Why Mental Health Matters in the Modern Workplace

With the rising cases of anxiety, depression, and burnout among professionals and employees worldwide, conversations about mental health are no longer optional but necessary.
And in this fast-paced business environment, prioritising mental health is a must and not just a moral one.
We, at MDM Systems, understand that a healthy team is a productive team. And a healthy team starts with having team members who are well taken care of physically, emotionally, and mentally.
The current state of mental health in the workplace
Did you know that according to the World Health Organization (WHO), there are an estimated 12 billion work days lost each year due to depression and anxiety? These missed workdays cost the global economy nearly $1 trillion. In Australia alone, one in five people experience mental health conditions every year.
Why employers should care
As mentioned, a healthy team is a productive team. And based on the above statistics of WHO there is a trillion dollar missed opportunity if we let our team members suffer from mental health problems. This is why employers should care and should do something about it.
Many businesses invest in physical infrastructure, tech upgrades, and performance training. But when it comes to investing in their employees’ mental health, efforts often fall short. Here’s why companies like yours shouldn’t ignore it.
1. Mental health impacts performance
As mentioned, unaddressed mental health issues can lead to poor performance, lower customer satisfaction, and increased rework or errors—especially in roles requiring focus, empathy, or creativity. So if you want a productive workforce, you need to look into the mental health needs of your employees.
2. Retention and recruitment are affected
Did you know that employees are more likely to stay with companies that support their mental well-being? For recruitment agencies and BPOs, that means stronger talent pipelines and happier clients. So it is important to include mental health strategy efforts in your company to attract potential candidates.
3. It’s a legal and ethical responsibility.
In Australia, employers have a legal duty to manage psychosocial risks in the workplace. This includes taking reasonable steps to prevent harm from stress, bullying, and overwork.
Despite the need for mental health efforts in the workplace, there are still a lot of things to consider and challenges to solve, especially in the outsourcing and BPO industry. Here are some of them:
Common mental health challenges in the outsourcing industry
1. Irregular shifts or night work
Since outsourcing offers 24/7 flexibility, most employees suffer from irregular shifts and night work. With the difference in timezone, many adjust their body clock to be able to perform tasks. This means skipping proper sleep and ruining the body clock.
2. High performance expectations
One of the sources of burnout and anxiety in the workplace, not just in the outsourcing industry, but in any type of industry, is the high performance expectations. This puts pressure on employees that then turn into anxiety and depression.
3. Isolation in remote and hybrid set-up
Humans are naturally social beings. They need to be around people. But with the remote and hybrid setup of most outsourcing companies, most employees spend time working alone without socialising or interacting with other people. This can result in depression, loneliness, and anxiety. Unlike with the normal office set-up where they can interact with their colleagues during break time or company events.
4. Dealing with difficult clients
Most employees work in different places, which means different people and cultures. This can result in miscommunication and difficulty in handling foreign clients. With this, it can result in anxiety and depression.
These are some stressors that when not addressed properly can lead to burnout. And burnout is a condition so serious that the WHO officially recognized it as workplace syndrome in 2019.
How to know if your team members might be suffering from mental health problems? Here are the signs you need to look out for:
Signs your employees may be struggling
Sudden drop in performance or attendance
As mentioned, a healthy employee is a productive employee. If you notice that there is a sudden drop in performance or attendance of one of your employees, you need to check on him/her to know what’s wrong. Start a conversation about what is happening in her/his life, work, or self. A simple catch-up of “How are you?” can go a long way.
Mood changes or irritability
If there is a sudden change in attitude, this may be a sign that something is off or different with your employee. You may want to talk to them and ask them if there is something wrong with their work. Ask if they feel too overwhelmed with tasks. Ask them if they need a bit of time off.
Withdrawal from team discussions
Noticed that your formerly jolly employee now skips conversation or is always alone? There mght be something wrong. This is actually another sign that you need to look out for to help your employees with what they need.
Fatigue or frequent sick days
Mental health problems can also affect your employees physically. Their health might deteriorate. With this, it is good to check on them and ask if there is something that you, as an employer can do.
These are just some of the things that you need to look out for. These signs may be subtle at first, but if left unchecked, can grow into bigger issues. And this can affect not only the employee but your entire team culture.
Wondering how you can change this and help support your employees? Here are some ways that you can do it.
How employers can support mental health
1. Create a safe and open culture
Start by having open conversations about mental health. Train team leads and HR managers to handle these discussions with empathy and confidentiality. Introduce “mental health check-ins” during one-on-ones or monthly team meetings.
2. Offer flexible work arrangements
In this day and age, with things changing so fast, flexibility can reduce stress. Whether it’s hybrid work, staggered shifts, or mental health days, give employees some control over how they manage work-life balance.
3. Provide access to mental health resources
Offer easy access to mental health resources, licensed counselors, or online wellness platforms. Consider partnerships with telehealth providers who specialise in mental health.
4. Train managers in mental health awareness
Managers are the first line of support. Equip them with training on identifying signs of distress, active listening, and when to refer an employee to professional help. With this, you don’t need to access a therapist right away. Your managers can easily and right away deal with the situation if needed.
5. Promote work-life balance
It is important to set clear boundaries in the workplace. Discourage after-hours emails and promote taking lunch breaks, rest days, and annual leave without guilt. Let your employees also enjoy other hobbies or activities outside work to keep them more relaxed and balanced in life.
6. Recognise and reward efforts
Don’t forget to celebrate wins—big or small. Recognition boosts morale and motivates employees to stay engaged, even during challenging times.
7. Encourage peer support
Learn to foster a culture of kindness and teamwork. Peer support groups or buddy systems can provide emotional relief and improve connection. Remember, humans are social beings, they need friends and buddies to make them feel that they belong in a group and give them a sense of belongingness. This can avoid the feeling of being lonely in the workplace.
What MDM Systems Is Doing Differently
At MDM Systems, we believe that great business starts with great people—and that means supporting the whole person, not just the employee.
Our commitment to mental health includes:
- Encouraging wellness conversations with clients
- Helping build remote work cultures that respect work-life balance
- Promoting respectful and inclusive virtual team environments
- Offering scalable outsourcing solutions that help reduce stress on in-house teams
Because when your team feels supported, they don’t just show up—they thrive.
The future of work is not just about automation, efficiency, or scaling fast. It’s about building organisations that care for their people. Mental health is not a buzzword. It’s a foundation for a resilient, high-performing team.
Whether you’re managing in-house staff or working with an outsourced team, prioritising mental well-being isn’t just the right thing to do—it’s a smart business strategy.
If your company is ready to grow with purpose, MDM Systems is here to help—with the talent, support, and human focus your business deserves.
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