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AnxietyDepressionStressMental health conditionsLatest News

Poor mental health costing £51bn, fuelled by growing presenteeism

by Nic Paton 20 May 2024
by Nic Paton 20 May 2024 Presenteeism is now costing employers around £24bn annually, the Deloitte report has argued
Presenteeism is now costing employers around £24bn annually, the Deloitte report has argued

The cost to employers of poor mental health is now £51bn a year, research has calculated, a decline on what it was in 2021 but still higher than pre-pandemic.

The research from consultancy Deloitte concluded the cost of mental health was now lower than the £55bn reported in 2021, but still higher than the £45bn calculated in 2019.

Presenteeism was the largest contributor, which was costing employers around £24bn annually.

More than half (58%) of the 3,156 working adults polled said their mental wellbeing was “good” or “excellent”. There had also been improvements for younger people, with nearly two-thirds (64%) of 18-24-year-olds now reporting that overall their mental health was good, an increase from 53% in 2022.

The report examined the impact of children’s poor mental health on working parents for the first time. According to the survey (which included 1,834 working parents), 46% were concerned about their children’s mental health. Half of those concerned said this affected their performance at work.

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The study also looked at the extent of burnout in the workplace. Nearly two-thirds of respondents (63%) said they were exhibiting at least one sign of burnout, such as feelings of exhaustion, mental distance from their job, or a decline in performance at work. This was an increase from 51% in the previous survey.

Given the implications of burnout on job performance and productivity, as well as employees’ overall wellbeing, there is a clear case for employers to address this issue, Deloitte argued.

Overall, the main concerns affecting the mental health of working adults were the increasing cost of living (60%), personal/family finances (46%), and job security (22%).

Working parents were most concerned about the rising cost of living (65%), alongside family finances (55%) and about the mental health of their children (29%).

Finally, the study carried out a return-on-investment analysis of employee mental health interventions. This concluded that, on average, for every £1 spent on supporting their people’s mental health, employers get nearly £4.70 back on their investment in improved productivity.

Elizabeth Hampson, Deloitte partner and author of the research, said: “Employers are increasingly putting mental health and wellbeing at the heart of their business and providing effective mental health support for their people.

“The benefits of providing targeted support for employees are clear and compelling. Employers need concrete evidence to make informed decisions about how to invest in workplace mental health programmes and maximise benefits, including financial returns,” she added.

Separately, nearly a third of people calling in sick because of poor mental health (32%) give a different reason to their employer for being off, according to research by Nuffield Health.

Its Healthier Nation Index also found employees would like employers to allow them to take time for more physical activity.

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Nearly half (46%) of the 8,000 adults polled said lack of time because of work acted as a barrier to exercise, with 43% stating more time should be put aside for it.

More than half (56%) went to work despite poor mental health – down 7% from last year’s similar poll (63%).

Nic Paton

Nic Paton is consultant editor at Personnel Today. One of the country's foremost workplace health journalists, Nic has written for Personnel Today and Occupational Health & Wellbeing since 2001, and edited the magazine from 2018.

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