In today’s fast-paced and highly competitive business world, the importance of employee well-being cannot be overstated. Poor mental health not only affects individuals but also carries significant financial implications for UK businesses. In this blog, we will explore the costs of poor mental health per employee, the impact of absenteeism and presenteeism on the UK economy, and conclude with a five-step process on how businesses can effectively improve well-being and personal development among their employees.
The High Cost of Poor Mental Health
The cost of poor mental health in the workplace is a pressing concern for UK businesses. According to the Stevenson/Farmer Review in 2017, poor mental health costs UK employers between £33 billion and £42 billion annually. This cost arises from various factors, including absenteeism, presenteeism, and reduced productivity.
- Absenteeism: The Silent Expense
Absenteeism, the practice of employees being absent from work due to mental health issues, is a major contributor to the cost of poor mental health in businesses. When employees take days off for reasons related to mental health, it directly impacts productivity. In the UK, the average cost of absenteeism per employee ranges from £1,205 to £1,560 annually, depending on the industry.
- Presenteeism: A Stealthy Cost
Presenteeism, on the other hand, is when employees come to work despite feeling unwell, including mentally unwell. This can be just as costly as absenteeism, if not more so. It not only results in reduced productivity but also contributes to a toxic work environment. The cost of presenteeism per employee in the UK ranges from £605 to £710 annually.
The Impact on the UK Economy
The consequences of poor mental health in the workplace extend beyond individual businesses and impact the broader UK economy. In 2019, poor mental health in the UK workforce cost the economy approximately £45 billion in lost productivity, according to Deloitte.
A Five-Step Process for Improving Well-being and Personal Development
Recognizing the high costs of poor mental health, UK businesses should prioritize well-being as an essential part of their corporate culture. Here’s a five-step process to effectively improve well-being and personal development within a business:
- Create a Supportive Work Environment: Foster an open and inclusive atmosphere where employees feel comfortable discussing their mental health concerns. Implement policies and practices that reduce stigma and discrimination related to mental health.
- Mental Health Training: Provide mental health awareness and training for managers and employees. Encourage early intervention and equip individuals with the tools to manage their mental health effectively.
- Employee Assistance Programs (EAPs): Offer EAPs that provide confidential counseling services, resources, and support for employees experiencing mental health challenges.
- Flexible Work Arrangements: Implement flexible work arrangements, such as remote work options and flexible hours, to help employees manage their work-life balance effectively.
- Personal Development Initiatives: Invest in personal development initiatives, including training, mentorship programs, and opportunities for skill-building. Support employees in setting and achieving personal and professional goals.
Conclusion
Poor mental health takes a toll on the well-being of employees and the financial health of UK businesses. The costs associated with absenteeism, presenteeism, and reduced productivity are substantial. To address this issue, it’s imperative for businesses to prioritize the well-being of their employees by creating a supportive environment and implementing strategies that promote personal development. By doing so, not only will businesses improve their bottom line, but they will also contribute to a happier, healthier, and more productive workforce, ultimately benefitting the entire UK economy.