The Hidden Cost of Poor Mental Health in the Workplace

The Hidden Cost of Poor Mental Health in the Workplace

When we think about the cost of poor mental health at work, sickness absence is often the first thing that comes to mind.

But the true impact can be much wider.

An employee does not need to be absent from work for their mental health to affect them, their colleagues or the organisation. Stress, anxiety, burnout and poor mental wellbeing can quietly influence productivity, decision-making, communication, relationships and engagement long before someone reaches the point of taking time off.

For businesses, this means the cost of poor workplace mental health can often be hidden in plain sight.

Presenteeism: At work, but struggling

One of the less visible challenges is presenteeism – when an employee continues working despite not being well enough to perform at their usual level.

They may still attend meetings, answer emails and complete tasks, but concentration, motivation and decision-making can become more difficult.

Because the employee is technically still “at work”, this can be much harder for organisations to recognise than sickness absence.

Over time, reduced productivity across several employees can have a significant impact on a business.

Increased sickness absence

If stress or poor mental health is not addressed early, employees may eventually reach a point where they need time away from work.

Longer-term absence can create additional pressures, including:

• – Increased workloads for colleagues

• – Overtime or temporary staffing costs

• – Delays to projects or services

• – Additional management time

• – Reduced team morale

• – Pressure on remaining employees

This can sometimes create a cycle where increased pressure on the wider team contributes to further stress.

Losing good people

Employees increasingly consider workplace culture and wellbeing when deciding where they want to work.

If someone consistently feels overwhelmed, unsupported or unable to speak openly about their mental health, they may eventually decide to leave.

Replacing an experienced employee involves more than recruitment costs. Organisations can also lose knowledge, relationships, experience and productivity while a replacement is recruited and trained.

Creating a workplace where people feel valued and supported can therefore play an important role in both recruitment and retention.

The impact on teams

Poor mental health rarely affects just one person.

When someone is struggling, communication may become more difficult, relationships can become strained and other team members may take on additional responsibilities.

Managers can also feel the pressure.

Without appropriate training, a manager may recognise that something is wrong but feel unsure about what to say, what support they should offer or where their responsibilities begin and end.

Giving managers the confidence to recognise potential signs of poor mental health and have appropriate conversations can make an important difference.

Productivity and performance

Mental wellbeing and workplace performance are closely connected.

When employees feel psychologically safe, supported and able to manage the demands placed upon them, they are more likely to engage positively with their work.

When people are consistently stressed or overwhelmed, even simple tasks can become more difficult.

Businesses may begin to see:

• – Missed deadlines

• – Reduced creativity and problem-solving

• – Increased mistakes

• – Lower engagement

• – Communication difficulties

• – Reduced customer service

• – Higher staff turnover

Individually, these issues may seem relatively small. Collectively, they can have a significant impact on an organisation.

Prevention is better than crisis management

Workplace wellbeing should not begin when somebody reaches breaking point.

Organisations can take proactive steps to create environments where employees feel able to talk about their wellbeing before difficulties escalate.

This might include regular wellbeing conversations, appropriate workloads, clear communication, manager training, access to professional support and creating a culture where asking for help is viewed positively.

Importantly, supporting workplace mental health does not mean managers becoming therapists.

It means creating a workplace where managers know how to recognise when somebody may be struggling, feel confident starting a conversation and understand where to signpost employees for appropriate support.

Workplace wellbeing is a business investment

It can be tempting to view workplace wellbeing initiatives as an additional expense.

But perhaps the more important question is:

What is poor employee wellbeing already costing your organisation?

The answer may be hidden within absence figures, reduced productivity, staff turnover, disengagement and managers spending increasing amounts of time supporting struggling teams.

Investing in mental health awareness, preventative support and a positive workplace culture is not simply about doing something good for employees.

It is about building healthier, more resilient and sustainable organisations.

At Eudaemonia Wellbeing Centre in Norwich, we support organisations to take a proactive approach to workplace wellbeing through mental health training, Mental Health First Aid and wider workplace wellbeing support.

Whether you are beginning your workplace wellbeing journey or looking to strengthen the support you already provide, starting the conversation is an important first step.

Eudaemonia Wellbeing Centre | Norwich
Supporting healthier people, teams and workplaces.