Employee mental health: a critical component of business success

In today’s fast-paced and competitive business environment, prioritising employee mental wellness has become essential for organisations aiming for long-term success.

Historically overlooked or viewed as a secondary concern, mental health is now recognised as a critical driver of productivity, creativity, and overall business performance.

Nathan Shearman, director of therapy and training at Red Umbrella, highlights the growing importance of mental health in the workplace. “Mental wellness is no longer something businesses can afford to overlook; it’s a core element of a healthy, sustainable workplace. Prioritising mental health isn’t just about supporting employees – it’s about driving the success of the entire organisation,” he says.

The Cost of Ignoring Mental Health

Employees experiencing stress or burnout often struggle with concentration, impaired decision-making, and mental fatigue. This leads to lower productivity, reduced creativity, and, ultimately, a direct impact on organisational performance. Prolonged stress can escalate into burnout, resulting in absenteeism and difficulties with re-engagement when employees return to work.

Shearman explains, “When employees are stressed or burnt out, their productivity and creativity take a hit. They’re unable to concentrate, decision-making becomes impaired, and mental fog sets in – this has a direct impact on the bottom line.”

Moreover, the modern workforce places greater emphasis on workplace mental health. “We’re seeing more and more that employees are not willing to stay with companies that don’t actively address mental wellness,” Shearman states. This is not only about retaining current employees but also about attracting new talent, as job candidates increasingly prioritise employers that value mental health.

The Financial Impact of Employee Wellbeing

High turnover caused by burnout and stress significantly increases recruitment costs. “Recruiting and training new employees is expensive, and that cycle only worsens when staff disengage due to a lack of support,” Shearman notes. Investing in mental health initiatives, however, offers a clear return on investment. A Deloitte study found that businesses see a return of £5 to £8 for every pound invested in mental health interventions.

Shearman underscores this point: “The misconception is that mental health services are expensive, but the real cost is in failing to provide that support. The return on investment is clear: improved engagement, reduced absenteeism, and a more loyal, productive workforce.”

Tailored Mental Health Support: The Key to Effective Interventions

One common workplace resource for mental health is Employee Assistance Programmes (EAPs). Despite their widespread availability, uptake remains low, with only 3–5% of employees using these services. According to Shearman, the lack of customisation often limits their effectiveness.

“Mental health needs are different in each organisation, which means offering the same off-the-shelf resources isn’t going to produce any real, positive change in an organisation. Understanding what staff need and then tailoring support to those needs is the only way forward,” Shearman advises.

Breaking the Stigma Around Mental Health

Although one in six people experience mental health challenges in any given week, stigma continues to deter employees from seeking help. This underscores the importance of normalising conversations about mental health in the workplace and ensuring employees feel comfortable accessing available support.

As businesses strive for sustainable growth, addressing mental health is no longer optional. Prioritising employee wellbeing is an investment in the future success of the organisation, with benefits that extend beyond the individual to the broader workplace culture.

“When businesses invest in their employees’ mental health, they are investing in their own sustainability. A healthy, engaged workforce is key to long-term success. If you want your business to thrive in today’s world, supporting employee mental wellness should be a top priority.”

Nathan Shearman

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