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An Executive Guide to Workplace Depression

Author(s): Joseph Kline, Jr. and Lyle Sussman


Source: The Academy of Management Executive (1993-2005), Vol. 14, No. 3, Themes:
Structure and Decision Making (Aug., 2000), pp. 103-114
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/4165663
Accessed: 08-04-2016 00:18 UTC

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? Academy of Management Executive, 2000, Vol. 14, No. 3

......................................................................................................................................................................

An executive guide to
workplace depression

Joseph Kline, Jr., and Lyle Sussman

Executive Overview
Whether coping with their own lives or managing the lives of others, executives face
the reality of major depression. Unfortunately, mental illness generally, and depression
specifically, are not as well understood as physical disabilities. The general public
continues to hold prejudices and misconceptions regarding the cause and treatment of
depression. In this article we summarize relevant literature addressing these prejudices
and misconceptions and analyze the major issues managers should consider when
dealing with depressed employees. We offer four prescriptions for balancing the
conflicting demands imposed by the law with concern for the employee, the safety of
others, and shareholder value.
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And yet the dread and despair I had been infirmity, cloaking it behind personal time, sick
feeling for many weeks hovered around my time, and vacation.3 The root cause of depression's
head like a black cloud-following me stigma, like the root cause of any other popular
wherever I went ... I found myself seeking a misconception, is lack of understanding and accu-
kind of quiet solitude as far away from my rate information. Such information reveals, for
friends and coworkers as possible . .. I instance, that:
couldn't understand why I could no longer
perform the simplest tasks ... It was as if I * depression is the seventh most common cause of
was paralyzed. Having always been a per- adult deaths;4
fectionist, it was difficult for me to grasp * more than one in six Americans will suffer an
why I was suddenly so totally useless and episode of major depression in their lifetimes;5
unproductive.' * depression costs society $44 billion yearly;6
* depression-related absenteeism costs busi-
Can anyone truly understand the "dread and de- nesses $11.7 billion yearly;7
spair" experienced by another? This question is at * managed care's reliance on primary care gate-
the heart of a serious and misunderstood illness- keepers results in inadequate detection and
major depression. More than 30 percent of the pop-
treatment of major depression.8
ulation still hold the antiquated belief that the
mentally ill simply lack the will to help them-
Depression is not only a societal problem. It has
selves.2 Proponents of this misconception also tend
profound implications for managers as well. Aside
to minimize the gravity and consequences of de-
from dealing with the societal norms and personal
pression. The stigma attached to depression is
prejudices associated with mental illness, manag-
probably in part responsible for the shame and
ers must also balance the conflicting demands im-
embarrassment that so often accompanies the
diagnosis. posed by the Americans with Disabilities Act
(ADA),9 along with humanitarian concerns for the
troubled employee, against the constant need to
The Scope of Depression improve shareholder value. In an increasingly liti-
The stigma of depression thrives in the workplace. gious society, managers often find themselves try-
Eighty-four percent of 4,000 HR professionals sur- ing to help the employee without hurting the com-
veyed believe that depressed workers hide their pany.

103

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104 Academy of Management Executive August

The purpose of this article is to help managers or loss of energy; problems thinking, concentrating,
deal with the conflicting demands created by the or deciding; feelings of worthlessness; excessive or
depressed employee. Specifically, we summarize inappropriate guilt; and thoughts of death or suicide.
Finally, the signs and symptoms must be present for
at least two consecutive weeks. Because it takes time
In an increasingly litigious society, for depressed individuals to actually recognize that
managers often find themselves trying to they are depressed and need help, it is extremely
help the employee without hurting the rare for a patient to be evaluated before this two-
company. week period has elapsed.
Difficulty in concentrating may be one of the most
prominent symptoms in affected workers. A de-
and highlight four major issues affecting organi-
pressed employee may be unable to think clearly,
zational and managerial responses to employee
process information well, or contribute effectively in
depression. First, we define depression and high-
groups.'4 Turner extends the list of job-related signs
light its prevalence in the workforce. Second, we
of depression to include decreased productivity, mo-
summarize the direct, indirect, and noneconomic
rale problems, lack of cooperation, safety problems,
costs of employee depression. Third, we summa-
accidents, absenteeism, complaints of constant fa-
rize the latest clinical data concerning the treat-
tigue, complaints of unexplained aches and pains,
ment of depression. Finally, we discuss the contro-
and alcohol and drug abuse.15
versial effects of managed care on the diagnosis
and treatment of depression, and the consequent
implications for corporate health plan choices. We Demographics of depression in the workplace
then synthesize these summaries into four pre- Depression knows no boundaries. The disease can
scriptions managers should consider when bal-
strike executives as easily as entry-level workers,
ancing compassion for the employee with the need
but with more devastating effects on the business.
to protect and enhance shareholder value.
The organizational consequences of depression
may be exacerbated as a function of the overrep-
What is Major Depression? resentation of men in the upper echelons of most
companies. With their need to reflect a strong ex-
Major depression is a serious and frequently chro- terior and to exude control, depressed men are
nic mood disorder characterized by one or more ma- more likely than women to deny their illness. Since
jor depressive episodes in the absence of mania or signs of helplessness are considered unmanly,
hypomania.10 The disorder is better known to the men are more likely to hide their illness, thereby
general public by the term clinical depression. sliding deeper into depression.'6
The Diagnostic and Statistical Manual of Mental How common is major depression? According to
Disorders,"I commonly called DSM-IV, is the diagnos- the National Comorbidity Survey, a landmark epi-
tic bible of the mental health community. It defines a demiological study of 8,098 15- to 54-year-olds, ma-
major depressive episode by specific criteria that go jor depression is the second most common mental
well beyond the concept of sadness. Diagnostically, illness in the United States, after alcoholism.'7 Al-
major depression exists either as a single episode or most 13 percent of men and 21 percent of women
in recurrent forms. Once an individual experiences will experience at least one episode of major de-
the first episode, there is a 50-percent chance of a pression during their lifetimes. Episodes of major
second episode months to years later.'2 With each depression occur most commonly in victims of ma-
episode, the risk of future episodes increases. jor depressive disorder.'8 The likelihood of an in-
dividual's having a major depressive episode in
any 12-month period-known as the 12-month
Diagnosis of depression
prevalence-is about eight percent for men and 13
The DSM-IV specifies that the diagnosis of major percent for women.
depression requires the presence of five signs and When employees are able to confidentially dis-
symptoms,'3 including either a depressed mood or cuss their depression, the scope of this problem
markedly diminished interest or pleasure in all or comes into sharper focus. One Dayton, Ohio, hos-
most activities. Additional signs and symptoms must pital opened a depression hotline for its 1,800 em-
be present from a list that includes marked psy- ployees, and in a short time received over 200 calls,
chomotor retardation or agitation (slowed or agitated an 11-percent response rate.'9 These percentages
movements, for example); significant appetite or support the 12-month prevalence rate of major de-
weight change; significant changes in sleep; fatigue pressive episodes. In 1988 aznd 1989, Westinghouse

