Poor staff mental health costs employers £51bn a year, report finds

The cost to employers of poor mental health is £51bn per year, according to a new report from consultancy firm Deloitte.

The figure represents a decrease from £55bn in 2021, but an increase from £45bn in 2019. Presenteeism – where people continue working, despite being ill, and therefore don’t perform to their full ability – is the largest contributory factor in the cost, amount to £24bn a year.

The report, which was based on a survey of 3,156 working adults conducted by YouGov on behalf of Deloitte in 2023, also found that:

• Nearly half (46%) of working parents were concerned about their children’s mental health, costing UK employers £8bn annually due to impact on performance, taking time off work or leaving their roles
• Nearly two-thirds (63%) of respondents were experiencing at least one characteristic of burnout, an increase from 51% in 2021
• For every £1 spent on supporting the mental health and wellbeing of their workforce, employers get (on average) about £4.70 back in increased productivity

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%).

Dr Sarah Hughes, CEO of Mind, said: “Work is important. It affects every area of our lives –and that includes our ability to participate in our families, perhaps to be a supportive parent, and enjoy spending time with our loved ones.

“We know it’s critical for businesses to consider ways to better support working parents – considering flexibility, providing additional support, and creating a culture where talking about life’s challenges is acceptable.”

More positively, the report found that more than half (58%) of survey respondents said their mental wellbeing was good or excellent. There were also improvements for younger people with 64% of 18-24-year-olds reporting that their overall mental health was good, an increase from 53% in 2022.

Children’s mental health affects parents’ work performance

The report, which is published annually, has looked at the impact of children’s poor mental health on working parents for the first time. Nearly half of working parents are concerned about their children’s mental health, and half of those say it affects their performance at work. Deloitte’s report, which was created in collaboration with mental health charities Place 2 Be and Mind, estimates the cost impact of children’s mental ill-health on employers as £8bn. The cost is derived from a combination of parents taking time off work to care for their children, the impact on their performance and parents leaving their roles.

A majority of working parents (63%) who expressed concern about their children’s mental health said they turn to external sources of support to manage their children’s mental health challenges, rather than approaching their employer for additional support. Of those who are concerned about their children’s mental health, a third (32%) have looked to reduce their working hours while 19% have turned to their employer for additional support, such as an employee support line, childcare, or flexible working arrangements.

Parents have to juggle demands

Juggling demands of work alongside caring for a child with mental health difficulties led to 10% of parents taking up to five days off per year to support their children. One in a hundred working parents have left their jobs because of the poor mental health of their children.

Elizabeth Hampson, Deloitte partner and author of the latest mental health research, said: “Work performance is being impacted as more than one in ten parents have taken time off work to support their children’s mental health and one in 100 is leaving a job as they simply can’t juggle the demands of work alongside caring for a child with mental health difficulties. Alongside wider societal support, our research shows that specific support, including for working parents, can help reduce time out of the office and presenteeism.”

Catherine Roche, CEO, ofPlace2Be, a children’s mental health charity, said: “Children don’t come with a manual: in today’s fast-moving landscape we need to support parents and carers to build their confidence and understanding of emotions and behaviours, so they can foster resilience, healthy coping mechanisms, good mental health and wellbeing.”