Why wellbeing in the workplace makes business sense

There is a growing recognition of the importance of mental health in the workplace, as organisations of all sizes and sectors are realising that supporting the mental health of their staff is not only morally the right thing to do, but can also pay literal dividends to the success of the business.   

Mental health issues are becoming increasingly common; each year around one in six employees struggle with mental health challenges that can affect their work performance and personal life. According to the Health & Safety Executive, stress, anxiety, and depression account for 51 per cent of all work-related ill health cases and the government believes that poor mental health is costing UK employers between £33 billion and £42 billion a year.

Senior Lecturer in Human Resource Management, Sheena Bevitt, says that wellbeing is key in terms of having sustainable workforces and organisations: “The United Nations’ Sustainable Development Goals include the importance of wellbeing and health, and the aim of having productive employment and decent work for all.

“When we think about sustainability we often think of resources – but people are different from any other resource because we're hired; we're not bought or owned.  

“Human beings are not cogs – we’ve got to look after them so that not only can they work, but they choose to work as well. Discretionary effort – when we make the choice to use our skills and qualities in ways that help the organisation – is the key to high performance.

Sheena believes that wellbeing should be seen as a core element of any performance management system: “When we are trying to get more out of people, if we don't at the same time look after their wellbeing, then we're going to end up with an unsustainable business model because employees will burn out. But if you just look at wellbeing and you don't think about engagement, you end up with a very healthy workforce, but you're not necessarily seeing the organisation benefit from that wellbeing. The two things really need to be hand in hand.”

Improving approach

Kate Wood is Project Manager for the Mental Health and Productivity Pilot (MHPP), which is based at the University of Derby and gives organisations in the Midlands free support to improve workplace mental health. Funded by the Department for Work and Pensions and supported by the Department for Health and Social Care and Midlands Engine, the project has so far helped 800 organisations and 600,000 staff to improve their approach to mental wellbeing.

“When employees are struggling with mental health issues, they may find it difficult to concentrate, make decisions, or complete tasks. Employees who are struggling with their mental health may have also difficulty coming up with new ideas and problem-solving, which reduces creativity and innovation. This can lead to decreased productivity, low morale, and increased absenteeism. 

Kate emphasises that giving employees access to resources to improve their mental wellbeing helps them feel supported and valued: “This means they are more likely to have positive attitudes toward their work and stay with the company longer; this avoids the disruption of staff turnover, which can be significant.

“It’s also hugely beneficial to the bottom line. By prioritising staff mental health, promoting employee wellbeing, and creating a more positive work environment, organisations can see a return of £5.30 for every £1 invested in employee mental health.”

A person smiling

Human beings are not cogs - we've got to look after them so not only can they work, but they choose to work as well.

Sheena Bevitt
Senior Lecturer in Human Resource Management

Help for businesses

So how do businesses get the help they need to be able to provide the right support for their people? Kate says that one way is through the Mental Health and Productivity Pilot:

“Organisations can choose one of two routes – they can either join the Thrive at Work accreditation programme or they can sign the Mental Health at Work Commitment. Both are underpinned by the six mental health at work standards. 

“We work with organisations on a one-to-one basis to create a bespoke plan, starting by doing a deep dive into the organisation and exploring what they currently do in terms of staff wellbeing. We look at what they have already got in place and what their current sickness trends are like; have they noticed a rise in absence due to mental health and wellbeing?

“We also ask them to think about where they would like to get to – do they want to be an employer of choice? Because currently, employees are in a much stronger position to be choosier and are looking for an employer that cares about its staff and shares their values.”

Kate cautions that it can't just be a tick box exercise:

“Mental health and wellbeing must be the golden thread that runs throughout an organisation. We work with businesses every step of the way to make sure that they are prioritising mental health and wellbeing and that they are integrating it into all their processes. We make sure they're checking in regularly with staff, and that they're engaging with them in an effective way. Where there are lots of opportunities for employee engagement, and it’s clear their feedback will be listened to and acted upon, you will see a much more loyal workforce.”

Past users of the service have been pleased with the results. Simon Ratcliffe, Safety & Environmental Manager at construction firm G F Tomlinson Ltd, said:

“Changing perceptions and starting conversations on mental health is difficult to do in a male dominated industry with many contractors and sub-contractors on sites. MHPP worked with us to address the challenges this brings and helped shift culture.”

Director at TTK Confectionery, Jess Barnett, says:

“Signing up to the Mental Health at Work Commitment has made us more confident as a business in speaking up about mental health.

“I would tell other businesses unsure about whether to sign up to a mental health scheme at work to go for it – the statistics on how mental health affects productivity was a real eye opener for us, so it’s definitely worth a firm’s time to make a difference in their workplace.”

A person at a desk on the phone
Kate Wood

Mental health and wellbeing must be the golden thread that runs throughout an organisation. Where there are lots of opportunities for employee engagement, you will see a much more loyal workforce.

Kate Wood
Project Manager, Mental Health and Productivity Pilot

Specific needs

While all employees clearly benefit from working in organisations which prioritise good mental wellbeing, Sheena emphasises that those at either ends of their careers have specific needs.

“It’s an exciting time for new graduates moving into the workforce, but they can also face many challenges. The high achievers, who are used to getting top grades because they have studied hard into the evenings and weekends, can find it hard to get used to managing their work life balance and understanding how to switch off from work at the end of the day, particularly at a time when they are wanting to impress and make their mark. 

“Employers need to be aware that when they have new graduates, this might not be a skill that they've developed particularly well yet so it’s important to support them and encourage a good work-life balance.

“These are the managers of the future, and we must embed in them in a culture of wellbeing early on, so they can role-model and champion good behaviour as they progress to supervising others.

At the other end of the spectrum, says Sheena, are those working late into their careers. “Sustainable businesses need people to work up to and even beyond retirement age to keep experience within the workforce, and the only way we can do that is if we have wellbeing at the heart of the culture of organisations. We also want people to want to work – so it's not just about being well enough to work, but also having the desire to do so.”

The Mental Health at Work Commitment standards 

  1. Prioritise mental health in the workplace by developing and delivering a systematic programme of activity
  2. Proactively ensure work design and organisational culture drive positive mental health outcomes
  3. Promote an open culture around mental health
  4. Increase organisational confidence and capability
  5. Provide mental health tools and support
  6. Increase transparency and accountability through internal and external reporting

Written by Alice Oliver