The hidden costs of not measuring organisational mental health

Keywords: mentalhealth, measurement, analytics, strategy, generationalneeds

Date: 21 November 2024, WorkLife Digital

Mental health issues contribute significantly to absenteeism and presenteeism, directly impacting productivity and the bottom line. A recent survey* found that 64% of employers reported a rise in mental health-related absenteeism across all age groups. Coupled with recruitment difficulties, particularly among younger workers, this creates a vicious cycle that widens the skills gap and hampers organisational growth.

However, many businesses remain unprepared to tackle these issues effectively. While some organisations claim to be equipped to address mental health challenges, the lack of comprehensive data monitoring and analysis suggests otherwise.

Only 46% of businesses monitor stress-related disorders.
44% track anxiety.
44% measure depression.

Without robust data, organisations cannot fully understand the scope of the problem, let alone implement effective solutions.

The challenges of addressing generational mental health needs in the workplace

The workforce is now a mosaic of generations, each with unique experiences, expectations, and challenges. Older workers often bring invaluable skills, experience and resilience but may require tailored support for stress over financial and retirement concerns. On the other hand, younger workers—particularly those aged 25-34—are reporting unprecedented rates of mental health issues.

Recent data from the UK Office for National Statistics (ONS) reveals a sharp rise in economic inactivity due to mental health conditions, particularly among younger individuals. Between 2019 and 2023, the number of people aged 16-64 inactive due to depression, anxiety, or "bad nerves" rose from 965,119 to 1,351,267. Similarly, those unable to work due to mental illness increased from 671,658 to 884,715.

Alarmingly, younger people are entering the workforce with pre-existing mental health challenges. In 2023, over 63,000 young people transitioned directly from education to sickness benefits—a figure that has doubled since before the pandemic. This underscores the need for businesses to address mental health proactively, not reactively.

The middle-manager squeeze

Middle managers are often on the front lines of these challenges, tasked with supporting teams while meeting performance targets. Yet many lack the training, resources, and skills to manage mental health issues effectively. This results in a ripple effect:

Increased burnout among managers, who feel ill-equipped to support struggling employees.
Reduced team cohesion, as mental health challenges go unaddressed or are handled ineffectively.
Higher turnover, as employees leave for organisations that better align with their mental health needs.

Investing in manager training and providing tools to support mental health is not a luxury—it’s a necessity. Without it, businesses risk losing valuable talent at all levels.

Data-driven solutions: The path forward

Businesses must recognise that mental health is not a one-size-fits-all issue. Tailored strategies require a deep understanding of the workforce’s unique needs, which can only be achieved through robust data collection and analysis.

1. Measure and monitor mental health, not just engagement

Invest in tools and platforms that provide insights into the mental health risks and needs of employees. This includes measuring stress, anxiety, and depression levels across the organisation.

2. Align benefits with workforce needs

Offer benefits that reflect the diverse needs of your workforce. For example, younger employees may prioritise mental health apps, counselling and therapy, while older workers might value physical health programs and retirement planning.

3. Train middle managers

Equip managers with the skills to recognise and address mental health issues within their teams. This includes training in effective listening, empathy, and signposting to appropriate resources.

4. Foster a culture of openness

Normalise conversations around mental health by creating an inclusive culture where employees feel safe discussing their challenges. Leadership must model this behaviour by being transparent about their own mental health journeys.

A call to action for business leaders

Over the past few years, businesses have navigated an array of challenges, from global financial upheaval and the pandemic to geopolitical uncertainty. While long-standing issues such as the skills gap and declining productivity persist, two emergent factors now heavily influence organisational resilience: the divergent needs of a multigenerational workforce and the rise in mental health issues, particularly among younger employees.

Ignoring mental health is no longer an option. The financial and human costs are simply too high. To ensure long-term sustainability, businesses must invest in data-driven strategies that address the unique needs of their workforce. Understanding your company’s DNA is crucial. Without accurate data, you’re operating in the dark.

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

Barnett Waddingham (2024) The Balancing Act

https://www.theguardian.com/commentisfree/2024/sep/13/bankrupt-student-mental-illness-britain-universities-young-people