£226 billion gross-value-added contribution to UK GDP in 2015. To put this into perspective, without them, the economy would shrink by 12.1%.13
Businesses with developed well-being programmes have shown that it is possible to reduce the costs associated with staff mental health problems. If just 10% of the costs were mitigated, Oxford Economics calculate the UK economy could be £3.3 billion larger than it otherwise would be in 2030 (0.1% of forecasted GDP that year).14
Benefits to Business
Despite all the evidence showing the costs to employers and the economy of poor mental health in the workplace, barriers to investment in workplace mental health remain, including a lack of evidence that such investments can have a positive impact on the bottom line.
However, employers who do embark on well-being programmes believe there will be benefits to investing in this way. According to a global survey by XEROX in 2016,15 increasing employee productivity (59%) is now the top objective of a well-being programme, followed closely by improving employee engagement and morale (56%).
Thriving employees not only cost their employers less, they are more productive and more engaged in their work.
According to US research by The Healthways Center of Health Research,16 as well-being increases, direct and indirect costs decrease, and employee performance improves. A 10% increase in well-being was associated with 24% lower presenteeism and 6% more ‘best work’ days per month.
Studies around the world have started to yield real-world evidence that workplace programmes focusing on enhancing the mental and emotional well-being of employees are an investment that yields valuable returns, rather than a cost (Table 2.3).
Table 2.3 Return on investment: mental health and well-being programmes.
| Source | Detail | ROI |
|---|---|---|
| Deloitte UK17 | Mental Health and Employers ROI analysis (2019) | 5:1 |
| Deloitte USA & Canada18 | The ROI in work health programs (2018) | 2.68:1 |
| PWC Australia19 | Creating a mentally healthy workplace return on investment analysis (2014) | Between 2.3:1 and 14:1 |
The Benefits of Taking Action: A Mentally Fit Workforce
The ROIs in the studies referenced above look at the quantifiable returns of employee wellness programmes in terms of reductions in absenteeism, increased productivity, and reduced turnover. But what of the other benefits? How can we quantify the benefits to an organisation willing to invest beyond the absence of illness and strive for enhancing the mental fitness of their employees? A study conducted for The World Economic Forum20 highlights this perfectly.
Their survey spoke to employees across multiple organisations and asked their view on how their company performs. According to employees in organisations where health and well-being are actively promoted:
Organisations are seen as 2.5 times more likely to be a best performer (in their field).
Organisations are seen as 3 times more likely to be productive.
Organisations are seen as 3.5 times more likely to encourage creativity and innovation.
Organisations are seen as 4 times less likely to lose talent within the next year.
Employees are 8 times more likely to be engaged.
So, the takeaway from this is that thriving employees (those who have benefited from such programmes) are eight times more likely to be engaged employees. Engaged employees bring multiple benefits to organisations. In the United States, a Gallup survey21 highlights the positive metrics associated with being engaged and thriving at work (Figure 2.2).
For instance, take the metric adaptability and think about how this might benefit a company embarking on a restructure. An alarming statistic from research conducted by McKinsey22 shows that there's a 70% rate of failure in business transformations. One of the key reasons stated by McKinsey is, ‘People throughout the organization don't buy in, and they don't want to invest extra energy to make change happen.’ One factor that is frequently undervalued and dismissed is mindset, but we also know that mindset is the most important driver of exceptional strategic execution:
Figure 2.2 Benefits to having engaged employees.
In organisations identified as extremely successful, 72% of respondents noted that the transformation ‘entirely’ or ‘very much’ took mindset into account.
In those organisations identified as not at all successful, this number drops to 8%.
We know from numerous studies that emotional intelligence leads to a better ability to manage our emotions and thoughts, and this ability leads to better mental health outcomes (less stress, anxiety, negative thinking), which both directly and indirectly lead to better performance over time.
In a case study on Unilever (found at the end of this book), where a programme of mental fitness had been undertaken, it was reported that employees embraced the change so successfully that 77% of participants claimed an increase in performance and increased their overall motivation by 15%.
In the UK, the 2020 CIPD Health and Well-Being at Work study23 analysed the impact of well-being initiatives in the private sector. This study found 58% of organisations had better employee morale and engagement, 49% a healthier and more inclusive atmosphere, and 29% reduced work-related stress; while 16% reported better customer service, showing that well-being initiatives really permeate all parts of the organisation.
All these benefits ultimately lead to benefits to shareholders too. According to Deloitte USA,24 companies in the S&P 500 with high health and wellness scores had a stock appreciation of 235% compared to 159% overall.
Through this chapter, we have put forward the huge costs of mental health in the workplace, to the world, and national