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2000 Kline and Sussman 105

conducted clinical interviews with 1,879 of its em- having at least one day in the previous three
ployees to assess the prevalence of depression in months during which they were unable to main-
its workplace.20 The findings were sobering. Nine tain their normal work activities because of emo-
percent of male workers and 17 percent of female tional problems.25 Depression also decreases the
workers admitted to having suffered an episode of employability of many workers: One study found
major depression in the previous year, and lifetime that the employment rates for male and female
prevalence rates were 23 percent and 36 percent, workers with recent psychiatric illnesses were re-
respectively. Over 50 percent of the affected work- duced by 11 percent.26 These figures clearly dem-
ers in the study claimed that their work was ad- onstrate the significance of the indirect costs of
versely affected during their depressive episodes. depression.

The Costs of Depression


Direct versus indirect costs
As with most significant problems confronting
Restricting managerial focus to direct costs results
managers, workplace depression has both eco-
in significant distortion of both the total economic
nomic and noneconomic costs. Only the former are
consequences of depression and the appropriate
typically revealed in spreadsheets, financial ra-
organizational response. If management considers
tios, and year-end reports.
only the direct costs of an illness, the least expen-
sive response to the illness is not to treat it. But if
Economic costs of depression the focus is broadened to include the indirect costs
of the illness, a different decision may be more
In 1994, almost $1 trillion was spent for health care
economically sound. In short, the cost of treating
in the United States.2' Businesses picked up 30
the illness may be less than the economic impact
percent of that tab. The direct costs to businesses
of the untreated illness.
are those associated with the diagnosis and treat-
ment of employee illness or injury, including em-
ployer health insurance premiums, Medicare, In short, the cost of treating the illness
workers' compensation, temporary disability in- may be less than the economic impact of
surance, and in-house health services. These costs
the untreated illness.
represent approximately a nine-percent premium
on total wages.
Indirect costs of illness and injury are more dif-
The Americans With Disabilities Act
ficult to identify and quantify. Moreover, they are
traditionally ignored in discussions of health care When the ADA was enacted into law in 1990, it sent
costs, but represent the largest portion. The total shock waves throughout the business community.
societal cost of depression in 1990 was estimated to Because the act mandated that employers provide
be almost $44 billion per year.22 Three-fourths of reasonable accommodations for disabled workers,
that amount, however, were indirect costs, primar- managers were forced to rethink their prejudices
ily from productivity losses and lost wages be- and policies. Moreover, they had to consider the
cause of time away from work.23 economic consequences of providing those accom-
Specifically, the indirect costs of depression in- modations. Prior to the act, employers were some-
clude diminished and lost work performance, ab- times capricious in their handling of the temporary
senteeism, accidents, and comorbid or coexisting and permanent disabilities caused by mental ill-
conditions resulting from depression. Comorbidity ness. The ADA, however, forced employers to seri-
occurs, for example, when depressed employees ously consider their existing policies, or lack
self-medicate their depression with alcohol, thus thereof.
gaining a second, comorbid disorder in need of Regardless of the spirit of the law, its letter gen-
treatment. Employee incapacitation and absentee- erates considerable debate among employees, em-
ism because of depression result in annual losses ployers, and governmental agencies. The ADA has
of $12.1 billion and $11.7 billion, respectively. An- created a growth industry for attorneys willing and
other $7.5 billion is lost as a result of depression- able to debate the nuances of such terms as "dis-
related suicides. ability," "impairment," "major life activity," "sub-
Work cutback is reputed to be even more prob- stantially limits," "qualified person with disabili-
lematic than absenteeism.24 Three percent of male ty," "reasonable accommodation," and "undue
and 4.5 percent of female workers interviewed in hardship."27
the Epidemiologic Catchment Area Study reported Perhaps the most compelling evidence of both

