According to Mental Health UK, over the past decade the number of workers aged 16–34 years who reported that their mental health limits the amount of work they can do has more than quadrupled.

Mental health in the workplace has gained much-deserved attention in recent years as employers have seen how supporting employees benefits not only the individual, but the business as a whole.

Businesses that prioritise mental health are seeing the benefits of happier, healthier, and more engaged employees, but why exactly is mental health important in the workplace?

Here, we’ll be exploring why prioritising mental health is so beneficial and strategies your business can implement to encourage mental well-being within your team.

Why does mental health at work matter?

Did you know the average person will spend one-third of their life at work?

Workplaces are where most people will spend the majority of their time, so why would they not want to ensure it was a positive environment to work in?

Poor mental health at work can have a knock-on effect, causing problems in people’s personal lives and within the business.

Leading mental health charity Mind UK has found that one in six workers experiences mental health issues such as stress, anxiety or depression at any given time.

As a result, those suffering will often start to take more days off work, become less productive during the work day and are more likely to leave the company.

However, workplaces that value mental health and invest resources into this area of their staff’s lives see far less absenteeism, increased productivity and a happier, healthier team.

What are the benefits of a mentally healthy workplace?

A mentally healthy workplace benefits employees and employers.

For employees, there are a range of benefits, including:

• Improved well-being: When employees are encouraged to prioritise their mental health, it creates an environment where they feel supported and valued.
• Improved performance: Everyone wants to perform well at work, and statistically speaking, happy employees are 13 per cent more productive and less likely to experience burnout. Good mental health means more focus and more efficient workflows
• Increased job satisfaction: Positive work environments have been shown to improve job satisfaction, allowing your team to feel more connected to their role and take pride in their work
• Reducing stigma: With one in six workers facing mental health struggles, open discussions in the workplace can help encourage employees to reach out and seek help without fear of judgment.

On the other end of the spectrum, mentally healthy workplaces also benefit employers, with mental health initiatives having a return on investment of up to 800 per cent.

Some of the key areas in which employers see improvements are:

• Increased productivity: An increase in productivity not only benefits employees but also businesses as a more engaged team will help the business achieve its goals quicker
• Reduced absenteeism: Sick days caused by stress and other mental health issues can be significantly reduced when you have a team whose mental health is prioritised year-round.
• Improved staff retention: It’s no secret that employees are more likely to stay in jobs where they feel valued, happy, and have their mental health prioritised. In turn, this saves businesses money on training and recruitment costs.

How can employers support good mental health in the workplace?

Employers need to take the lead in creating a workplace that supports good mental health.

Many companies in the UK are now taking a number of actionable steps to ensure their team feels supported.

To begin with, open communication with a clear open-door policy is a basic but powerful step employers can take to ensure their team feels comfortable discussing concerns.

As part of this, it’s important that employers clearly communicate to employees that a healthy work-life balance is encouraged.

This can include flexible work hours, potentially accommodating hybrid working, and discouraging excessive overtime.

Employee surveys from Q4 of 2024 have now revealed that 69 per cent of employees say that recognition and rewards keep them loyal to their employers.

Acknowledging employee’s hard work and contributions is essential to boosting morale and creating a positive environment that makes staff feel good and keeps retention high.

Finally, as an employer, providing mental health training and adequate resources should be at the top of your priorities.

Managers should be equipped with the skills to recognise when staff are experiencing a decline in mental health and be able to respond sensitively.

As part of this, employers should try to offer counselling services and access to mental health resources.

What can businesses achieve with effective mental health initiatives?

The right mental health initiatives can completely transform a business, with many companies seeing higher employee engagement, improved teamwork and improved bottom lines.

Employees who feel cared for and supported and lead healthier lives are more likely to invest more time and energy into a business, wanting it to succeed and be a part of that success.

In fact, a case study from Deloitte demonstrated that companies who invested in mental health programs saw an average return of £5 for every £1 spent.

What to do if a job is negatively affecting your mental health

Often, people can reach a point where their mental health is suffering as a direct result of their job.

If you are struggling, it’s crucial for you to take action by doing the following:

Speaking to your employer

The first step is to always communicate with your employer and discuss your feelings to highlight your concerns and try to work with them to find a solution.

Reaching out for professional help

Those struggling with mental health should always seek out support, advice and guidance from trained mental health professionals.

Your workplace may offer access to these services, or they can be made available via your GP.

If you have found yourself in a position where your job has started to negatively affect your mental health inside and outside of the workplace, it’s essential to reach out.

Know the Law

UK employment laws are in place to protect employees across the country, particularly those who are struggling with their mental health.

If you are facing ongoing mental health problems, you are likely to meet the definition of having a disability under the Equality Act 2010 and the Disability Discrimination Act 1995.

As such, your employer is required to make reasonable adjustments to accommodate these mental health conditions, and failure to do so is a breach of these laws.

