Investing in mental health = better business performance, says Warwick Business School
Workplace mental health issues are estimated to cost UK employers £56 billion a year in sickness absences, employee turnover, and presenteeism (when employees are working when ill, or are routinely working beyond their contracted hours). As well as firm-level impacts, these issues have serious individual level consequences, with around 300,000 UK employees leaving their jobs every year because of a mental health problem [DWP: Stevenson/Farmer review of mental health and employers, 2017].
The Enterprise Research Centre (ERC) at Warwick University has been tracking UK employer experiences of workplace mental health with an annual survey since before the pandemic, uncovering some striking insights. For example, while the proportion of firms reporting some level of mental health related absence is currently stable at around 27%, presenteeism has nearly doubled over the past two years and is now reported by around 37% of firms. This may be related to hybrid working, which has also increased significantly since the pandemic. Around 30% of employers reported some level of remote working in 2024, compared to only around 11% before the pandemic.
Current research focusing on the effects of remote working suggests that working at home may make it more difficult for employees to psychologically detach from work. There is little doubt that it has also normalised working while unwell, as employees can be present at meetings without fear of infecting colleagues. This is a potential problem as research has linked presenteeism with stress and burnout in individuals, which inevitably impacts on firm-level performance too. As hybrid working continues to grow, employers will need to ensure that they are encouraging a good work-life balance for those working remotely.
More broadly, while nearly 80 per cent of employers believe they have a responsibility to address mental health issues in the workplace, the ERC’s data points to something of an ‘intention-action’ gap, with only around 56% offering mental health initiatives. We can also see a strong reliance on low-cost and no-cost practices, such as encouraging open conversations about mental health, which is reported by more than 90% of firms.
While such initiatives are an important element of workplace programmes to support mental health, they rely on line managers to deliver them. Yet only around half of employers surveyed in 2024 offered any training in workplace mental health to their line managers, which suggests that many may be relying on untrained or under-trained line managers for their mental health support programmes. In fact, only 22% of firms report that they have a budget for mental health initiatives.
We know that employers who have adopted initiatives to support mental health in the workplace often report improved firm-level outcomes. For example, in 2023, 53 per cent said that overall business performance had improved. In light of the apparently inexorable rise in workplace mental health issues, training line managers in dealing with them may be a wise and timely investment.
Dr Maria Wishart, Research Fellow, Enterprise Research Centre, Warwick Business School https://www.enterpriseresearch.ac.uk/themes/mental-health/