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106 Academy of Management Executive August

the incidence of depression in the workforce and Suicide


the role of ADA is the increasing number of official
Suicidal thoughts are a frequent symptom of major
complaints reported by the Equal Employment Op-
depression. No symptom of depression evokes
portunity Commission. The agency began tracking
more urgent psychiatric referrals from other men-
complaints in 1994. In the 1995 budget year, the
tal health professionals than suicidal ideation,
commission received almost 1,400 complaints re-
and for good reason. Over 50 percent of all suicides
lated to depression in the workplace, a 52-percent
are committed by individuals in a major depres-
increase over the preceding year.28
sive episode.32 Approximately 15 percent of un-
Human resource staffs often experience confu-
treated individuals suffering from major depres-
sion when accommodating employees who experi-
sion eventually succumb to this tragic, final act of
ence psychiatric disabilities.29 The ADA forbids
violence.33 In treated individuals, this percentage
employers from discriminating against mentally
may fall as low as three percent, a dramatic ben-
ill workers if they are otherwise qualified, and
efit of treatment.
mandates that employers take reasonable steps to
The risk of suicide appears to be greatest in the
accommodate them. The problem, however, is that
first three months of an episode of major depres-
disabilities associated with major depression and
sion and the first five years of recurrent major
other mental illnesses are not always obvious to
depression.34 Particular stressors keyed to the life
others. This invisibility creates an obstacle in es-
cycle can become precipitants for depression and
tablishing accommodation parity. The lack of eas-
the final precipitants for suicide in a depressed
ily observable evidence of impairment makes it
individual.35 In the 20- to 40-year-old age group,
more difficult for managers to accept the reality of
interpersonal conflicts, separation, and rejection
a disability resulting from a mental illness.
are most common. After age 40, economic problems
Businesses must contend with the economic costs
prevail. Medical problems gain increasing impor-
of accommodations for disabled employees, but the
tance after 60 years of age. Psychological autop-
actual cost may be insignificant. Several studies on
sies of suicide completers reveal that a large per-
psychiatric-based accommodations have concluded
centage received inadequate treatment or none at
that accommodations cost nothing in the majority of
all.
cases.30 For example, one study demonstrated that
only one case in 322 requests for accommodations
actually cost the company anything-and that cost
Violence toward others
was $25. Most employers who have made accommo-
dations report coming out ahead on costs. Typical Over two million workers are physically assaulted
accommodations include reducing the employee's in the workplace every year.37 Although family
pressure and responsibility, and reallocating duties. members and customers initiate many of these
Although many depressed employees will be tempo- assaults, depressed coworkers cannot be over-
rarily disabled and on leave until their antidepres- looked as another causal agent. Emerging expla-
sant medication takes effect, most do not require any nations of workplace violence suggest that isolat-
accommodations.3' ing the specific situational and psychological
causes of employee violence is problematic at
best, and must incorporate multiple, interacting
Typical accommodations include predictors.38 Moreover, one might intuitively pre-
reducing the employee's pressure and sume that depressed individuals, deep within their
responsibility, and reallocating duties. well of dread and despair, would be the least likely
perpetrators of such acts. The evidence, however,
does not bear this out. In fact, one study suggests
that depressed individuals may be responsible for
Noneconomic costs of depression
one-third of the violent acts committed in the work-
Only a portion of the costs of depression can or place.39
should be measured in economic terms. Violent acts Finally, the risk that depressed employees pose
directed against the self and others are even greater to themselves, coworkers, and customers raises the
consequences of depression, and may affect the specter of financial and economic costs of lawsuits
business more profoundly than the economic conse- and litigation. Employers are increasingly held li-
quences of depression. Suicide attempts, completed able for acts of workplace violence, most often on
suicides, and workplace violence are the principal the basis of negligent hiring and retention of vio-
noneconomic costs of undetected, inadequately lent employees. The legal argument posits that the
treated, or untreated depression. employer is deemed liable if the court determines

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2000 Kline and Sussman 107

that the company knew the employee was violent These findings emphasize the importance of rapid
or that the hiring practices were inadequate.40 detection and effective treatment of major depres-
sion.

