Understanding the Value of Investing in Mental Health: Insights from Deloitte’s 2024 Report
Understanding the Value of Investing in Mental Health: Insights from Deloitte’s 2024 Report
Written by: Paula Antalffy 4-5 minute read
Mental health is not a topic which employers can ignore in 2024. This subject, once seen as taboo, is now very much at the forefront of both managements’ and employees' minds. For many employees getting mental health support is now a key benefit that is non-negotiable when looking for a new place to work.
The importance of creating a mentally healthy workplace has never been clearer. In a recent report published by Deloitte UK, about mental health and employers, they shed light on the current state of mental health in the workplace and share the significant benefits that come with investing in mental well-being.
Research Foundation
Deloitte’s findings are based on a YouGov survey from October 2023 - which involves 3000+ adults across the UK. The survey explores the perceptions of mental health, its impacts of mental health (particularly of children and young people) affects of working parents and the workplace at large.
Key Findings and Statistics
Poor mental health’s financial impact
One of the key findings of the Deloitte survey shows that having a workforce with poor mental health, has a direct financial impact on employers. It is estimated that poor mental health in the UK workforce costs employers approximately £51 billion annually.
What is this cost made up from?
The report highlights 3 key causes:
Absenteeism: These are the days absent from work due to mental health-related reasons. The report shows that this is a significant indicator of an employee’s well being - as frequent absenteeism can reflect ongoing mental health challenges that make it difficult for the employee to attend work consistently.
Presenteeism: This occurs when employees attend work despite suffering from mental health challenges, which results in them being less productive than usual. Unlike absenteeism, presenteeism is often harder to detect because the employee is physically present but may not be performing at their full capacity. The Deloitte report identifies presenteeism as the largest contributor to the overall cost of poor mental health to employers, contributing a staggering £24 billion per year.
Staff Turnover: This term refers to employees leaving their jobs, which can be partly or entirely due to poor mental health. Staff turnover incurs significant costs for employers because it involves expenses related to hiring and training new employees, as well as the loss of productivity during the transition period.
Poor mental health’s impact of children
The report highlights the additional burden faced by working parents, particularly those concerned about their children's mental health. According to the survey, nearly half of the working parents (46%) are worried about their child’s mental health, and this concern has a direct impact on their work performance.
Deloitte estimates that these concerns cost UK employers an additional £8 billion annually. This figure is a sobering reminder of the interconnectedness of employees' personal and professional lives. Employees who face more stress in-life—whether this stems from their professional or personal life—will have a more difficult time being productive and present in their workplace.
The Business Case for Investing in Mental Health
While mental health is a pressing issue for many managers and CXOs, making a businesses case from them can often be difficult. This is due to there still being very little research around what the actual return on investment can be.
However, Deloitte’s new report makes a compelling business case for employers to invest in mental health initiatives. On average, businesses can expect a return on investment (ROI) of £4.7 for every £1 spent on mental health support.
It is also important to note, that with this investment in mental health initiatives, the emphasis has to be more proactive and preventative measures such as fostering a supportive workplace culture and providing early intervention programs. The report shows that these initiatives see an especially high ROI, as high at 6.3:1.
For businesses of all sizes, especially enterprise businesses, looking to enhance their workplace well-being strategies, these findings are particularly relevant. By investing in mental health resources and creating a culture that prioritises well-being, companies can not only improve the lives of their employees but also see tangible benefits in productivity, reduced turnover, and lower absenteeism rates.
Supporting Working Parents
Deloitte’s report also sheds light on understanding the challenges faced by working parents in particular. Today, in England, one in five children have a probable mental health condition. This is leading to increasing pressure on parents.
Deloitte’s research found that 21% of parents reported lower productivity at work due to concerns about their child’s mental health, while 20% had to take days off to care for their children.
These findings suggest that employers need to provide more targeted support for working parents. These understandable stresses faced by parents, need to be met head on by creating a culture which understands and accepts these stresses faced by parents - and even celebrates parents who put their children first!
Flexible working arrangements, access to mental health resources for both employees and their families, and a workplace culture that understands and supports the challenges of parenting are all crucial steps employers can take.
Moving Forward: What Employers Can Do
Deloitte’s 2024 report serves as a powerful reminder of the value of investing in mental health. The message is clear: supporting the mental well-being of employees is not just the right thing to do; it’s a smart business move.
So what can businesses do to take actionable steps towards a more supportive culture when it comes to mental health?
Prioritise Mental Health at the Leadership Level: Ensure that mental health is a key agenda item for senior leadership, setting the tone for the entire organisation. Ensure that these efforts are measurable, with key KPIs set out to measure their impact.
Invest in Preventive Measures: Focus on proactive interventions which can aid employees in maintaining their mental health, rather than seeking help once they are facing a crisis. Consider how you can create mental health awareness programs, share appropriate resources, build support groups and initiatives which give mental health support at all stages of life.
Support Working Parents: Recognise the unique challenges faced by working parents and provide them with the necessary flexibility and resources to manage their dual responsibilities. Champion team members for their ability to find a healthy work life balance when it comes to prioritising family and children’s wellbeing - while also being able to find presence and productivity at work.
Promote a Mentally Healthy Culture: Create an environment where employees feel supported and safe to discuss their mental health concerns without fear of stigma. This can come in the form of company support groups, building stronger relationships of trust between managers and employees, creating a culture which champions those who put their mental well-being and more.
Starting Today: How Employers Can Take Action Fast
The insights from Deloitte’s 2024 reports make it clear: investing mental health is not only good for people, but it’s also good for business.
However, creating a company-wide change to create a healthier and more proactive workplace, while also demonstrating a commitment to the well-being of employees can seem like a daunting challenge for any organisation.
For managers looking to take on this challenge regardless, finding tools which help make this translation easier, such as myday can be a phenomenal start.
How does myday help tackle the multifaceted challenges of creating an all around support system for mental health? Well it’s actually quite simple…
All-In-One Wellbeing Platform
myday is an all-in-one, stand alone platform that takes on every aspect of employee wellbeing and mental health with one single tool. We like to think of ourselves as the swiss army-knife of workplace wellbeing. Whether you want to build a better community, support your team’s mental health and personal growth more effectively or have a true, meaningful impact on the wider community around you - we can help!
Here’s how we do it through our three simple pillars:
Community: Building Connections
In today’s hybrid and remote work environments, fostering a sense of community is essential. myday facilitates this by providing moderated, safe spaces where employees can connect and support each other on topics like mental health, parenting, women’s health, and LGBTQIA+ issues.
Employees can engage through kudos, shares, and comments within groups they join or create. Plus, our resource library offers a wealth of information to support mental health, personal development, fitness, and more.
Impact: Driving Positive Change
Employees are more engaged when they feel they’re making a difference. myday empowers your team to support causes they care about through our Planet Points system.
Team members can select meaningful causes from a curated list and earn points by completing challenges, participating in daily activities, sending kudos, joining communities, and much more. These points can then be converted into real-life donations to fund their chosen causes.
The platform also offers management the opportunity to measure the impact of their own internal initiatives getting real time ROI metrics, and KPIs to measure how their well-being initiatives are affecting employee well-being.
Activity: Energising the Workplace
Physical activity is a cornerstone of overall wellness, especially when done together. myday promotes this with engaging activity challenges that keep everyone motivated.
Whether it's solo efforts, 1v1 competitions, team, or company-wide challenges, participants can track their progress with weekly trophies and keep the momentum going through kudos, comments, and shares.
With myday, creating a healthy, connected, and motivated workplace has never been easier.
Want to learn more about myday and how we can help elevate your wellness strategy to the next level? Book a call with our team today!
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