the economy. According to the World Health Organization (WHO), mental health disorders account for approximately 30% of the non-fatal disease burden worldwide and 10% of the overall disease burden[2]. These disorders affect individual’s ability to work effectively, leading to a loss in productivity, absenteeism, and increased healthcare costs.

On the other hand, research indicates that happier and mentally healthier individuals are more productive and contribute to a thriving economy. This connection between mental health and economic growth can be seen in countries with high happiness rankings, which often correlate with strong prosperity rankings.


Happiness leads to good mental health dreamstime xl 196360780 Pivotal HR Solutions Blog
According to data and surveys, the happiest workplaces and countries with happy workplaces, the higher the rate of productivity.


The Happiest Countries and Their Prosperity Ranking

According to the World Happiness Report, Finland, Denmark, and Switzerland were the top three happiest countries in 2022[3]. These countries have consistently ranked high in terms of happiness and prosperity. A common factor among them is their strong focus on mental health and well-being.

Finland, for example, has implemented various measures to promote mental health. The country has a comprehensive mental health policy and a national mental health strategy that emphasizes early intervention and prevention. This focus on mental health has led to a prosperous economy, with Finland ranked 12th in the 2021 Legatum Prosperity Index.

Similarly, Denmark and Switzerland have also made mental health a priority. Denmark offers extensive mental health services, including free access to psychologists for young people. Switzerland, on the other hand, has a robust mental health care system with an emphasis on community-based care. Both countries have strong prosperity rankings, Denmark ranked 5th and Switzerland 2nd in the 2021 Legatum Prosperity Index.

Applying Lessons from Happiest Countries to Improve Workplace Happiness and Prosperity

The success of these countries in maintaining a strong focus on mental health can serve as a model for organizations worldwide. By adopting some of their strategies, workplaces can enhance employee happiness and productivity, leading to a more prosperous economy. Some potential strategies include:

  1. Promoting Mental Health Awareness: Encourage open discussions about mental health and provide employees with resources to better understand and manage their mental well-being. This can help reduce the stigma surrounding mental health and make it easier for individuals to seek help when needed.
  2. Providing Access to Mental Health Services: Ensure that employees have access to professional mental health support, either through the company’s healthcare plan or by partnering with external organizations. This can include access to counseling, therapy, and other mental health services.
  3. Implementing Flexible Work Arrangements: Flexible work arrangements, such as remote work and flexible hours, can help reduce work-related stress and improve overall well-being. This can lead to increased job satisfaction, engagement, and productivity.
  4. Encouraging Work-Life Balance: Encourage employees to maintain a healthy balance between their work and personal lives. This can include offering paid time off, supporting employees in taking regular breaks, and promoting a culture that values well-being over excessive workloads.
  5. Providing Mental Health Training for Managers: Equip managers with the skills and knowledge necessary to recognize and address mental health issues among their team members. Training should focus on identifying signs of distress, providing support, and referring employees to appropriate resources.
  6. Investing in Employee Development and Engagement: Ensure that employees feel valued, supported, and engaged in their work by providing opportunities for growth and development. This can include offering training programs, promoting career advancement, and fostering a positive work environment.
  7. Supporting Physical Health and Well-being: Encourage employees to maintain a healthy lifestyle by providing access to fitness facilities, promoting healthy eating options, and organizing wellness initiatives, such as mindfulness and stress management programs.
  8. Fostering a Positive Workplace Culture: Create a work environment that supports collaboration, inclusivity, and open communication. Encourage team-building activities and recognize employees’ achievements, which can contribute to a sense of belonging and overall well-being.

Happiest workplace and countries have superior productivity and health dreamstime xl 267792965 Pivotal HR Solutions Blog

The Economic Benefits of Prioritizing Mental Health in the Workplace

Investing in mental health initiatives in the workplace not only benefits individual employees but also contributes to the overall economy. A healthy and happy workforce is more likely to be productive, innovative, and adaptable. As a result, companies that prioritize mental health can enjoy increased revenue and a competitive advantage in the market.

Moreover, addressing mental health issues in the workplace can lead to significant cost savings for organizations. Improved mental well-being can reduce absenteeism, presenteeism (working while sick), and staff turnover, all of which can negatively impact a company’s bottom line.

The Role of Governments in Promoting Mental Health in the Workplace

Governments also play a vital role in promoting mental health in the workplace. By implementing policies and regulations that support mental well-being, governments can create a more conducive environment for businesses to thrive. This includes providing funding for mental health services, encouraging research on mental health in the workplace, and developing guidelines for companies to follow.

In addition, governments can lead by example by ensuring that public sector organizations prioritize mental health and well-being. By adopting best practices and demonstrating their commitment to supporting employees’ mental health, governments can help set the standard for the private sector.

Challenges in Implementing Mental Health Initiatives in the Workplace

Despite the clear benefits of prioritizing mental health in the workplace, organizations may face challenges in implementing these initiatives. Some common challenges include:

  1. Limited resources: Smaller companies, in particular, may struggle to allocate sufficient resources to mental health programs. However, even simple and cost-effective interventions, such as providing access to online resources or facilitating peer support groups, can make a significant difference.
  2. Lack of awareness and understanding: Many people still lack understanding and awareness about mental health issues. Overcoming this challenge requires ongoing education and communication to help employees recognize the importance of mental well-being and reduce the stigma surrounding mental health.
  3. Resistance to change: Implementing mental health initiatives may require changes to existing workplace policies and practices. Organizations may face resistance from employees who are hesitant to adopt new ways of working. To overcome this, companies must emphasize the benefits of these changes and engage employees in the decision-making process.


The strong correlation between happiness and prosperity in the world’s happiest countries highlights the importance of prioritizing mental health in the workplace. By learning from these countries and implementing strategies to improve mental well-being, organizations can boost employee happiness, productivity, and ultimately contribute to a thriving economy.

Investing in mental health initiatives not only benefits employees but also leads to a more prosperous society. As we continue to navigate the complexities of the modern world, prioritizing mental health in the workplace is essential for driving economic growth and ensuring a brighter future for all.



[1] https://www.ohscanada.com/opinions/mental-health-plays-a-big-role-in-advancing-the-economy-we-need-a-measure-beyond-gdp/

[2] https://www.who.int/news-room/fact-sheets/detail/mental-health-strengthening-our-response

[3] https://worldhappiness.report/ed/2021/



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