Treating Major Depression


Treatment and time
Most episodes of major depression are respon-
Managerial responses to employee depression too
sive to treatment.4' Moderate and severe cases,
often reflect a poor understanding of and unrea-
with symptoms beyond the minimum threshold
sonable expectation for the time required for suc-
necessary for diagnosis, will likely require med-
cessful treatment. Although an antidepressant typ-
ication in addition to psychotherapy and, at a
ically produces a faster treatment response than
minimum, deserve a psychiatric evaluation. An-
psychotherapy, its response time is far greater
tidepressant medication is effective in 60 to 80
than the few days it normally takes for an antibi-
percent of those cases. Mild cases may be re-
otic to treat an infection. Biology dictates the tem-
sponsive to psychotherapy alone. However, indi-
poral course of antidepressant action. Antidepres-
viduals with mild levels of depression are much
sants produce molecular changes in the brain,
less likely to seek treatment, because their symp-
which take place only after several weeks of treat-
toms are less debilitating.
ment.
The symptoms of a moderate or severe episode
Most episodes of major depression are of major depression may render an employee in-
responsive to treatment. capable of working until the antidepressant takes
effect. If these employees try to continue working
during this period, their productivity will be notice-
Unfortunately, neither therapy nor medication ably diminished. The senior author witnessed nu-
work overnight. The fastest response typically merous cases in which employees with moderate
occurs with medication. The antidepressant re- or severe depressions were virtually harassed by
sponse evolves over several weeks and most pa- their managers to get them to return to work during
tients return to work free of symptoms as early as the initial weeks of antidepressant treatment. Such
a month after the initiation of treatment.42 With behavior rarely facilitates treatment and may be
the newer classes of antidepressants such as counterproductive, heightening the patient's feel-
Prozac, side effects are uncommon and generally ings of guilt and worthlessness.
do not adversely affect work. Antidepressant Some patients do not respond to the initial med-
treatment is usually continued at least four to six ication regimen. In such cases the psychiatrist will
months after symptom resolution. In the case of probably increase the dose, change medications,
recurrent episodes, treatment is usually contin- or add an augmenting agent, each requiring sev-
ued indefinitely.43 eral weeks to evaluate its therapeutic effect.47 As-
A widely cited Rand study measuring improve- suming employee compliance with treatment, the
ment in symptoms and overall functioning found length of these evaluation intervals is contingent
that the combination of psychotherapy and antide- on the severity of the patient's illness and idiosyn-
pressant medication proved to be the most effec- cratic response to medication.
tive form of treatment.44 The superiority of com-
bined-modality treatment has been confirmed in
Depression and Managed Care
several subsequent investigations.45 Of particular
importance is the study by Thase et al., which The summary of clinical treatment of depression
reviewed treatment outcomes for 600 depressed must be analyzed against a backdrop of the insur-
patients. The study demonstrates that combined- ance plan screening and paying for the treatment.
modality treatment is clearly superior for more se- Because a substantial portion of employees with
vere cases, while psychotherapy alone is effective diagnosed depression are covered by managed-
for milder cases of major depression. care plans, we highlight the major implications of
As discussed earlier, suicidal thoughts are a both the constraints and opportunities created by
common symptom of major depression. When the those plans.
depression is successfully treated, suicidal think-
ing and intent resolve as well. Evidence shows, not
Origin and benefit of managed care
surprisingly, that inadequate doses of antidepres-
sants may contribute to suicide in depressed pa- The concept of managed care originated as a re-
tients by ineffectively treating the depression.46 action to skyrocketing health-care costs. Managed

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108 Academy of Management Executive August

care appears to offer a reasonable, albeit some- undertreating patients by restricting access to
times frustrating, alternative to fee-for-service more highly trained professionals.54
plans that earlier dominated the marketplace.
When considering only the direct costs of health
Gatekeepers, psychiatrists, and collaboration
care, managed care makes sense, and employers
have generally embraced the concept. For exam- The 1996 RAND study suggests that managed care
ple, before the introduction of managed mental may have degraded the detection and treatment of
health in one company, costs were rising 30 per- depression by its reliance on primary-care doctors
cent per year. After switching to managed care, the to determine which depressed patients will be re-
employer saw direct costs drop by over 40 percent ferred to a psychiatrist.55 Psychiatrists see only 10
in the first year.48 percent of depressed patients in prepaid health
An additional benefit of managed care may re- plans, contrasted with 22 percent in fee-for-service
sult from the shortened hospital stays typical of plans. Furthermore, the study suggests that pri-
these plans. When employees require long-term mary-care doctors underprescribe antidepressants
disability care because of mental illness, their and that nonmedical mental-health providers un-
probability of returning to work is three times derutilize psychiatrists. This underutilization may
higher if they are enrolled in a health maintenance be the consequence of a reluctance to make refer-
organization (HMO).49 We might hypothesize that rals to psychiatrists. Antidepressant treatment of
shortened hospital stays reduce the degree to depressed individuals is significantly more likely
which the depressed employee can sink deeper if the patient is under the care of a psychiatrist.
into a sick role.50 However, this conclusion must be One study reported that only 16 percent of de-
tempered by considering managed care's potential pressed patients under medical care received an-
threats to quality of care. tidepressants, while 60 percent were prescribed
antidepressants in psychiatric care.56

