Abstract

In today’s business world, the focus of many organizations is heavily skewed toward tangible assets – including profitability, revenue growth, cash-flow- as the primary drivers of success. However, another equally important area is frequently overlooked and deserves more attention, namely, employee mental health.The main aim of this review is to explore and better understand the ripple effects of employee’s mental states on firms’ outcomes. To meet this objective, we followed a specific methodological approach, initiating our research by scrutinizing the most recent and relevant scientific publications in several academic literature databases, in order to delve into the various ways in which mental health states can shape employee’s overall work functioning and firms’ outcomes, including productivity, performance, turnover rates, absenteeism, and much more. Following our analysis, we have concluded that employee’s mental health state isn’t just a personal matter, but it’s, on contrary, a strategic imperative for thriving businesses. Nurturing mentally strong minds in the workplace is a must, to evade substantial losses, and to prevent the deepening of mental illness.

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