The return on investment of positive staff mental and physical health

Across the UK 41 % of employees have experienced poor mental health where work was a contributing factor, 51 % of poor mental health caused by work was due to pressure and some 300,000 people lose their jobs each year because of long term mental health problems. 

Reporting also shows that men are more likely to keep work-related mental health problems to themselves and that whilst employees feel supported by colleagues and managers, they do not always feel HR departments and CEOs and boards are as considerate of employee mental wellbeing. 

62% of managers said that, at times, they have had to put the interest of the organisation above the wellbeing of their colleagues. It is projected that as a percentage of the total number of instances of poor health at work, mental health problems will soon surpass other work‐related illnesses such as musculoskeletal disorders, respiratory diseases, cancer, skin issues, and hearing damage. 

Research shows there is a large annual cost to employers in the UK of mental ill health of between £33 billion and £42 billion. Over half of the cost coming from presenteeism, when individuals are less productive due to poor mental health in work, with additional costs from sickness absence and staff turnover. UK average costs per employee are £1,716 and £1,652 for the public sector and private sector respectively, with higher costs again per employee in sectors such as finance, insurance and real estate. 

More positively the estimated return on investment of workplace mental health interventions by employers is £5 for every £1 invested, with interventions that achieve even higher returns (up to 11:1) tending to combine a focus on prevention and building employee resilience with organisation wide initiatives supporting large numbers of employees and using tailored support for those most at risk. 

Also, positively the number of employees who feel that their organisation supports their mental health is on the rise, indicating greater awareness of the issues and increased efficacy of the efforts to address them. The COVID-19 pandemic has acted as a catalyst to elevate mental health on a parity with physical health, leading to growing rates of adoption of the Mental Health at Work Commitment alongside the Mental Health Charter. The continued popularity of the Investors in People award, which emphasises the link between employee mental wellbeing and business productivity, alongside the more recent publication of BS7600O Valuing People, the first of a new suite of human capital management standards, also highlight the continuing evolution in the collective expectation of what employers should do to support the mental health of their workers. 

Consequently, the CIPD People Managers’ Guide to Mental Health recommends as part of building individual resilience that employers lead by example and adopt the NHS five steps to mental well-being, namely Connect with other people, Be Physically Active, Learn a New Skill, Give to others and Pay attention to the present moment (mindfulness). 

Many organisations are now finding that actively providing for mental health, and doing so in a way that incorporates the NHS five steps, is increasingly part of the ‘employee value proposition (EPV)’, vital for recruiting and retaining quality and loyal staff. The difficulties in securing and maintaining appropriate staffing levels is a significant issue that has had a spotlight shone on it throughout the COVID-19 pandemic. Many organisations continue to experience employee shortages, something compounded by the ‘great resignation’. 

In summary business are experiencing higher costs and reduced efficiency due to employee mental health issues, and employees increasingly expect their employers to have active mental and physical health initiatives in place, with direct implications on talent recruitment and retention. There is a need therefore for organisations to implement bespoke programmes of purposeful activities, that are integrated within wider initiatives and aligned with the NHS five steps to mental well-being, to promote tangible, measurable and sustainable improvements to mental and physical health.