Quality of care The 1996 RAND study suggests that


The quality of patient care under managed-care managed care may have degraded the
plans is a frequently debated issue in the health- detection and treatment of depression by
care community. Many health-insurance plans, es- its reliance on primary-care doctors to
pecially managed-care plans, limit the number of
determine which depressed patients will
mental-health visits per year.5' Since the employ-
be referred to a psychiatrist.
er's goal is to return the depressed employee back
to productive work as quickly as possible, such
caps on visits are questionable if they prevent the The superior outcomes of patients treated by
employee from receiving adequate treatment. psychiatrists may not be without a premium. The
Moreover, because of the potential for suicide, the RAND study estimates that the cost of depression
debate over the true effects of cost containment is treatment by primary-care physicians is about
especially significant and poignant. $1,500 per patient.57 This figure is considerably
Durham claims that quality, as determined by lower than the $3,000-$4,000 per patient typical for
patient outcomes, does not suffer in managed men- psychiatric care alone or in collaboration with
tal-health care.52 According to this report, cost sav- other mental-health specialists. The study sug-
ings are achieved by reducing hospital admissions gests that better outcomes appear to require
and lengths of stay, using providers with less higher direct costs of treatment necessitated by
training-master's-level psychologists and psychi- patients' receiving specialized psychiatric care.
atric nurse practitioners rather than doctoral-level More recent evidence, however, challenges the
psychologists and psychiatrists-and relying on premise that psychiatric care is actually more ex-
group versus individual care. pensive. In an important study conducted at a
As would be expected, less-trained providers are prominent managed mental-health company,
positive in their assessment of managed care, treatment of depression based solely on psychiat-
since they directly benefit from this strategy.53 Doc- ric care proved to be more efficient and signifi-
toral-level providers-M.D.s, Ph.D.s, and Psy.D.s- cantly less expensive than collaborative care in
not surprisingly, are less enthusiastic. These clini- which a psychiatrist provides medication while a
cians allege that managed care produces savings nonpsychiatrist provides psychotherapy.58 A study
by denying needed services, focusing on cost sav- analyzing the actual direct cost differential be-
ings rather than patient care, axnd systematically tween private psychiatric and collaborative treat-

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2000 Kline and Sussman 109

ment confirmed these findings. The results demon- by insurance providers than by the employer and
strated that psychiatric care alone was less employee. This appears to be a case where man-
expensive than collaborative care in all cases and aged care saves money, and someone else pays.
provided better monitoring of the pharmacologic
effects of treatment.59
A study sponsored by Unum Life Insurance Com-
Estimates suggest that the depressed
pany of America also found that limiting access employee who goes untreated costs the
and imposing nonpsychiatric gatekeepers actually company twice what treatment costs
increases costs.60 The data focused on psychiatric per year.
disabilities between 1992 and 1995 at 277 compa-
nies with a minimum of 300 employees. The find-
ings showed that fee-for-service plans, where Prescriptions
gatekeepers typically are absent, had 36 percent
lower claim rates. Furthermore, in companies with The preceding summaries underscore the conflict-
health plans that impose strict annual or lifetime ing pressures managers face in balancing the
limits on outpatient mental-health visits, the claim need for compassion with the need for enhancing
rates soared to almost four times those in compa- shareholder value. In this section, we offer four
nies without such limits. prescriptions for achieving that balance.
Perhaps the most important factor affecting the
relative efficacy of managed care in the treatment
Educate about depression
of depression is the probability of the successful
initial diagnosis. Before a major depression can be Organizations generally and managers specifi-
treated, it must be detected. It may seem unlikely cally should make greater efforts to educate their
that an illness as devastating as major depression workforce about depression, remove the stigma
could go unrecognized, but several studies have of depression from the workplace, and ensure
shown that such diagnostic misses are actually a supportive work environment for depressed
quite commonplace in nonpsychiatrists' offices. employees.
According to the 1989 RAND Corporation study,6' Managers must ensure that depressed employ-
depression goes undiagnosed in about half of de- ees find a supportive work environment unen-
pressed patients by primary-care physicians in cumbered by stigma.64 As a first step, employers
fee-for-service plans. This figure rises to 58 percent must educate both themselves and their work-
when the patient has prepaid care, where primary- force about depression. One of the simplest
care physicians are the principal gatekeepers. In methods is to circulate a newsletter, article, or
these settings, the volume of patients is greater brochure describing the signs, symptoms, and
and time spent with each patient is less. In con- prevalence of major depression. The company
trast, mental-health professionals detect depres- can also organize formal talks or lectures about
sion greater than 78 percent of the time. the disorder. Since antidepressant medications
are so often a part of treatment, these sessions
should be conducted preferably by a psychiatrist
Direct and indirect costs of treating depression
or nurse practitioner knowledgeable about anti-
Regardless of the specific data one cites or policy depressants.
position one supports on the effectiveness of man- These instructional activities accomplish three
aged care in treating depression, one finding is very important goals. First, they give employees
unequivocal. The productivity loss due to depres- sufficient knowledge to recognize depression in
sion is significantly greater than the estimated themselves and coworkers. Second, accurate infor-
cost of treating the illness.62 Estimates suggest that mation about depression diminishes its stigma.
the depressed employee who goes untreated costs Many people believe that the stealth-like nature of
the company twice what treatment costs per year.63 mental illness represents a curtain behind which
Thus, analogous to our earlier discussion of direct may lurk a madman. Such egregious misconcep-
and indirect costs of depression, the direct cost tions are dispelled only by accurate information.
savings achieved under managed care may be The inability to recognize depression and the
outweighed by the increase in indirect costs that stigma attached to it prevent most depressed indi-
managed care creates as a result of poor detection viduals from seeking treatment. Finally, depres-
and inadequate treatment of depression by non- sion-focused education increases the likelihood
psychiatrists. We should point out that the in- that the employees who seek treatment will find a
crease in the indirect cost is less likely to be borne supportive work environment.

