The 2017 report, Thriving at Work, from the Stevenson/Farmer review of mental health and employers, estimated the cost of presenteeism caused by poor mental health is £17bn to £26bn per year, far more significant than the estimated £8bn cost of absenteeism.
Meanwhile, a Money and Mental Health Policy Institute survey estimated 2.3m employees in the UK are experiencing mental health problems that affect the amount of paid work they could do.
The Department of Health provides a broader view of all impacts of mental ill health, which it describes as the single largest cause of disability in the UK.
Costs in England alone are estimated at £105bn each year, which includes the direct costs of services, lost productivity and reduced quality of life, as well as the costs of reduced educational outcomes and employment and increased crime.
How does bad culture manifest?
A conversation with a fellow train passenger who turned out to be HR director at a 500-employee call centre gave me great insight into the realities of her workforce.
Many of them had no family network. Some were migrant workers worried about Brexit. Some were “sofa surfing”, others were self-harming or dependent on drugs or alcohol and not turning up to work or in no fit state to be there.
Most had virtually no money at the end of the month or were borrowing to meet their needs.
Key Points
- Productivity is a major issue for UK employers
- Presenteeism is more expensive than absenteeism
- Employers can do much to help stressed out employees
She said her team now spends more time trying to get people into work and ensure they were productive than they have ever had to do.
She was already aware of issues, working closely with her Employee Assistance Programme (EAP) providers and health and wellbeing advisers.
But getting her organisation to spend on employees was a constant challenge as they are seen as a cost rather than profit centre.
Are things bad for every employer?
Employees tend to be a diverse bunch.
Employers need to assess what their specific workforce challenges are and try to remedy them. There is no one-size-fits-all solution.
Debt and financial concerns are a real issue for UK workers.
The Joseph Rowntree Foundation estimates one in eight employees are working but living in poverty, while a study by Cardiff University found up to 60 per cent of households in poverty include someone who is working.
In late 2017, KPMG reported one in 5 people (21 per cent) in the UK are still earning below the real living wage, meaning an estimated 5.5m employees are struggling to get out of in-work poverty.
