What is the real cost of poor mental health for business owners?

What is the real cost of poor mental health for business owners?

Poor mental health at work not only increases absence and lowers engagement, it also hits your bottom line.

New research by Deloitte reveals that poor mental health at work costs UK employers a staggering £51bn a year.

But what does this mean for business owners, exactly?

Laura Reilly, an HR expert and owner of Taurus HR Solutions, says “These figures should grab every business owner’s attention. While there’s been a slight decrease from £56bn last year, it still surpasses the pre-pandemic level of £45bn in 2019 – and this is concerning.”

The research identifies three main factors contributing to poor mental health at work: presenteeism, where employees work despite being unwell; burnout, leading to mental and physical exhaustion; and the impact of family mental health issues, leading to reduced hours or time off.

“These issues carry significant implications for your business. Presenteeism alone costs businesses £24bn annually, while burnout diminishes productivity. The impact of children’s mental health on their working parents costs UK employers £8bn a year.”

Laura goes on to say, “If these findings don’t underscore the urgency of focusing on mental health, consider this: for every £1 spent on mental health support, businesses see a return of nearly £4.70 in improved productivity!

“The good news is, there are simple resolutions to achieve this. Start by assessing stress levels with regular pulse surveys on workload, management support and culture.

“Embedding mental health and wellbeing into your culture, backed by senior leadership, targeted interventions and a holistic approach that recognises employees’ personal lives, is also essential.”

Laura adds, “Implement strategies, like flexible work policies, which help to juggle caregiving responsibilities. Promote a work-life balance culture that encourages breaks and provides support systems like Employee Assistance Programmes.

“Prioritising mental health and wellbeing cultivates a healthier, more productive workforce, safeguarding your business’s success. To me, this is non-negotiable!

“My team and I would love to work with you to support mental health in your business, delivering cost savings, productivity gains and happier, healthier people.”

Business owners can arrange a free 15-minute consultation by visiting www.taurushr.co.uk

Taurus HR Solutions was formed in 2022 and outsources a full range of HR services to local businesses, as well as a number of learning and development courses.