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110 Academy of Management Executive August

ing on the specifics of the insurance coverage and


The inability to recognize depression and the availability of an EAP, the stakeholder team
the stigma attached to it prevent most might also include a representative from the insur-
depressed individuals from seeking ance company and a representative of the EAP.

treatment. The purpose of this team is to gather all of the


information required for HR and the employee's
supervisor to devise the accommodation plan.65
The importance of such an environment cannot be For mental illnesses such as major depression, the
overstated. If most of the coworkers of a depressed team must be aware that the accommodation may
employee consider antidepressant medication a not be a one-time event. Rather, because of the
crutch, and the doctor prescribes medication that recurrence and treatment time that so many men-
must be taken during work hours, then the depressed tal illnesses require, the team will often be en-
employee is less likely to take it for fear of being gaged in an evolving process.
discovered and ridiculed. Managers play an impor- Throughout this process, maintaining contact
tant role in creating a supportive work environment. with the employee's psychiatrist is beneficial to all
They set the tone of the work environment and will involved. The manager gains a better understand-
be watched closely by subordinates. A manager who ing of the clinical situation, the employee is as-
behaves as though the depressed employee is shirk- sured that the employer receives accurate informa-
ing his or her responsibilities fosters similar atti- tion, and the physician gains access to information
tudes in the work group. that affords improved evaluation of treatment ef-
Managers must also develop an increased toler- fectiveness and readiness to resume work.
ance for the time course of treatment. Incessant Redesigning workspaces and technological inter-
questioning about when the depressed employee faces are relatively easy accommodations for or-
will return to work could be interpreted as harass- ganizations to conceive and structure. Moreover, the
ment. A more helpful approach is to have periodic inherent rationale for this restructuring usually is
updates from the psychiatrist or the HR profes- understood implicitly when the employee under
sional who is in contact with the treating doctor. In question has a physical disability. Creating accom-
the treatment of the seriously depressed patient, modations for the mentally ill employee, however,
the psychiatrist typically determines the appropri- may not be as implicitly understood or accepted.66
ate date the employee is functionally able to return HR can and should play a lead role in helping all
to work. organizational members accept the reality that de-
Many health plans specify a copay for mental pression is a disease in the same legal and moral
health visits as much as two times or more the sense that diabetes is a disease, and that the or-
copay for nonmental-health medical visits. In- ganization has both a legal and social responsibil-
creasing access means simplifying the process by ity for accommodating the disabled employee.
which the employee moves from recognition of his Finally, given the inherent social stigma associ-
or her problem to treatment and eliminating finan- ated with mental illness, all discussions with and
cial obstacles for that treatment. If the company about the employee must be conducted within the
has an Employee Assistance Program (EAP), the general guidelines of protecting the employee's
employee should have ready access to such ser- rights and maintaining privacy. Medical records,
vices. Of course, there should never be any reluc- performance evaluations, and documentation of
tance to allow employees time off for their first coaching, counseling, or psychotherapy sessions
visit to a mental-health professional. Many indi- should be disclosed only to members of the treat-
viduals look for reasons not to initiate treatment. ment team. Without the guarantee of confidentiality
Employee denial should be recognized as a barrier and protection of employee rights, any managerial
to effective treatment, and management must sup- attempt to help the employee is likely to be futile.
port depressed employees who seek treatment.

Foster awareness of symptoms


Facilitate contact with health professionals
Organizations generally and managers specifically
The human resources department should facilitate should be aware of situations and life circumstances
the initial contact between the depressed em- that may precipitate employee depression and pro-
ployee and a mental health professional and coor- actively establish policies that encourage the report-
dinate the stakeholder team. ing of any indications of harm to self or others.
The stakeholders are the employee, his or her Suicide and violence toward others are often the
manager, and the treatment professional. Depend- result of inadequate detection, recognition, and re-

