New research from Deloitte highlights the undeniable link between employee mental wellbeing and business performance. For every £1 invested in workplace mental health initiatives, employers see an average return of £4.70 in increased productivity, lower absenteeism, and improved staff retention.
The cost of poor mental health to UK employers now stands at £51bn annually, a slight decrease from £55bn in 2021 but still a significant increase from £45bn in 2019. The largest cost driver? Presenteeism, where employees work while unwell and perform below their full potential, which alone costs businesses £24bn per year.
The Growing Cost of Burnout and Mental Health Struggles
Mental health concerns are growing, with 63% of employees experiencing at least one sign of burnout, up from 51% in 2021. The leading stressors affecting employees include:
- The rising cost of living (60%)
- Personal and family finances (46%)
- Job security (22%)
The figures are even starker for working parents. 46% are worried about their children’s mental health, which is costing UK businesses £8bn per year due to performance issues, time off work, or employees leaving their roles altogether.
10% of working parents take up to five days off per year to support their children, while 1 in 100 have left their jobs due to the strain of juggling work and caregiving. Despite these challenges, many parents are reluctant to seek employer support, instead relying on external resources.
Why Employers Must Take Action
Deloitte’s findings reinforce the financial and ethical imperative for businesses to invest in mental health initiatives. Early interventions—such as cultural shifts towards openness, education, and proactive mental health policies—offer the highest return on investment.
“The business case for prioritising mental health in the workplace is clearer than ever,” said Elizabeth Hampson, Deloitte partner and lead author of the report. “Employers who actively support their teams, including working parents, can reduce absenteeism, presenteeism, and turnover—all while fostering a healthier, more engaged workforce.”
Next Steps for Employers
To maximise return on investment and create a healthier workplace, businesses should consider:
- Embedding mental health support into workplace culture and employee engagement
- Offering flexible work arrangements to help parents balance responsibilities
- Providing access to employee assistance programs and wellbeing resources
- Encouraging open conversations around mental health
With the cost of poor mental health on the rise and burnout increasing, organisations can no longer afford to ignore this issue. Investing in mental wellbeing and happier teams isn’t just good for employees—it’s smart business.
The findings in this report are based on a survey of 3,156 working adults, including 1,834 working parents, conducted by YouGov on behalf of Deloitte. Deloitte’s research includes a literature review of 26 studies since 2011 that report financial returns on workplace wellbeing interventions, averaging the ROI to present the £4.70 return figure.
