QBE survey reveals the real cost of mental health in the workplace

Authored by QBE Underwriting Manager Steve Field

Employees’ mental health and wellbeing has never been so important, but too many workers do not feel confident reaching out to their employers.

Mental health and wellbeing is under the spotlight. Juggling the pressures of work and home life amid the ongoing pandemic is causing additional levels of stress and anxiety for many workers.

According to QBE research, carried out in the run up to World Mental Health Day, three in ten workers (29%) are currently struggling with their mental health. In particular, younger workers are more likely to say they are in difficulty than older workers (35% of 18-34 year olds vs. 16% aged 55+)

The pandemic is clearly adding to existing pressures, making everyday tasks even more challenging. According to a recent study by the London School of Economics, levels of wellbeing are substantially worse today than just last year, with higher levels of anxiety and lower levels of self-worth, happiness and life satisfaction. It calculates the UK’s wellbeing cost from the pandemic to be around £2.25bn per day from the effect of Covid-19 and social distancing policies.

Reality check

Despite heightened awareness of mental health and wellbeing, QBE’s research reveals that many businesses have some way to go in addressing this critical issue.

One in five UK employees (21%) say that they have not received good workplace support for their mental wellbeing while a similar proportion (22%) do not believe their employer’s concern about mental wellbeing is genuine. These findings mirror a 2019 study from QBE that found a quarter of businesses did not offer any workplace mental health support.

Worryingly, a quarter of workers are hiding mental health challenges from their employers and nearly a third (31%) say they would not feel comfortable disclosing a mental health issue to their employer. One reason for this reticence could be job security.

The study found more than a third (34%) are concerned about their job security, while one in four (25%) fear that disclosing mental health challenges to their employer would put their career at risk.

Business cost

The survey findings are all the more concerning given the huge costs mental health can have on a business. QBE research last year found the cost of failing to support employees with mental health issues was an average £52,000 in lost business or contracts.

An obvious consequence of not addressing mental health is absenteeism. Even before the pandemic, mental health issues were the single largest cause of working days lost in the UK accounting for more than half (54%) of all of work days lost due to ill health.

However, failure to address mental health and wellbeing can have a more complex, less obvious, impact. For example, employees suffering stress, anxiety or depression might not function at full capacity, resulting in lost business opportunities. Some 35% of UK workers admit that their recent performance has fallen short of their usual levels due to mental health problems.

Mental health and wellbeing can also drive human error, a major contributor to workplace accidents and insurance claims. Over a fifth (22%) of employees admit to having made mistakes at work recently because they have continued to work instead of taking time off for the sake of their mental health. Tired or distracted workers can cause serious accidents in the workplace or when driving a company vehicle, fail to properly carry out vital checks and maintenance, or give rise to negligence claims for professional services.

Do as you say

Mental health and wellbeing has gained a higher profile during the pandemic, and many companies say they are addressing this key risk to their business. In reality, many struggle to do so well. Many firms are understandably preoccupied with their survival at this time, and some may just be paying lip service to their employees’ mental health.

In our experience, most companies have good intentions, but in reality good mental health and wellbeing management is not prioritised and does not receive the focus that it merits.

Whether work is causing a mental health issue or aggravating it, employers have a legal responsibility to help their employees.

According to the Health and Safety Executive, work-related mental health issues must be assessed and steps taken to remove it or reduce it as far as reasonably practicable. However, how business should meet such requirements is not clear.

While there is an abundance of information available on mental health and wellbeing, most organisations struggle to create a definitive mental health plan with clear goals and priorities. There are few standards or frameworks for businesses to follow and benchmark their mental health policies and practices. Recognising the gap in guidance, QBE, in conjunction with Mind, has developed a self-assessment tool to enable companies to benchmark where they are on their journey. This is supplemented by a number of tools and services that will help companies implement effective mental health and wellbeing programmes, including strategy development and implementation.

Resilient employees

Our research suggests businesses need to turn words into actions. It is encouraging that more than one third (37%) of workers say their employer is concerned about mental wellbeing and provides good support.

However, clearly there is much more to be done. Yet, addressing mental health in the workplace is a win-win for businesses. For every £1 spent by employers on mental health interventions they get £5 back in reduced absence, presenteeism and staff turnover, according to one recent study

Taking into account the scale of the issue for society and our customers, mental health should be a top priority for any organisation. Even as companies struggle to survive in today’s challenging times, employee wellbeing is the foundation that underpins a business. Longer term, businesses need a resilient workforce that is able to adapt and deal with change, whether in the form of a pandemic, emerging technology or climate change.

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