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2000 Kline and Sussman 111

sponse to either veiled or explicit threats. Manag- provide easier access to professional care.69 The
ers must be alert to any signs of disturbed emo- impetus for the program was the high rate of sui-
tions or thinking in their subordinates and rapidly cide among its 350,000 personnel, accounting for 23
respond with appropriate action-referrals or noti- percent of all deaths. In 1995, the Air Force imple-
fication of security or police. Managers should err mented a suicide prevention program that resulted
on the side of control and intervention and be cer- in a decline of suicides from 16 per 100,000 in 1994
tain of organizational support for such actions. Em- to nine per 100,000 in 1998. That rate was expected
ployees may criticize such actions as overreac- to decline to 2.2 per 100,000 in 1999.70 In comparison,
tions, but it is obviously better to apologize for the rate of suicide in the United States overall is 11
heavy-handed HR policies than to attend funerals to 12 per 100,000.71
and hold traumatic press conferences. The Air Force program relies on military leaders,
The most obvious warning signs of impending medical providers, attorneys, and chaplains to
suicide and other forms of violence are often pro- monitor Air Force personnel for risk factors of de-
vided by employees themselves. Before suicides pression and suicide. When such individuals are
and other violent acts are committed, perpetrators identified, the monitors facilitate access to appro-
frequently mention their disturbed intentions to priate mental-health providers. The Air Force ex-
coworkers and friends. Managers must insist that perience is a splendid example of the effectiveness
coworkers immediately report any suggestions of of organizationally sponsored programs for de-
potential violence made by employees. Responses pression awareness and suicide prevention. The
should be decisive, notifying either the EAP or Air Force now has the lowest suicide rate of all
higher levels of management. Better safe than the military services and a fraction of the rate for
sorry should be the motto of all managers and the the general population.
organization as a whole. The Air Force case represents a situation where
Managers should never underestimate the un- the monitors are employed by the same organiza-
predictability and potential for harm represented tion. Most organizations in both the private and
by irrational thought.67 One variant of major de- public sector, however, rely not only on internal
pression includes such psychotic symptoms as de- monitors but on external ones as well. Thus the
lusions (false beliefs), hallucinations (seeing coordinating and integrating function of HR dis-
things or hearing voices), or irrational behaviors. cussed earlier is even more important where mon-
Moreover, it is not uncommon for depressed indi- itors may be external.
viduals to turn to alcohol or drugs in an attempt to
self-medicate. Alcohol and the class of drugs
Promote effective treatment
known as minor tranquilizers or benzodiazepines
(Valium, Ativan, Xanax) are well known for their Organizations generally and managers specifi-
disinhibiting effects on behavior,68 and can some- cally should understand the direct and indirect
times transform suicidal thoughts into suicidal costs of employee health care, disseminate that
acts. knowledge to subordinate managers, and be pre-
pared to take the lead in promoting health insur-
ance reforms that minimize obstacles to diagnosis
Moreover, it is not uncommon for and appropriate treatment of major depression
depressed individuals to turn to alcohol and other mental disorders.
or drugs in an attempt to self-medicate. Managed care in its current form requires de-
pressed employees to see their primary-care physi-
cian as a first step. This procedure, however, may not
Managers must remain vigilant to the emotional always guarantee treatment. Some individuals are
well-being of their subordinates. Particular note reluctant to report their depression to their regular
should be made of dramatic changes in behavior, doctor because of embarrassment or shame. Compa-
significant personal losses, financial disasters, nies should at least ensure that their health plans
and serious medical problems affecting their em- provide employees the option of calling a mental
ployees. Any of these situations in the life of a health provider directly. Most current managed-care
depressed employee increases the risk of suicide, plans, however, do not permit full coverage for such
and each warrants timely and empathic follow-up access policies. The data we summarized suggest
by the manager. that these changes will pay substantial dividends
The Center for Disease Control recently reported and enable more people experiencing major depres-
on a model program initiated by the U.S. Air Force sion in the workforce to be recognized, treated, and
to reduce the stigma of depression in its ranks and returned to normal productivity.

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112 Academy of Management Executive August

Employers must always be cost-conscious if they understand the implications of any cost that repre-
are to carry out responsibly their duties as stock- sents a nine-cent premium on every wage dollar, as
holders' agents. But social and moral responsibil- do employee health expenditures.
ity cannot be ignored in the process. Business
leaders must be willing to spend more money on
Informed Teamwork
depression education and provide easier access to
treatment for those employees suffering from ma- Clinically depressed people may feel "dread and
jor depression and other mental illnesses. Evi- despair," and believe they are alone and hopeless.
dence is mounting that relaxing access and treat- Yet in reality they need not and should not be
ment barriers can actually save money when the alone. Similarly, executives need not be alone in
indirect costs of depression to the company are their desire to help depressed employees.
considered.72 And, of course, it is socially and mor- Insurance providers, health-care professionals,
ally responsible for the organization to do so. HR staffers, and EAP representatives form the nu-
The distinction between the direct and indirect cleus of a support team that should always be
costs of health care is extremely important for ex- available to executives. As our analysis suggests,
ecutives and managers to understand if economi- however, executives must be informed members of
cally sound decisions about employee health that team, critically assessing treatment options
plans are to be made. Most businesses have tradi- and outcomes.
tionally focused only on direct, out-of-pocket costs, Old habits die hard. Only by the strong, visible,
which significantly understate the true costs of and enlightened support of executives at the high-
employee depression. Using only direct costs, com- est levels can companies implement the necessary
panies are likely to assume that minimizing the changes in mental-health policies and attitudes
costs of employee health can be accomplished by that we have outlined. These changes should pro-
measures that curtail treatment. vide economic benefits to companies by lowering
The largest portion of health-care costs is indirect. total health-care cost, enhancing productivity, and
Cost-control measures that target restricting and improving employee job satisfaction. Applying the
containing treatment are generally counterproduc- four prescriptions will help managers balance the
tive and are likely to increase the indirect and total need for compassion with the need for enhancing
costs of employee health. To lower total cost, busi- shareholder value. Achieving this balance will al-
nesses must be prepared to bear the additional di- low depressed employees and their organizations
rect cost of increased employee access to health to regain their full potential.
care. Only by pursuing a strategy that promotes
treatment and increases direct cost can businesses
lower indirect costs and, in turn, total cost. Endnotes

