No matter their official line, the uncomfortable truth is that some businesses and business owners only truly care about their bottom line. Deep down, they still feel that employees’ mental health is their own problem, and none of it should ever affect productivity. But that is antiquated and unrealistic.
Recent research from Deloitte highlights just how closely employee mental health is linked to organisational success. The study found that for every £1 spent on workplace mental health initiatives, businesses see an average return of £4.70 – thanks to increased productivity, fewer absences, and better staff retention.
The Cost of Poor Mental Health
Poor mental health costs UK employers a staggering £51 billion each year. While this is down from £55 billion in 2021, it’s still a big jump from £45 billion in 2019. The biggest culprit? Presenteeism – when employees come to work despite being unwell and unable to perform at their best. This alone costs businesses £24 billion annually.
Burnout and Mental Health Challenges on the Rise
Mental health issues among employees are becoming more common. A worrying 63% of workers report at least one symptom of burnout, up from 51% in 2021. The biggest stressors include:
• The rising cost of living (60%)
• Personal and family financial pressures (46%)
• Job security concerns (22%)
For working parents, the challenges are even greater. Nearly half (46%) worry about their children’s mental health—something that’s costing UK businesses £8 billion a year in lost productivity, absenteeism, and staff turnover.
• 10% of working parents take up to five days off annually to support their children.
• 1 in 100 has left their job altogether due to the strain of balancing work and caregiving.
• Despite these pressures, many parents hesitate to ask their employers for support, opting instead for external help.
Why Employers Need to Act
Deloitte’s research makes it clear: investing in mental health isn’t just the right thing to do – it’s a smart business move. Companies that take proactive steps, such as fostering an open culture, providing education, and implementing strong mental health policies, see the best returns on investment.
Elizabeth Hampson, a Deloitte partner and lead author of the report, says, “The business case for prioritising mental health in the workplace is clearer than ever. Employers who actively support their teams, including working parents, can reduce absenteeism, presenteeism, and turnover, all while fostering a healthier, more engaged workforce.”
Steps Employers Can Take
According to Deloitte, to improve workplace well-being and maximise the benefits of mental health initiatives, businesses should:
• Make mental health a Core part of company culture – Raise awareness and integrate mental health support into everyday workplace practices.
• Offer flexible working options – Help employees, especially parents, better manage their work and personal commitments.
• Provide access to wellbeing resources – Ensure staff have the necessary tools and support, such as employee assistance programmes.
• Encourage open conversations – Create a workplacewhere talking about mental health is normal and encouraged.
With rising costs linked to poor mental health and increasing rates of burnout, businesses can’t afford to ignore this issue. Prioritising employee wellbeing isn’t just about doing the right thing—it’s also a strategic decision that improves performance and boosts the bottom line.
The evidence is clear: supporting mental health in the workplace leads to happier employees and a resilient business.
The insights presented in Deloitte’s report are derived from a comprehensive survey conducted by YouGov on behalf of Deloitte, encompassing 3,156 working adults, including 1,834 working parents.
Additionally, Deloitte’s analysis includes a review of 26 studies published since 2011, which report financial returns on workplace wellbeing interventions, culminating in the average return on investment figure of £4.70.
