positive mental health

Poor mental health causes a massive loss to UK businesses, primarily through a reduction in employee effectiveness.

Total Cost to UK Employers

The overall cost to UK employers has consistently risen in recent years, demonstrating the growing severity of the issue:

• The estimated annual cost of poor employee mental health to UK employers is approximately £51 billion(Deloitte, recent data). This is up from earlier figures, highlighting a worsening trend. Source: Deloitte (various reports, including 2022/2023 figures).

• The cost of mental ill health to the UK economy as a whole is even higher, estimated at least £117.9 billion annually (Mental Health Foundation/LSE).

Cost Breakdown: Presenteeism vs. Absenteeism

Productivity loss from employees being present but unwell (Presenteeism) is by far the largest component of the cost.

Presenteeism is estimated to cost UK employers over three times more than absenteeism due to poor mental health (Deloitte figures).

• Work-related stress, depression, or anxiety resulted in 17.1 million working days lost in the UK (HSE, 2022/23 data).

Return on Investment (ROI)

Investing in employee mental health is shown to be highly cost-effective and is a clear route to improving productivity.

• For every £1 spent by employers on supporting the mental health and well-being of their workforce, they receive an average return of approximately £4.70 in increased productivity, reduced staff turnover, and lower absence costs. Source: Deloitte.

The Toll of Stress and Loss of Function

The most direct effect of poor mental health is the loss of cognitive ability and energy needed for the job:

• 79% of UK workers report experiencing work-related stress on a regular basis, and for 39% of employees, this stress is significant enough to affect their work performance (People Insight, 2024).

• When struggling with mental health issues, 89% of employees report that it negatively impacts their working life, stopping them from performing to the best of their ability (Mind/Health Shield).

• Employees who feel their job has a negative impact on their mental health are significantly less likely to be satisfied in their role (37% vs. 93%) and less willing to go above and beyond (39% vs. 69%) (CIPD).

The Link to Leaving a Job

Mental health issues are now a key factor in decisions to leave a role, leading to high turnover.

• 61% of UK employees who left a job in the last year or plan to leave in the next 12 months cited poor mental health as a factor in their decision (Spill, 2023).

• Employees who feel their mental health is negatively affected by their work are over twice as likely to quit(34% vs. 14%) compared to those who feel positively affected (CIPD).

The Role of Workplace Culture and Support

How an employer addresses mental health directly affects an employee's loyalty, engagement, and willingness to seek help.

• 57% of people say that if their employer proactively supported their mental well-being, it would help them to feel more loyal, be more productive, and take less time off work (Health Shield).

• Only 13% of employees feel comfortable discussing their mental health in the workplace, indicating a major cultural barrier to getting needed support (Mind).

• Employees who have supportive managers are 77% more likely to say they are mentally healthy compared to those without supportive managers (MetLife). This managerial support is a critical link between the employee and the company's resources.