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Employers fail to understand scope of mental health crisis as absence surges

by Benefits Expert
23/09/2024
mental health
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There are “significant gaps” in employer understanding of the scope and impacts of mental ill-health at work, according to fresh research.

A survey of 301 HR directors and c-suite business leaders in the UK has found that 73 percent think their companies are ready to manage mental health challenges, yet less than half collect data on employee mental health conditions.

Close to two-thirds (64 percent) of businesses saw an increase in absenteeism as a result of mental health issues, with younger employees most affected.

Two-fifths (40 percent) of businesses view boosting their mental health support as a strategic priority. A similar proportion (38 percent) said they are planning to implement mental health support programmes, while others are adopting phased returns to work (34 percent) and offering more flexible working (31 percent). 

‘Significant gaps’

Consultancy Barnett Waddingham, which commissioned the survey, said findings that the majority of businesses surveyed are not collecting comprehensive data around mental health and its impacts on their employees highlights “significant gaps in understanding the full scope of the issue”.

Even though employers and leaders are facing a rise in sickness absence caused by mental ill-health, only 41 percent of respondents said their firm had increased spending on mental health support. Less than a third (28 percent) said they had increased training to manage mental health issues.

Sixty-nine percent of business leaders think mental health services are well-used by staff aged 25-34, as they told researchers that they had seen younger staff using them the most.

Researchers said that mental health issues were “most prominently observed in this younger cohort”, with 51 percent of business leaders reporting a significant impact in this age group, in contrast to decreasing concerns among older colleagues.

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Paucity of data tracking

However, despite the data showing the prevalence and potential impact of mental health, researchers said that few businesses are actively tracking data that relates to these issues.

The survey found that just 44 percent actively collect data on incidences of anxiety, and the same proportion (44 percent) on depression, while 46 percent collect data on stress-related disorders. 

Barnett Waddingham said that the paucity of data collection is holding back efforts to accurately assess the scope of the problem, identify employees at risk and implement effective support measures.

Neurodiversity data critical

Given that mental health can intersect with neurodiversity, the consultancy said it was “critical that employers are aware of the neurodiverse make-up of their staff”. 

However, 28 percent of respondents told the survey their organisations have had no incidences of learning difficulties, while 23 percent reported no incidences of neurodiversity like ADHD or autism. In addition, 38 percent of business leaders do not think they’ve had any incidents of cognitive conditions like dementia or Alzheimer’s at work. 

The consultants said these findings show that many leaders are “operating in the dark when it comes to conditions that may impact mental wellbeing at work”.

By failing to track mental health conditions, businesses may miss opportunities to address issues early, potentially resulting in increased absenteeism, decreased employee morale, and reduced productivity, consultancy said.

‘Naive optimism’

Julia Turney, partner, platform and benefits at Barnett Waddingham, said: “It’s clear there is a stark clash between employers’ perceptions of their mental health support structures, and the reality. Business leaders are operating with naive optimism that they have the right systems and processes in place to support their staff, but they’re working blind – they don’t have the visibility of data or metrics needed to make change. 

“This is more timely than ever. The UK’s mental health crisis is having a tangible impact on our country’s growth and productivity. With a significant portion of the 2.8 million economically inactive Brits off work due to mental health concerns, this must be a priority to relieve pressure on the NHS, improve day-to-day health and wellbeing, and get the country back to work.”

Turney said that as employers are a critical part of the ecosystem, when they lack accurate insights into workforce challenges, effective solutions are impossible.

“By implementing robust data capture and analysis of time off sick, causation, and benefit impact, organisations can better understand and improve employee wellbeing for the long term,” she said.

‘Plaster over NHS cracks’

“The buck does not stop with businesses. The autumn budget is an opportunity for progressive policy and proactive intervention from the government.

“Employers are leaning on private medical insurance to plaster over the cracks in the NHS’s support of mental health, financially justified as being better than dealing with absence.

“But medical inflation continues to increase, and costs are becoming unwieldy. The government could support by offering tax rebates on preventative health benefits, guidance around employee care pathways, and incentives to insurers to invest in research and innovation.”

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