' Caudron, S., & Hayward, D. R. 1996. HR to the rescue: Teach


downsizing survivors how to thrive. Personnel Journal, 75(1): 46.
Only by pursuing a strategy that 2 The cost of depression in the workplace. 1995. Canadian
Manager, 20(4): 26-27.
promotes treatment and increases direct
3Brady, T. 1997. AMA's mental diagnosis (American Manage-
cost can businesses lower indirect costs ment Association). Management Review, 86(10): 59-63.
and, in turn, total cost. 'Stuart, P., 1992. Tracing workplace problems to hidden dis-
orders. Personnel Journal, 71(6): 82-92.
5Kessler, R., McGonagle, K., Zhao, S., Nelson, C., Hughes, M.,
Eshleman, S., Wittchen, H., & Kendler, K. 1994. Lifetime and
Managed-care companies, like all businesses, are
12-month prevalence of DSM-III-R psychiatric disorders in the
driven by the profit motive. Our review of the litera-
United States. Archives of General Psychiatry, 51(1): 8-19.
ture suggests that using psychiatrists exclusively to 6Hall, R. C., & Wise, M. G. 1995. The clinical and financial
treat those depressed employees who require anti- burden of mood disorders: Cost and outcome. Psychosomatics
depressant medications lowers the cost of treatment. 36: Sll-S18.
7Greenberg, P. F.; Finkelstein, S. N.; & Berndt, E. R. 1995.
If future studies confirm this finding, then managed-
Economic consequences of illness in the workplace. Sloan Man-
care companies will quickly modify their pattern of agement Review, 36(4): 26-39.
professional resource utilization to realize these po- 8 Wells, K. B., Sturm, R., Sherbourne, C. D., & Meredith, L. S.
tential savings. The managed-care industry, how- 1996. Caring for depression: A RAND study. Cambridge, MA:
ever, will be unlikely to voluntarily pass on these Harvard University Press.
9 Americans with Disabilities Act of 1990, 42 U.S.C.A. ?12 101 et
savings to their clients. Only business executives
seq. (West, 1993).
who are knowledgeable about health-care cost struc-
10 Diagnostic and statistical manual (DSM) of mental disorders
ture will successfully negotiate the sharing of those (4th ed.). 1994. Washington: American Psychiatric Association.
potential savings. It behooves executives to clearly 1' DSM, op. cit.

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2000 Kline and Sussman 113

12 Jefferson, J. W., & Greist, J. H. 1994. Mood disorders. In R. E. 33 Ghosh, T. B., & Victor, B. S. 1994. Suicide. In Hales et. al.
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13 Symptoms represent the subjective experiences of an indi- stressors, and the life cycle. American Journal of Psychiatry, 148:
vidual, while signs represent the objective observations of the 524-527.
physician. Fatigue is a symptom, because an individual feels it. 36 Isometsa, E. T., Henriksson, M. M., Aro, H. M., Heikkinen,
Psychomotor retardation, in contrast, is a sign, because the M. E., Kuoppasalmi, K. I., & Lonnqvist, J. K. 1994. Suicide in major
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14 Breuer, N. L. 1995. Revealing the dark secret of clinical csson, G., Boethius, G., & Bergman, U. 1992. Low levels of anti-
depression. Personnel Journal, 74(4): 121-127. depressant prescription for people who later commit suicide: 15
15 Turner, S. 1995. Identifying depression in the workplace. years of experience from a population-based drug database in
HRMagazine, 40(10): 82-84. Sweden. Acta Psychiatrica Scandinavica, 85(6): 444-448.
16 Real, T. 1998. I don't want to talk about it: Overcoming the 37 Thompson, J. 1995. Psychiatric disorders, workplace vio-
secret legacy of male depression. New York: Fireside. lence, and The Americans with Disabilities Act. Hamline Law
17 Kessler, R., McGonagle, K., Zhao, S., Nelson, C., Hughes, M., Review, Fall: 25-79.
Eshleman, S., Wittchen, H., & Kendler, K. 1994. Lifetime and 38Griffin, R. W., O'Leary-Kelly, A., & Collins, J. (Eds.) 1998.
12-month prevalence of DSM-III-R psychiatric disorders in the Dysfunctional behavior in organizations, Part A: Violent and
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18 Episodes of major depression occur also in bipolar disor- 39Feldman, T. B., & Johnson, P. W. 1994. Violence in the work-
der, which formerly was called manic-depressive disorder and place: a preliminary report on a workplace violence database.
includes both manic and depressive episodes. The terminology Unpublished paper: August 10. This study was reported in
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denotes the specific periods of depression that occur in victims 40 Zugelder et al., op. cit.
of major depression and bipolar disorder. When there is no 41 Jefferson & Greist, op. cit.
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114 Academy of Management Executive August

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Joseph Kline, Jr., is a board-certi- Lyle Sussman is a professor of


fied psychiatrist at NorthKey management at the University of
Community Care in Covington, Louisville. His research on com-
KY. He received his Ph.D. in munication, employee coaching
physiology and biophysics, and and counseling, and executive
M.D., and an M.B.A. with distinc- development has appeared in
tion, all from the University of leading academic and practitio-
Louisville. He practices commu- ner joumals. He has conducted
nity psychiatry and conducts re- seminars in Canada, Mexico, Eu-
search on mental illness in the rope, and the Far East. His ap-
workplace, difficult employees, plied management books, Smart
bumout, and the application of Moves and Smart Moves for Peo-
the theory of constraints to ple in Charge, have been trans-
health-care organizations. Con- lated into 13 languages. Contact:
tact: jklineOl@aol.com. lylesussman@louisville.edu.

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