"Employers are operating with naïve optimism that they have the right systems and processes in place to support their staff, but they’re working blind – they don’t have the visibility of data or metrics needed to make change."
- Julia Turney, Partner, Platform & Benefits at Barnett Waddingham
Of those surveyed (301), nearly three quarters (73%) of business leaders believe their organisations are well-prepared to manage mental health concerns in the workplace, yet 64% have seen a rise in absenteeism due to mental health-related issues. Just two fifths (41%) have responded by increasing the budget for mental health support, and only 28% said they’d invested in training around mental health challenges.
Employers have observed mental health services popularity is highest amongst younger employees, with 69% believing these resources are well-utilised by those aged between 25 and 34. However, mental health-related issues are most prominently observed within the same demographic, with 51% experiencing a significant impact – compared to decreasing concerns from older employees.
Despite the prevalence of poor mental health in the workplace, less than half (44%) of employers actively collect data on incidences of anxiety, and the same percentage (44%) of depression. Slightly more (46%) collect data on stress-related disorders. Barnett Waddingham believes this lack of data collection hinders efforts to accurately assess the scope of the problem, identify employees at risk, and implement effective support measures.
Notably, Group Risk Development (GRiD) reported that the most popular methods of measuring staff appreciation for employee benefits were informal feedback and feedback/suggestion boxes – either physical or email – for employee benefits-related feedback (46%), followed by formal staff surveys (45%), employee benefits forum/working group/employee liaison group (40%), and online activities that measure clickthrough rates on certain topics e.g. on company intranet (39%).
“We know that communication and appreciation are inextricably linked, as employees tend to value benefits more highly when they have a good understanding of what is available. It’s good to see so much measurement in place but this must go hand-in-hand with communication,” explained Katharine Moxham, Spokesperson for GRiD.
As cited in Autism Research’s ‘The Vulnerability Experiences Quotient (VEQ): A Study of Vulnerability, Mental Health, and Life Satisfaction in Autistic Adults’, given the relationship between mental health and neurodiversity, it’s critical that employers are aware of the neurodiverse composition of their workforce. Yet, 38% of employers don’t believe they’ve had any incidents of cognitive conditions like dementia or Alzheimer’s while 28% & 23% reported no incidences of learning difficulties or neurodiversity such as ADHD or autism.
Barnett & Waddingham believes these findings underscore the need for businesses to prioritise mental health in the workplace – failure to do so can lead to significant financial and productivity implications. Neglecting to track mental health conditions can lead to missed opportunities to address issues early, potentially resulting in absenteeism, depleted employee morale, and reduced productivity.
Looking ahead, businesses recognise the importance of addressing mental health with 40% intending to strengthen mental health-related support as a key strategic priority, followed by implementing mental health support programmes (38%), adopting phased returns to work (34%), and flexible working arrangements (31%).
“It’s clear there’s a stark clash between employers’ perceptions of their mental health support structures and the reality. Employers are operating with naïve optimism that they have the right systems and processes in place to support their staff, but they’re working blind – they don’t have the visibility of data or metrics needed to make change,” highlighted Julia Turney, Partner, Platform & Benefits at Barnett Waddingham.
She said: “The UK’s mental health crisis is having a tangible impact on our country’s growth and productivity. With a significant portion of the 2.8mn economically inactive adults across the country off work due to mental health concerns, this must be a priority to relieve pressure on the NHS, improve day-to-day health & wellbeing, and get the country back to work.
“Employers are a critical part of the ecosystem, and without accurate insights into workforce challenges, effective solutions are impossible. By implementing robust data capture and analysis of time off sick, causation, and benefit impact, organisations can better understand and improve employee wellbeing for the long-term.
“Businesses are leaning on Private Medical Insurance (PMI) to plaster over the cracks in the NHS’s support for mental health, financially justified as being better than dealing with absence. But medical inflation continues to increase, and costs are becoming unwieldy. The Government could support by offering tax rebates on preventative health benefits, guidance around employee care pathways, and incentives to insurers to invest in research & innovation,” Julia concluded.
