As businesses continue to navigate an increasingly complex and fast-paced world, the importance of prioritising employee mental wellness has never been more critical for long-term success.
Once seen as a ‘nice to have’, and rarely talked about, mental health support is now recognised as a key driver of productivity, creativity, and overall business performance. But businesses have to create change in the right ways in order to enjoy these benefits.
Nathan Shearman, director of therapy and training at Red Umbrella, warns that “mental wellness is no longer something businesses can afford to overlook; it’s a core element of a healthy, sustainable workplace. Prioritising mental health isn’t just about supporting employees – it’s about driving the success of the entire organisation.”
While mental wellness has historically been deprioritised in favour of other business-critical needs, companies are now realising that their employees’ mental health directly impacts key outcomes such as productivity, engagement, and retention.
Shearman explains: “When employees are stressed or burnt out, their productivity and creativity take a hit. They’re unable to concentrate, decision-making becomes impaired, and mental fog sets in – this has a direct impact on the bottom line.”
Prolonged stress can eventually lead to burnout, causing extreme fatigue and making it difficult for employees to engage with their work. In turn, this leads to absenteeism and, often, challenges with re-engagement upon return.
“We’re seeing more and more that employees are not willing to stay with companies that don’t actively address mental wellness,” says Shearman. “This isn’t just about retaining current talent, it’s also about attracting new talent. In today’s job market, candidates are looking for employers who recognise the importance of mental health.”
In addition to the impact on retention, employee burnout and stress also affect recruitment costs. “High turnover creates a significant drain on resources,” Shearman states. “Recruiting and training new employees is expensive, and that cycle only worsens when staff disengage due to a lack of support. This is why investing in mental health initiatives is essential for maintaining a skilled and engaged workforce.”
And, contrary to what some may believe, businesses that invest in mental health support do see a tangible return on their investment. A study by Deloitte shows that the ROI for mental health intervention is around five to eight times the initial investment.
“The misconception is that mental health services are expensive, but the real cost is in failing to provide that support,” Shearman adds. “The return on investment is clear: improved engagement, reduced absenteeism, and a more loyal, productive workforce.”
One often-overlooked aspect of mental wellness in the workplace is Employee Assistance Programmes (EAPs). Many businesses provide these services, but uptake remains low – around 3-5% on average. This is often because these programmes are not bespoke or tailored to the needs of the organisation.
Shearman emphasises: “Mental health needs are different in each organisation, which means offering the same off-the-shelf resources isn’t going to produce any real, positive change in an organisation. Understanding what staff need and then tailoring support to those needs is the only way forward.”
Further, the stigma surrounding mental health often prevents employees from seeking support, despite one in six people facing mental health struggles in any given week.
Shearman comments: “The key to increasing engagement with EAPs is reducing the stigma around mental health. Effective mental health training not only empowers employees to seek help when needed but also creates a culture where mental wellness is openly supported. This leads to increased usage of EAP services, maximising the return on investment in these programmes.”
Prioritising mental wellness is no longer optional for businesses that aim to remain competitive in the modern workplace. “When businesses invest in their employees’ mental health, they are investing in their own sustainability,” concludes Shearman. “A healthy, engaged workforce is key to long-term success. If you want your business to thrive in today’s world, supporting employee mental wellness should be a top priority.”
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