The State of Mental Health in the Workplace

More workers are experiencing mental health struggles than ever before. According to the Health Foundation, 3.7 million UK workers have health conditions that limit their ability to work, with a substantial proportion of these relating to mental ill health. This issue is especially concerning for younger employees (16-34 years old) where work limiting mental health challenges have quadrupled over the past decade. This indicates that a larger portion of the working population will experience fluctuating health needs in the future.

Moreover, there is evidence that work is causing or worsening mental ill health. The Health and Safety Executive reports that in 2022/23, around half of all self-reported work-related ill health cases in Great Britain were related to stress, depression, or anxiety. Employers should also be concerned about sickness absence rates as mental health is in the top three reasons for short-term absences and the top reason for long-term absence, according to CIPD data. The cost of mental ill health is stark; Deloitte, in their analysis, estimate that absenteeism combined with presenteeism (working while unwell and being less productive) and employee turnover, cost UK employers around £51 billion annually.

Why Mental Health Should Be a Workplace Priority

The Business Case

Unsurprisingly, given the figures above, there is a strong business argument for supporting mental health in the workplace. Deloitte estimate that for every £1 spent on mental health support, employers see an average return of £4.70 through increased productivity and reduced absenteeism. Well-supported employees are more likely to remain in their jobs; a report by Benenden Health found that 56% of employees would look for new work if their wellbeing was not valued by their employer. A workplace that prioritises wellbeing also improves its reputation, making it more attractive to top talent.

The Legal Case

Employers have a legal obligation to support mental health. Under the Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999, organisations must assess risks related to workplace stress and take preventive action. In Acas's experience, employers are getting better at conducting individual risk assessments after stress-related absences, but there is still a way to go in terms of implementing organisation-wide preventative stress risk assessments.

Additionally, the Equality Act 2010 requires employers to make reasonable adjustments for employees with mental health conditions that are considered a disability. A failure to do so could amount to discrimination. Irrespective of whether an employee’s condition fulfils the legal definition of a disability, offering support when an employee’s mental health is impacting their work can make all the difference in helping them stay productive and engaged.

The Human Case

At the heart of this issue, employees deserve to feel valued and supported. Workplaces that prioritise empathy and understanding create environments where employees feel comfortable sharing their challenges. This leads to better relationships, stronger loyalty, and a sense of trust between employers and employees. A workplace that genuinely cares about its people fosters a culture where wellbeing is a priority, benefiting everyone involved.

Overcoming Challenges

Awareness vs. Action

While awareness of mental health has certainly grown, taking action remains a challenge for many organisations. Acas finds that some employers feel overwhelmed by the plethora of potential solutions and are unsure of the best approach, while others focus on reactive measures rather than tackling the root causes of stress. For some, inconsistent leadership commitment is also an issue that prevents action.

Cost vs. Investment

Some organisations, particularly smaller ones, find it hard to get past the extra cost of investing in mental health. In smaller businesses especially, limited resources may mean solutions are difficult to prioritise alongside other immediate business needs. However, long-term investments such as training managers to support employees can yield significant returns. Deloitte estimates a £4.7 return for every £1 spent on mental health initiatives. A common misconception is that reasonable adjustments are costly. However, when surveying employees during the development of the Acas mental health reasonable adjustments guidance, the most frequently requested adjustments were low-cost ones such as flexible working hours and frequent breaks. Investing in mental health support not only boosts productivity but also leads to cost savings through reduced absenteeism and staff turnover.

Managerial Time Constraints Vs Essential Skills Development

Acas are often asked how managers can support their employees' mental health when they are too busy to have regular one to ones or to attend mental health awareness training. Managers report that they frequently feel unprepared or lack the confidence to support mental health or manage conflict (which has a significant impact on wellbeing in the workplace). Workload planning and organisational processes should take into account the extra time that managers need to focus on and upskill in this critical area. In addition, flexible training solutions, like the Acas conflict management skills course developed with the University of Westminster, allow managers to complete training in bite-sized chunks at their convenience.

Learning from Success Stories

Acas works with many organisations, from SMEs to large organisations, in different sectors, and there are some common best practices for supporting employee wellbeing:

• A clear strategic plan that integrates mental health into core business operations, focusing on both prevention and support.
• Leadership buy-in, with senior leaders visibly committed to mental health initiatives, role-modelling healthy behaviours and challenging stigma.
• Organisation-wide stress risk assessments to meet legal requirements and proactively address work-related stress.
• Using organisational data (employee surveys, absence records, exit interviews) to inform targeted support.
• Investing in line manager training to enable supportive conversations, identify early signs of mental ill-health, manage workplace conflict, and make reasonable adjustments.
• Comprehensive policies and procedures on flexible working, return-to-work, reasonable adjustments, and managing poor conduct to foster a wellbeing culture.
• Access to support services like EAPs, Occupational Health, and peer networks to provide employees with resources when needed.

The Way Forward: From Awareness to Action

Mental health is no longer a “nice-to-have” consideration; it is a workplace priority that impacts productivity, employee engagement, and overall business success. Organisations that prioritise mental health create an environment where employees can thrive, leading to stronger businesses and healthier, more loyal workforces. As awareness grows, now is the time for employers to move from recognition to action, ensuring that mental health is not only a priority on paper but a reality in practice.

Further Support

Acas is an independent public body that receives funding from the government and provides free and impartial advice to employers, employees and their representatives on employment rights, best practice and policies and resolving workplace conflict. Acas is able to support with the issue of workplace mental health through guidance on the Acas website, Acas helpline and through its advisory services including mental health in the workplace training.

Author information:  

Francoise Woolley works for Acas as a Senior Business Adviser and National Lead for Mental Health, with 10 years’ experience working with both public and private sector organisations, developing evidence-based mental health strategies for workplaces. As former Head of Mental Health and Wellbeing at Acas, she led staff support efforts during the pandemic. Holding an MSc in Forensic Psychology, Francoise previously worked in the prison service and other criminal justice settings, working therapeutically with high-risk offenders with mental health issues. She is also a trained workplace mediator and an associate coach with the Civil Service Coaching Network, supporting Senior Leaders to improve performance.