Profits and productivity are vital for a company’s survival. Thankfully, more employers are waking up to the simple truth: if you want your business to do well, your people need to feel well.
When faced with demands for better wellbeing initiatives and a positive working environment, employers can often forget the significant impact of employee mental health on their bottom line. But people are a business’ most important asset, and prioritising wellness in the workplace isn’t just a moral imperative – it's a strategic move that can enhance employee engagement, boost overall company performance, and ultimately lead to a more sustainable and successful business.
Mental health isn’t just a nice-to-have – it’s a necessity
In Mental Health UK’s ‘The Burnout Report’ 2025, nine in 10 UK adults reported experiencing high or extreme levels of pressure or stress in the past year, including a 4% increase in people aged 18-44 saying they had taken time off work due to poor mental health. The relationship between a company's investment in its employees' wellbeing and the tangible returns it can yield is complex and multifaceted, but businesses that actively invest in their people by fostering a mentally healthy environment can see far-reaching positive outcomes.
Attract (and retain) the best talent
Talent is a valuable commodity, especially within the ever-changing technology, biotech, gaming, and creative industries. In today’s volatile job market, where uncertainty looms for both employers and candidates, companies that prioritise mental health gain a competitive edge. The best people want to work for the best companies: it’s as simple as that. They seek workplaces that nurture their mental wellbeing, as well as their professional development. Companies that show this commitment can attract top talent and set themselves apart from the competition.
Plus, investing in mental health reduces turnover rates. In Mind’s ‘The Big Mental Health Report 2024’, one online community participant shared how she felt she didn’t receive “much empathy” from management following an episode of bipolar disorder, adding: “It came to a crunch when the only thing I could do was resign.” Employees who feel valued and supported are more likely to stay with a company, leading to cost savings associated with recruitment, onboarding, and training.
Fewer sick days and costs saved
According to the Health and Safety Executive (HSE), 16.4 million working days were lost in the UK due to stress, depression, and anxiety in the year ending March 2024, accounting for 55% of all working days lost due to work-related ill health. This absenteeism costs companies serious time and money.
By providing support and resources for mental health, employers can help their staff manage stress, anxiety, and depression more effectively, reducing the number of sick days required. This not only helps your people, but also improves a company's overall performance by ensuring a full and healthy workforce.
Increase productivity, creativity, and decision-making
The impact of poor mental health in the workplace is not only seen in absenteeism but also presenteeism – when people show up to work but are mentally disengaged, leading to reduced productivity and performance. When employees are struggling mentally, it becomes harder to contribute fully to their roles and solve problems, and overall work quality can suffer.
We know in ourselves that we do our best work when we’re feeling mentally healthy. But study after study proves it: when employees' wellbeing is prioritised, they’re more engaged and motivated. They show heightened creativity, make better decisions, and contribute more effectively to their teams and projects. So, by creating an environment that supports wellbeing, companies can see a significant boost in overall productivity.
So, what can businesses actually do to prioritise mental health?
Employers must take action to create a workplace that prioritises wellbeing. Proactively implementing strategies, plans, or policies – and regularly measuring and reviewing them to prevent (or treat) chronic stress and burnout – is key to promoting wellbeing and company success.
Create a healthy culture of openness
Creating an environment that fosters a sense of belonging and connection among employees is essential. In Mind’s ‘The Big Mental Health Report 2024’, many employees reported avoiding disclosing mental health struggles due to fearing negative treatment, with those who had negative past employer experiences feeling even more reluctant. So, encourage conversations. Normalise mental health check-ins. Make it clear that speaking up about wellbeing struggles won’t affect someone’s career.
Lead by example
Your employees are watching you. If your CEO is wearing round-the-clock work as a badge of honour, that sets the tone for everyone else. Leadership needs to model healthy behaviours, such as taking breaks and balancing work with life. Leaders should encourage their teams to maintain clear boundaries, rest and screen breaks should be actively promoted, and out-of-hours emails should not be expected. Companies should also measure productivity based on results and output, rather than mere presence in the office.
Encouraging employees to take time off and monitoring their holiday balances is equally vital. Following our Workplace Wellbeing Audit, science and technology company GV Health discovered its team wanted more work-life flexibility, and so added an option for employees to buy and sell holidays alongside other new initiatives, creating a happier, healthier workforce.
Train managers in mental health practices
It’s encouraging to see six out of 10 working adults feel comfortable letting their line manager or senior leader know about high or extreme levels of pressure and stress at work, according to Mental Health UK’s ‘The Burnout Report’ 2025. But this still leaves around a third of workers (32%) who don’t feel comfortable raising these concerns.
Managers play a key role and should be well-versed in policies, capable of supporting people, and fostering an open culture. Providing the necessary training and support is crucial to ensure they are:
Communicating openly and encouraging team members to talk.
Checking in with their team and colleagues regularly to offer support.
Collaboratively setting clear expectations and goals.
Valuing mental wellbeing as much as physical health (because it is).
Staying informed about mental health and company resources.
Being compassionate and supportive leaders/colleagues.
Motivating the team while giving clear direction.
Getting to know their team, recognising that everyone is different.
Developing strategies to support specific needs, from neurodiversity to menopause support.
Being aware of how their leadership style and energy can impact others.
Looking after your people is looking after business
Employee wellbeing goes far beyond simply checking a box for corporate responsibility. It's not enough to pay lip service to it – companies must take concrete steps to create a supportive and inclusive environment. However, by cultivating a healthy company culture, creating an open dialogue about mental health, and providing strong leadership that values wellbeing, businesses can position themselves as industry leaders and attract top talent.
It's time for organisations to stop seeing mental health initiatives as an expense and start recognising them for what they really are: the smartest investment a company can make. Investing in mental health delivers a return that goes beyond pounds and pennies and contributes to the overall success and sustainability of the business. When your people are healthy and happy, they stick around, profits and productivity increase, and business thrives.
There’s no one-size-fits-all solution to resolving HR challenges. By getting under the skin of your current workplace dynamics, and the specifics of your wellbeing initiatives to-date, we can develop a tailored approach that drives tangible results.