Key Takeaways
Calculating the true ROI of Employee Assistance Programmes (EAPs) in Singapore requires a holistic approach that extends beyond just absenteeism and presenteeism, considering the broader impact on employee wellbeing, engagement, and overall business costs.
- Poor mental health costs Singapore employers an estimated SGD 15.7 billion annually, with presenteeism being the largest contributor.
- According to MOM, about one in three of more than 15,000 employees at employers that used iWorkHealth in 2024 reported work-related stress or burnout (a voluntary sample).
- Workforce mental health is a growing priority for employers globally, necessitating comprehensive support systems like EAPs.
In Detail
Workforce mental health and wellbeing are increasingly recognized as critical employer priorities in the evolving world of work, as highlighted by the World Economic Forum. This urgency is particularly pronounced in Singapore, where poor employee mental health imposes a significant economic burden. A 2022 web panel study published in BMC Psychiatry estimated that these issues cost Singapore employers an astounding SGD 15.7 billion annually. The study further breaks down this cost, revealing that presenteeism accounts for a substantial 81.6% (SGD 12.8 billion), while absenteeism contributes 14.2% (SGD 2.3 billion), and healthcare costs make up 4.2% (SGD 0.7 billion).
This data underscores the need for Singapore firms to adopt a more comprehensive approach to evaluating the return on investment (ROI) for Employee Assistance Programmes (EAPs), moving beyond solely focusing on absenteeism and presenteeism. The APAC region, with its diverse workforce and unique cultural contexts, stands to benefit significantly from EAPs that address the multifaceted nature of mental wellbeing.
The Hidden Costs of Presenteeism
Presenteeism, where employees are physically at work but not fully productive due to mental health challenges, represents the largest component of mental health-related costs for Singaporean employers, according to BMC Psychiatry. This phenomenon is often harder to quantify than absenteeism but has a profound impact on organizational efficiency and output. Traditional ROI calculations for EAPs might overemphasize reductions in sick leave, potentially overlooking the pervasive drain of presenteeism. Firms must consider how EAPs can improve focus, decision-making, and overall work quality, leading to a more engaged and effective workforce. By addressing underlying mental health issues, EAPs can help employees regain their full cognitive and emotional capacity, directly mitigating the costs associated with presenteeism.
Broadening the Scope of EAP Impact
Beyond direct productivity losses, the impact of EAPs extends to areas such as employee retention, organizational culture, and talent attraction. While not always immediately quantifiable in monetary terms, firms can track turnover and their reputation as an employer of choice alongside EAP use. The World Economic Forum emphasizes that mental health is a growing employer priority, suggesting that companies with robust mental health support systems are better positioned to attract and retain top talent. For Singapore firms, this means that EAP ROI should also consider the long-term benefits of a healthier, more stable workforce, which can lead to reduced recruitment and training costs, and a more resilient organizational structure.
Addressing Work-Related Stress in Singapore
Data from the Ministry of Manpower (MOM) indicate that a significant portion of the workforce is struggling, with about one in three of more than 15,000 employees at employers that used iWorkHealth in 2024 reporting work-related stress or burnout (a voluntary sample). This highlights the direct link between workplace conditions and employee mental health. EAPs, by offering confidential counselling and support services, can serve as a crucial resource for employees grappling with work-related stressors. When evaluating EAP effectiveness, firms should look for improvements in employee stress levels, reported job satisfaction, and a reduction in burnout indicators. These outcomes, while not always translating directly into immediate financial figures, contribute to a more positive and productive work environment, ultimately impacting the bottom line through improved morale and reduced long-term health costs.
Putting This Into Practice
Here is a practical way to turn this into action.
Key Questions Answered
What is the estimated annual cost of poor employee mental health for Singapore employers?
Poor employee mental health costs Singapore employers an estimated SGD 15.7 billion annually, according to a 2022 web panel study published in BMC Psychiatry.
How is this cost primarily distributed?
Presenteeism accounts for the largest portion at 81.6% (SGD 12.8 billion), followed by absenteeism at 14.2% (SGD 2.3 billion), and healthcare costs at 4.2% (SGD 0.7 billion).
Why is it important to look beyond absenteeism and presenteeism when calculating EAP ROI?
While absenteeism and presenteeism are significant, a holistic EAP ROI calculation should also consider broader impacts such as improved employee engagement, retention, organizational culture, and talent attraction, which contribute to long-term business sustainability.
How common is work-related stress or burnout among Singapore employees?
MOM told Parliament on 22 September 2025 that about one in three of more than 15,000 employees at employers that used iWorkHealth in 2024 reported work-related stress or burnout (a voluntary sample).
Why is workforce mental health a growing priority for employers globally?
The World Economic Forum identifies workforce mental health and wellbeing as a growing employer priority due to its increasing impact on productivity, engagement, and overall business performance in the changing world of work.
Sources
- 6 global employers on how to improve workplace mental health | World Economic Forum, 6 global employers on how to improve workplace mental health
- Prevalence and economic burden of depression and anxiety symptoms among Singaporean adults: results from a 2022 web panel | BMC Psychiatry | Springer Nature Link, Prevalence and economic burden of depression and anxiety symptoms among Singaporean adults: results from a 2022 web panel
- Ministry of Manpower, Written Answer to PQ on Workplace Burnout (22 September 2025)