Mental health in the workplace: The investor perspective

In 2017 the then UK Prime Minister, Theresa May, commissioned an independent review into how employers could better support the mental health of all people in employment.The resulting Thriving at Work review revealed that the UK was facing a mental health challenge at work that was much larger than anyone had predicted [1].Thanks to Deloitte, the report put hard and fast figures on the cost to employers of mental ill-health.The mist of sweeping generalisation was blown away to reveal an astonishing reality: that companies are losing billions of pounds because their employees are less productive, off sick, or leaving work altogether.At the time, the cost of mental ill-health to UK businesses was estimated at 33bn-42bn each year [1].In 2020-21, as the Covid pandemic swept across the globe, that figure had risen to 55bn.By 2022-23 it had eased back to 51bn; relatively lower, but staggeringly high when considered in absolute terms [2].The associated human cost is immeasurable.Be that as it may, there are reasons to be positive.Research published in 2024 found that investing in employees' mental health yields positive financial results.The average return on investment is estimated at 4.70 for every 1 spent; an amazing 370% return on invested capital [2].This represents a phenomenal opportunity, not only for employers, but also for their many internal and external stakeholders: employees, customers, suppliers, creditors, communities, governments, and, not least, their investors.