Seek legal support

As a final course of action, you may wish to seek legal advice if your employer has failed to act on the previous points, your mental health issues are worsening, or you believe your employee rights have been violated.

To learn more about why mental health is important in the workplace, visit our Mental Illness at Work page.

According to a survey by Spill, employees take around 18 days off a year due to stress, depression, or anxiety.

In contrast, they’re absent for around 17 days because of physical ill-health.

For many years, businesses have focused on physical health when addressing employee well-being, but recently the importance of supporting mental health in the workplace has attracted some much-needed attention.

In 2025, poor mental health doesn’t just affect the individual but can have a significant impact on business operations.

In this comprehensive guide, we’ll be outlining how to spot mental health issues in the workplace, providing employers with the knowledge to identify signs workers might be struggling and sensitive steps that can be taken.

Can you measure mental health in the workplace?

Keeping track of mental health isn’t as straightforward as tracking when employees are physically unwell, but you can take several steps to assess how your team are feeling.

A number of companies opt to use the Karasek questionnaire, also known as the Job Content Questionnaire (JCQ), which measures psychosocial factors and job strain.

The 26-item questionnaire is designed to assess mental health in the workplace in a general way and can be completed anonymously.

The results can help businesses understand the link between how work is experienced and the risks it poses to mental health.

Tracking sick leave is another way to keep an eye on the mental well-being of your employees, as a sudden unexplained increase may indicate underlying mental health struggles.

Regularly checking in with managers and HR is another way to gauge how teams of people are feeling to help uncover any behavioural changes that have been noticed.

If employees are displaying a lack of engagement with their work, it may indicate a deeper mental health issue.

Naturally, these methods won’t always provide a complete picture of how everyone is feeling in a workplace, but they can help to identify problems and subtly demonstrate how, as a business, the mental health of your team is a priority.

What is the impact of poor mental health on performance?

According to AXA, poor mental health in the workplace cost the UK economy £102 billion in 2023.

This includes £26 billion lost due to absenteeism, and £57.4 billion from reduced productivity caused by mental health issues such as stress, burnout, and emotional distress​.

It’s clear that declining mental health at work can have a ripple effect on both the individual and the business as a whole.

Mental health struggles often lead to difficulty staying focused, feeling less motivated, and consistently missing deadlines.

This can then have a domino effect where employees dealing with stress, anxiety or depression may make more mistakes and feel unable to seek support.

With more than a third (35 per cent) of workers feeling unable to discuss high-stress levels with managers, these problems tend to worsen, leading to employees leaving their roles altogether.

Ultimately, unresolved mental health issues can cost a company time and money through errors, absenteeism, and recruitment cycles.

How to tell if a job is affecting your mental health

It’s not uncommon for the everyday pressures of work to start affecting your mental health, but if you begin to notice the following signs, it’s crucial to seek support from external mental health professionals and speak to HR/management.

Ongoing stress

If work leaves you feeling persistently stressed and overwhelmed during and outside of work, it may be a sign that you are suffering from burnout.

Struggle sleeping

Stress, anxiety, and depression can all interfere with your sleep, leading to problems concentrating and functioning in the workplace.

In fact, some studies have shown that up to 53.1 per cent of young adults report engaging in bedtime procrastination as they feel they lack control and are struggling with their mental health during work hours.

Isolation

If you find yourself avoiding colleagues, having minimal interaction with people in the workplace and declining social work events, this could be an indication that your mental health is suffering.

Physical illness

Long-term mental health issues can often transition into physical health problems, including headaches, digestive problems and other issues triggered by chronic stress or anxiety.

How do you know if an employee is struggling mentally?

Employers need to look out for key signs that their employees are facing mental health challenges in the workplace and respond sensitively.

Some of the most common signs are:

• Changes in behaviour
• Mood swings
• Decline in their physical appearance
• Increased number of physical health issues
• Avoiding communicating or engaging with the team

Employers should always be actively working to create a workplace that values and encourages open communication and discussions about mental health so employees feel comfortable sharing their struggles.

Practical steps to support employee’s mental health

It’s clear that employers should now be taking proactive steps to support their employees with any mental health challenges they encounter by creating an open, supportive workplace with adequate resources.

Some of the ways you can help are as follows:

• Encouraging openness: Promoting awareness and encouraging your staff to talk openly about mental health helps to reduce the stigma. The more this message is conveyed, the more it will become a part of your company culture.
• Provide resources: Ensure that your staff are aware of the mental health resources available to them and, if possible, offer access to wellness initiatives such as gym memberships, counselling and wellness apps.
• Encourage a healthy work-life balance: Staff should be encouraged to work reasonable hours and avoid unnecessary overtime that can lead to burnout. You may also consider flexible working arrangements or hybrid working to allow employees more flexibility.

Taking steps such as these not only improves the overall well-being of employees but also creates the kind of workplace that people are happy and proud to be a part of.

To learn more about how to spot mental health issues in the workplace or for more on seeking legal advice, visit our Mental Illness at Work page for information.