Why UK companies are losing billions to poor mental health

Workplace mental health isn’t just an issue that affects people on a personal level, it’s also become a critical business concern. UK companies are losing billions of pounds every year due to poor mental health in the workplace.

According to Deloitte, poor mental health among employees costs UK employers between £42 billion and £45 billion annually. This cost is made up of absenteeism, presenteeism (where employees are physically present but not fully productive), and employee turnover. Given the cost to both businesses and their employee’s wellbeing, investing in wellness programs is more vital than ever.

The true cost of poor mental health

Poor mental health is often invisible in the workplace, but its effects are felt every day.

Deloitte’s report highlights that the financial burden on UK employers is substantial, with £7 billion attributed to absence, as workers take time off due to the stresses of mental health. More concerning, however, are the costs associated with presenteeism, which are estimated to range between £27 billion and £29 billion.

This refers to employees coming to work but not functioning at their full capacity due to mental health challenges. They may be exhausted, stressed, or overwhelmed, and as a result, their productivity suffers.

Finally, the cost of turnover, employees leaving their jobs due to mental health struggles which adds an additional £9 billion to employers’ annual costs.

The employee well-being crisis

These challenges are felt heavily, as shown by Deloitte’s Advancing Workforce Well-being report which revealed that the mental health crisis is widespread across all levels of the workforce.

60% of employees, 64% of managers, and a staggering 75% of C-suite executives are seriously considering leaving their jobs for one that offers better mental health support.

The UK’s mental health crisis doesn’t discriminate and it affects the entire organisational structure, from top leadership down to entry-level employees.

The breakdown of symptoms people experience at work continues to illuminate the troubling state of mental health at work. Many workers report feeling exhausted (52%), stressed (49%), overwhelmed (43%), and even depressed (32%) or angry (27%). These emotional struggles severely hamper employee performance and, over time, can result in burnout or disengagement, which contributes to the billions of pounds being lost each year.

The ROI of wellness programs

While both the financial and personal costs are alarming, the potential return on investment (ROI) for companies that invest in employee mental health is thankfully just as striking.

Deloitte’s analysis shows that for every £1 spent on supporting employee mental health, companies can expect to see an average return of £4.70 in increased productivity and reduced absenteeism.

This demonstrates that mental health programs not only improve employee well-being but also deliver tangible financial benefits for businesses. Companies that implement effective wellness programs see reductions in stress, better team dynamics, and greater overall employee satisfaction.

Creating a cultural shift through wellness programs results in fewer absences, improved employee engagement, and higher retention rates, all of which contribute to a healthier workforce and a healthier bottom line.

How wellness programs can make a difference

Corporate wellness programs, especially those that focus on mental health, offer a solution to this growing problem. Regular physical activity, social support, and stress management initiatives have all been shown to improve mental well-being.

Our Muay Thai Wellness workshops provide a unique way to engage employees in physical exercise while promoting team-building and stress relief.

Based on research, group-based activities like these not only foster a sense of connection among employees but also enhance adherence to wellness practices, which helps sustain long-term benefits for both employees and the company.

Deloitte’s findings make it clear that investing in wellness programs that address mental health is not just a moral imperative but a financial necessity.

Companies that prioritise employee well-being stand to benefit from healthier, more productive, and more loyal teams.

Take action: Protect your bottom line by supporting mental health

If you’re an HR manager or business leader, it’s time to start seeing employee well-being as an investment in your company’s future.

With the costs of poor mental health climbing and the ROI of wellness programs proven to be significant, the business rationale for supporting mental health in the workplace is undeniable.

To learn more about how our Muay Thai Wellness workshops can enhance your company’s wellness program and improve mental health outcomes, contact us today to find out more.

Investing in employee well-being now can lead to a healthier, more productive, and more profitable future.