Mental health and employers: The business case to support employees and, in particular, working parents
By Elizabeth Hampson, Partner and lead for Deloitte’s Health Equity Institute Europe, and Maria João Cruz, Manager, Deloitte
This week, 13th to 19th May 2024, is Mental Health Awareness Week (MHAW), an annual event led by the Mental Health Foundation, to raise awareness, reduce stigma and promote good mental health for all.1 This year MHAW coincides with the launch of the fourth edition of our report series - ‘Mental health and employers: the case for investment’. Our 2024 report refreshes our findings on: the costs for employers of poor mental health in the workplace; the business case for investing in a mentally healthy workplace; and recommended actions for employers. Furthermore, given that children and young people’s mental health is an important focus for Deloitte’s Health Equity Institute, with one in five children and young people having a probable mental health disorder, we have also examined how concerns over children and young people’s mental health impacts working parents and what this means for employers.2 Our blog this week shares the key findings from our report.
Why employers should strive for a mentally healthy workplace
For most people, work is a significant part of life, where they invest significant time and earn a livelihood. So, it’s not surprising that work can affect mental health and wellbeing, and poor mental health can affect work performance.
In October 2023, we commissioned YouGov to conduct a survey of 3,156 working adults across the UK. We found that people’s perception of their own mental health has improved compared to 2021 but has not yet returned to pre-pandemic levels (see Figure 1).
Figure 1. Mental health perception of UK workers: Pre-pandemic – October 2023
Despite this more positive perception of mental health overall:
- 24 per cent of survey respondents say they have been diagnosed with a mental health condition such as depression or anxiety
- 63 per cent of respondents reported experiencing at least one characteristic of burnout (feelings of exhaustion, mental distance related to their job, or decline in performance at work), up from 51 per cent of respondents in 2021.
The top two concerns affecting the mental health of working adults are the increasing cost of living and personal/family finances, followed by job security, ongoing personal mental health concerns, job performance and the mental health of their children (see Figure 2).
Figure 2. Worries expressed by UK working adults
Sixteen per cent of our respondents said they were planning to leave their jobs in the next 12 months (three per cent higher than in 2021) and 11 per cent had left their jobs in the previous 12 months (four per cent fewer than in 2021). Fifty-nine per cent of those planning to leave their job said it was related to personal mental health and wellbeing-related issues. Moreover, one in 100 working parents who had left their job said it was due entirely to the mental health and wellbeing of a child.
For working parents, balancing work and parenting responsibilities is difficult enough, and having concerns over your child’s mental health can make this even more challenging, something many of us working parents at Deloitte are acutely aware of. Time constraints, feelings of guilt, navigating financial pressures and setting boundaries between work and family life all contribute to these difficulties. Indeed, 46 per cent of working parents in our survey expressed concern for their children’s mental health and half say this impacts their work performance.
Poor mental health in the workplace: the cost to employers
Our report estimates the annual cost of poor mental health to UK employers as £51 billion per annum, a decrease from the £55 billion estimate in our 2021 report.3 This combines costs of absenteeism, presenteeism and turnover, with presenteeism remaining the highest contributor to these costs (see Figure 3). Our estimates also show that the poor mental health of younger workers, particularly those aged 25 to 34, has the biggest impact on costs.
Figure 3. Annual costs due to absenteeism, presenteeism and labour turnover
This year we also calculated the impact of concerns over the mental health of children and young people, which we estimate cost employers around £8.3 billion annually in addition to the direct employee mental health-related costs. Overall, the message is clear: poor mental health is costly for employers, but employers can mitigate costs and improve productivity by investing in workplace wellbeing.
Supporting employees’ mental health is not only the right thing to do, but employees expect it
Having support for mental health and wellbeing at the centre of organisational culture helps to build trust and foster a more positive work environment, which can have a positive impact on talent retention and attraction, as well as boost company brand recognition.4,5While many employees expect their employer to support their mental wellbeing, 44 per cent still don’t feel supported.
Many working parents are seeking external sources of support rather than approaching their employers, with only 19 per cent of working parents saying they turn to their employer for support.
The case for investment
Having a mentally healthy workplace is not just good for people, it’s good for business, but employers need reliable evidence to make informed decisions about how to invest in workplace mental health programmes with positive returns. Our review of studies that look at the return on investment of mental health interventions in the workplace shows employers can generate an average return of £4.70 for every £1 invested in improving workplace mental health, with the size of the return varying with the nature of the intervention.
Actions to foster a mentally thriving workplace and realise returns on investment
Fostering a workplace that promotes and protects mental health of employees requires a number of actions including:
- Leadership - set the tone at the top and put mental health concerns high on the agenda and commit to tackle the stigma, considering special needs and requirements of working parents. Leaders can sign up to the UK Mental Health at Work Commitment or the Global Business Collaboration for Better Workplace Mental Health pledge. Many, including Deloitte, have already done so.
- Monitoring and raising awareness - monitor regularly the impact of work on their employees' mental health, identifying stressors and particular difficulties for high-risk groups including working parents, and create a positive, well-designed work environment that protects employees' mental health and wellbeing.
- Changing culture and increasing support - have a portfolio of support measures (such as digital tools and community networks) that meet the needs of different employees, including ones designed specifically to support working parents.
Conclusion
This MHAW we want to highlight the importance of a mentally healthy workplace. Our report aims to inspire employers to take stock of mental health in the workplace and act by making a financially-sound investment in supporting their employees’ mental health and wellbeing. Whilst there is still some way to go, it is heartening to see improvements in worker’s wellbeing and a £4 billion reduction in the cost of mental health since 2021, this gives us confidence that that actions to support employee wellbeing can lead to measurable impact. For more details please see the full report.
Examples of free resources that can help working families.
- Best ways to support working parents - Mental Health At Work & Kooth
- Mental health support for parents and carers – Place2Be
- Advice for Parents & Carers - Working Families
- Parents' Toolkit - BBC Bitesize
- Children's mental health - Every Mind Matters - NHS (www.nhs.uk)
- Mental Health Charity For Children And Young People | YoungMinds
____________________________________________________________________
[i] Mental Health Awareness Week | Mental Health Foundation
[ii] Mental Health of Children and Young People in England, 2023 - wave 4 follow up to the 2017 survey - NHS England Digital
[iii] Mental health and employers: the case for investment - pandemic and beyond | Deloitte UK
[iv] The Rise Of Corporate Wellness To Support Employee Retention (forbes.com)
[v] The Holistic Model of Labour Retention: The Impact of Workplace Wellbeing Factors on Employee Retention (repec.org)
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