The cost of poor mental health at work reaches £28 billion in 2022

The cost of poor mental health at work reaches £28 billion in 2022

New figures from AXA UK and Centre for Business and Economic Research (Cebr) point to the vast financial costs to employers caused by stress, burnout and poor mental health.

The AXA Mind Health Study involved a survey of 30,000 people from 16 countries in Europe, Asia and the Americas. The UK, alongside the USA, was found to have the largest proportion of employees struggling with mental health issues: 21% were in a state of ‘emotional distress’; 26% had an ‘absence of positive wellbeing’. Compared with the previous year, there had also been an improvement in the numbers of people with very good mental health (up from 18 to 23%), pointing to a widening gap in experience between groups of employees.

Cost consequences

Previous studies have suggested that burnout leads to an increase in the number of sick days by 21%. At the same time, stress in general has been found to lead to reductions in productivity and performance, as well as an increase in healthcare costs for organisations.

The AXA/Cebr study also showed differences in terms of the level of issues by sector. Public sector workers are more likely to experience work-related stress; health and social sectors are more likely to feel worried about their job, while higher earners are more likely to experience work-related stress and low moods. Just over half of workers surveyed felt their company provided good support to employees on mental health.

Looking to the positive

EAPA UK chair, Karl Bennett said: “The key stat in the report is not around the costs to employers but relates to the other side of the story. Employees who feel they are being actively supported with their mental health at work are twice as likely to be ‘happy’, and almost three and a half times more likely to be ‘flourishing’.

“Rather than seeing employee issues around mental health as just a source of rising costs — people as a problem and support as a cost-reduction measure — organisations need to think in terms of the positives of a healthy workplace culture, providing a better experience, demonstrating a genuine commitment and care for people, which all leads to benefits for everyone involved with an organisation.”