According to some estimates, the global economy suffers a significant impact due to poor mental health among employees, resulting in companies losing about $1 trillion each year in productivity. This figure is projected to increase in the future. However, the efforts made by employers to address mental health issues may be having unintended negative consequences.

While we may assume that workplace programs designed to help employees with their mental health do so, the reality is not always so clear-cut. Research from Colorado State University finds that some can do more harm than good.

Putting HR policies to the test

The researchers quizzed around 1,000 employees from 174 organizations in South Korea. By speaking to people from so many different organizations, the researchers were able to better understand the impact of different HR policies and practices.

The employees who took part were requested to fill out a written survey comprising questions relating to their mental health. The questionnaire included queries such as “Do you experience moments at work when you feel extremely frustrated to the point of believing that life requires too much effort?” and “Do you often feel restless and anxious?”

Furthermore, the respondents were asked to provide feedback on a range of statements related to high-performance work systems, work-role overload, psychological empowerment, and organizational identification.

On the whole, the research revealed that high-performance work systems have the potential to impact employees positively or negatively. Additionally, the study found that the degree to which an employee identifies with their workplace can significantly influence their experience.

Identity matters

“We found that people who have higher identification with the organization are less likely to suffer from the negative impact,” the researchers explain. “Because they already identify with the organization, they tend not to interpret these policies as being exploitative. They’re also more likely to feel empowered and feel that their work has more meaning and enjoy the autonomy they have.”

Individuals with weaker organizational identification are more prone to experiencing adverse effects from HR policies and practices. As a result, it’s possible that well-intentioned policies may have a negative impact on employees who don’t have a good connection with their employer.

“Organizations that have these types of practices are generally hoping to improve employees’ overall mental health,” the researchers explain. “However, these practices can have negative effects on employees, even though their intention might not be to hurt employees.”

According to the research, a high-performance work system comprises a set of interconnected HR policies and practices that can impact employee mental health through psychological empowerment or work-role overload.

Psychological empowerment

Psychological empowerment is determined by four factors: a sense of meaning in one’s work role, self-determination in task completion, competency in one’s work role, and the impact of one’s work. In contrast, work-role overload arises when employees perceive that they have more demands than resources, leading to a sense of overwhelming workload, which can result in mental fatigue and long-term psychological health problems.

For instance, a policy aimed at giving employees more autonomy may seem universally beneficial on paper, but its effect on employees may vary. Some workers may feel empowered and motivated, while others may feel overwhelmed and unsupported.

“Having too much autonomy and having to decide what to do and how to do it sometimes can be a burden, too,” the researchers explain. “Having too much of that can feel like you have a lot of responsibility to develop procedures instead of having someone explain the established procedures to you.”

Making things better

A good place for managers to start is to make a particular effort to fully understand each of their employees. The findings also underline the importance of having employees who clearly identify with the aims and direction of the organization, and that managers should actively work to establish and maintain that connection.

“There are things that managers or organizations as a whole can do to really improve people’s feelings of belongingness and feelings of identification with their group or organization,” the researchers explain.

Encouraging employee socialization and providing ample opportunities for new hires to bond can create an environment that fosters a sense of belonging. Whether or not one identifies with a workplace often depends on the experiences and interactions they have with colleagues and their surroundings. Now is the time for managers to take this more seriously.