The mental health crisis is hard to ignore.
It’s affecting lives on every level, from personal well-being to physical health and financial stability.
A growing number of factors are contributing to ill-health:
The impact on employees and businesses alike is profound, influencing productivity, retention, and overall success.
The question is no longer if we need to act, but how we can create workplaces that genuinely support mental and emotional well-being. Because when employees thrive, businesses do too.
The Price of Employee mental health issues
Globally
The World Health Organization (WHO) reports that mental health issues in the workplace result in a $1 trillion (£747 billion) loss in productivity each year.
In the UK
In the UK alone, the cost of poor mental health for employers was already estimated at £45 billion annually in 2019 - a figure that has only risen in recent years.
The Silent Drain of Disengagement
While quiet quitting - when employees disengage and do the bare minimum - may be harder to measure, its impact is no less significant. Research consistently shows that engaged and happy employees take fewer sick days, are more productive, and contribute to innovation and collaboration. On the other hand, disengaged employees cost businesses heavily.
A McKinsey study estimates that the financial burden of disengagement equates to 4% of the wage bill for an average large corporation.
The Hidden Cost of Presenteesim
Even when employees show up, they may not be fully present. Workplace presenteeism - when employees work despite illness, stress, or burnout - has been found to cost businesses 5 to 10 times more than absenteeism. Since the pandemic, these losses have only grown, impacting both individual performance and overall company success.
Burnout: A Rising Crisis
Burnout is surging, with devastating consequences for productivity, employee engagement, and retention. UK businesses now lose more than 80 million working hours annually to sick days caused by burnout. The financial toll is staggering—burnout is estimated to cost UK businesses over £700 million per year, with 44% of employees admitting they’ve taken sick leave due to stress, exhaustion, and emotional overwhelm
The Ripple Effect: Working Parents and the Mental Health Crisis
Another unseen yet critical cost is the strain on working parents. With 1 in 5 children experiencing a probable mental health disorder in 2023 (up from 1 in 9 in 2017), the responsibility on parents has intensified.
Deloitte reports that concerns over children’s mental health are costing UK businesses £8 billion per year, as working parents struggle to balance professional responsibilities with their children’s well-being.