# Economic gains from hypothetical improvements in the psychosocial work environment: A cohort study of 71 207 workers in Denmark

## TL;DR

Improving workers' psychosocial work environment could lead to significant annual savings, mainly from reduced sick leave.

## Contribution

This study quantifies the economic benefits of hypothetical improvements in psychosocial work environments using a large Danish cohort.

## Key findings

- A hypothetical improvement in psychosocial work environment could save €1685 per worker annually.
- Savings were mainly due to reduced sickness absence, especially for women and public sector workers.
- Factors like social support and leadership quality contributed most to the economic gains.

## Abstract

There is increasing interest in the economic effects of improving working conditions, however, evidence is sparse. This study aims to estimate the economic effects of hypothetical improvements in the psychosocial work environment (PSWE) experienced by Danish workers.

We included 71 207 workers, reporting information on their psychosocial working conditions in the “Work Environment and Health in Denmark” survey and linked these workers to population-based register data. We used the parametric g-formula method to estimate the economic effects of hypothetical improvements of the general PSWE, in terms of costs related to sickness absence and healthcare use. We further examined which PSWE factors contributed most to the economic effects.

A hypothetical improvement of the PSWE – from the least to the most desirable situation – resulted in an annual gain of €1685 [95% confidence interval (CI) €1234–2135] per worker. When analyzing an improvement from the observed to the most desirable situation, the gain became weaker (€305, 95% CI €134–476). Gains were largely driven by reductions in sickness absence and were larger for women than men and for public sector workers than private sector workers. The PSWE factors with the largest contribution were eliminations of threats of violence and improvements in quality of leadership and social support from colleagues (least to most desirable) and improvements in social support from colleagues, influence at work and quality of leadership (observed to most desirable), respectively.

Hypothetical improvements in the PSWE resulted in substantial economic gains, mostly driven by savings related to sickness absence.