Mental health is one of the biggest issues facing employers, and costs the UK economy £102 billion in 2023, according to Axa’s Mind health study, published in March 2024. There is a strong link between poor mental health and high absence rates, and this filters through into low productivity and morale. Conversely, organisations that can support employees with any issues they may have are less likely to experience this.
It is no surprise, then, that a number of employers are planning to increase coverage in healthcare benefits, including increasing spending on mental wellbeing.
Workbuzz’s State of employee engagement report , published in OCtober 2024, identifies two groups that are facing particular wellbeing challenges. These are younger workers, who score lowest on wellbeing measures such as anxiety and stress, and middle managers, who find themselves caught between operational demands and managing increasingly diverse teams.
What should be included in a mental wellbeing strategy?
The first step for any employer is to review its current offering, especially if there are any factors which may be causing unnecessary stress such as long hours, tight deadlines or insufficient resources. Offering flexibility around working hours and location can help employees better manage their home lives. Some organisations are now trialling four-day weeks in a bid to boost both productivity and employee wellbeing.
A mental health audit is a good way of seeing who needs support, and what help is required. Employers should also develop a mental health policy, outlining what mental health is and the support that is available. It should also include any support an employee can expect when they return to work after a mental health-related absence.
Training line managers to spot the signs of mental ill-health is vital, because this can lead to early intervention which may prevent employees becoming unwell. It is also important that there is a culture within the organisation where people feel able to raise any issues they may have with line managers or senior leadership.
What benefits could be offered in this area?
Employers can facilitate access to mental health support through employee assistance programmes (EAPs). These can be offered to staff on a standalone basis or through private medical insurance schemes, group income protection policies or critical illness insurance. Many health cash plans will also provide access to EAPs, and employers can also arrange access to external psychological support.
Employers can also provide benefits that can help reduce stress and improve physical and mental health. These could include gym memberships or mindfulness apps. Providing fresh fruit in the workplace can also help people have a balanced diet, which forms part of a healthy lifestyle.
What are the costs involved?
Reviewing an organisation’s processes does not need to be costly, and health cash plans or EAPs remain affordable. Private medical insurance or critical illness policies are more expensive, but many organisations may already have these in place and are failing to make use of the EAP provision.
The mental health charity Mind also has free resources which can be shared with managers and employees, including guidance for managers on how to support staff experiencing a mental health problem.
Deloitte’s Mental health and employers: refreshing the case for investment report, published in 2020, suggests that for every £1 invested in mental health initiatives, employers see a return of up to £5, through improved performance and reduced absence rates.
What are the current market trends in this area?
There is an ongoing a shift from old-school, top-down leadership to more empathetic, people-centred approaches, with more of an emphasis on emotional intelligence.
There is also a growing trend towards the use of artificial intelligence (AI) in helping to develop tailored workplace wellbeing programmes, focusing in on elements such as stress management, nutrition, financial education and mental health. Financial stress is a particular concern; PWC’s 2024 Global workforce hopes and fears survey, published in June 2024, found 52% of employees report this as an issue.
Who are the main providers of mental wellbeing support and where can employers gain more information?
EAPs can be accessed directly through organisations such as Health Assured, or through insurance companies, health cash plan providers or private medical providers such as Axa or Bupa.
Many employers will offer access to these through employee benefits providers such as Howden or Vivup Perkbox.
Organisations such as Onebright can provide private mental health assessments and treatment, either directly or through insurers.
Platforms such as Nudge are also being used by employers to help provide personalised financial support.
Mental Health First Aid England or St John Ambulance can train employees to spot the signs of people who may be experiencing poor mental health.
Finally, law firms, such as Forbes, can help organisations develop mental health policies, ensuring these are compliant with legislation.
