Companies blind to mental health crisis as absenteeism soars

Keywords: mentalhealth, leadership, bottomline, proactivestrategies, sustainablesuccess

Date: 14 April 2025, WorkLife Digital

Absenteeism and employee turnover are two of the most pressing challenges facing business leaders across Europe and the UK today. These issues are no longer isolated incidents but systemic problems with far-reaching consequences for productivity, profitability, and workforce morale. At the heart of this crisis lies a critical factor that continues to demand urgent attention: mental health.

The scale of the problem

Across Europe, absenteeism has reached alarming levels. In Germany, employees take an average of 19 days off annually due to illness, costing the economy €200 billion - or 4.5% of GDP. France faces a similar strain, with rising sick leave costs now impacting national budgets. Norway leads in absenteeism among Nordic countries, with sick days hitting a 15-year high. Meanwhile, in the UK, sickness-related absences have cost £30 billion over five years.

Mental health is a significant driver of these trends. According to Eurostat, 21% of EU adults suffer from mental health conditions, while 18% of UK adults now take antidepressants. In the UK alone, poor mental health costs employers between £42 billion and £45 billion annually through absenteeism, presenteeism, and turnover. These figures underscore the urgency for businesses to address mental health proactively.

The impact on businesses

The consequences of absenteeism and turnover extend beyond financial losses. When employees are absent or leave their roles due to mental health struggles, businesses face:

Productivity gaps: Remaining staff must shoulder additional responsibilities, often leading to burnout and reduced efficiency.
Skills shortages: High turnover disrupts workflows and increases recruitment and training costs, which can amount to 50%-200% of an employee’s annual salary.
Workplace morale issues: Overburdened teams can experience declining engagement and satisfaction, further exacerbating retention challenges.

These ripple effects highlight why addressing mental health is not just a matter of employee welfare but also a strategic imperative for organisational success.

Mental health as a business priority

Recent studies emphasise the importance of proactive mental health strategies in reducing absenteeism and turnover. For example:

A Deloitte study found that every £1 spent on mental health interventions yields a £4 return through reduced absenteeism and improved retention.
Research shows that Employee Assistance Programs (EAPs) can deliver an ROI between $5-$6 for every dollar invested - as long as it provides relevant support and services and is promoted to be used by employees
Companies that integrate mental health days into paid leave policies see reduced unauthorised absences and improved employee focus.

These findings demonstrate that investing in workplace mental health is not only ethical but also economically advantageous.

Proactive strategies for mental health

To combat absenteeism and turnover effectively, business leaders must adopt proactive measures that prioritise employee well-being. Key strategies include:

1. Regular mental health assessments

Conducting workplace mental health assessments helps identify stressors and areas of concern before they escalate into issues. Surveys, focus groups, and one-on-one interviews can provide valuable insights into employees’ needs.

2. Tailored mental wellbeing strategies

Using measurements and analytics to develop tailored mental wellbeing strategies recognises employees’ individuality and organisational trends. This approach identifies risks and strengths, enabling targeted solutions that foster shared responsibility, improve engagement, and deliver measurable ROI through enhanced productivity and reduced absenteeism.

3. Preventative Initiatives

Introducing mentoring and coaching programs provides employees with a safe space to vent, process, and work through challenges without fear of judgment. External or cross-departmental mentors or coaches are particularly effective, offering impartial guidance and fostering trust.

4. Mental health support programs

Training managers in people management skills, including recognising early signs of distress, is vital to supporting staff effectively. Equipped managers foster trust, address challenges proactively, and create a workplace culture that prioritises employee wellbeing and productivity.

5. Workplace culture shift

Creating a psychologically healthy workplace involves fostering open communication about mental health. When employees feel safe discussing their struggles, they are more likely to seek help early - preventing prolonged absences or disengagement.

The role of leadership

Leadership plays a pivotal role in driving change. HR professionals and executives must champion mental health initiatives by embedding them into organisational strategy. This includes:

Setting clear policies that prioritise psychological safety.
Allocating budgets for mental health resources.
Measuring impact through data-driven approaches.

In 2025, forward-thinking companies are moving beyond reactive solutions toward holistic strategies that address root causes of absenteeism and turnover. By doing so, they not only enhance employee well-being but also position themselves as employers of choice in competitive markets.

A shared responsibility

The rise in absenteeism and turnover linked to mental health challenges is a wake-up call for business leaders across Europe and the UK. Addressing these issues requires a shift in mindset - from viewing mental health as a peripheral concern to recognising it as central to organisational success.

Absenteeism isn’t helping anyone - neither companies nor the economy. By investing in proactive strategies such as regular assessments, tailored strategies, support programs, and cultural shifts, companies can create healthier workplaces where employees thrive. The benefits are clear: reduced absenteeism, lower turnover rates, improved productivity - and ultimately - a more resilient business.

WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.

For more information, get in touch at lisa@worklife.digital

REFERENCES

https://fortune.com/europe/article/europe-absenteeism-mental-health-work-culture/

https://ec.europa.eu/eurostat/statistics-explained

https://media.nhsbsa.nhs.uk/press-releases

https://www.hse.gov.uk/statistics