Why Workplace Mental Health Is Not a “Nice to Have” — It’s a Global Economic Imperative
- Dave Knight
- Oct 1, 2025
- 5 min read
In the wake of Sarah McIntosh’s case for mental health first aid to be mandated in the workplace, (made at the Labour Conference this week, and just ahead of World Mental Health Day on the 10th October), it’s important to recognise that, in many organisations, mental health still sits awkwardly as a “soft” issue.
Mental Health awareness is still being seen as something nice to acknowledge, but secondary to deadlines, operations, and KPIs.
Poor mental health is not just a human cost; it’s a drag on competitiveness, innovation, and growth.
I’ve been advocating for mental health resources to be readily accessible in the workplace for many years. It’s fantastic that voices like Sarah McIntosh, (MHFA England), and others are urging a shift in mindset.
The Economic Toll of Poor Mental Health
Productivity loss, absenteeism & presenteeism
A widely cited figure is that depression and anxiety cost the global economy approximately US $1 trillion per year in lost productivity. In the UK alone, the cost to employers from poor mental health — via absenteeism, presenteeism, turnover and loss of talent — is estimated at £51 billion annually.
Presenteeism (being physically at work but mentally impaired) often dwarfs the cost of pure absence.
In the U.S., workers reporting fair or poor mental health take about four times more unplanned absences than those in good mental health.
These are not abstract statistics — they translate into missed client deadlines, project delays, quality issues, and burnout among high-performing staff who pick up the slack.
Economic inactivity, welfare & lost tax revenue
Beyond workplace impacts, poor mental health contributes to economic exclusion.
Sarah McIntosh of MHFA England warns that rising mental ill health is fuelling increased economic inactivity — people who want to work but can’t due to lack of support or long waiting times for treatment.
In the European context, David McDaid and Martin Knapp observe that “the loss of the opportunity to work is by far the single greatest contributor to the costs of poor mental health.”
A recent report for England estimates that mental illness costs the country £300 billion annually — broken down into human costs, economic costs (lost output, business loss), and health & care costs.
This means governments are under pressure: more people on benefits, fewer in work, lower tax revenue, and greater public sector costs for treatment.
Long-term consequences: talent, innovation, inequality
Persistent mental health issues often reduce lifetime productivity, constrain career progression, and even lead to early exit from the labour force.
In sectors reliant on knowledge work, the hidden “drag” of lower cognitive resilience, reduced creativity, and decision fatigue becomes particularly dangerous.
There is also a feedback loop: poor mental health disproportionately affects marginalised groups, exacerbating inequality and eroding social mobility.
If we view human capital as foundational to economic competitiveness, then mental health is part of that infrastructure. Neglecting it is like allowing roads or bridges to crumble — eventually, the economy feels the cost.
Why Workplace Access to Mental Health Resources Must Be Core Strategy
If the costs are so high, why haven’t all organisations fully embraced mental health support? The truth is, in many places it is still framed as discretionary — a “perk” rather than a fundamental capability.
There are so many arguments for elevating it to a strategic priority:
1. Return on investment is positive
MHFA England references research showing that for every £1 spent on mental health programmes, employers often see about £5 in return via improved engagement, reduced turnover, and fewer absences.
More generally, interventions in the workplace (prevention, early detection, support) are often cost-effective when compared to the downstream costs of full-blown illness.
2. Employees expect it — and compete on it
In her commentary, Sarah McIntosh makes the point that employees increasingly expect their employer to care about mental wellbeing — especially younger generations.
Omission of mental health support can become a differentiator in talent attraction and retention.
3. It’s about structural access, not token gestures
It’s no longer enough to say “we care.” The real work is in making resources accessible — training managers, embedding peer support, ensuring confidentiality, navigating internal stigma, offering EAPs or in-house counselling. McIntosh emphasises that people need to feel safe to bring their “whole self” to work.
The existence of wellbeing policies is not sufficient. A recent academic study finds that accessibility of those policies (i.e. making them usable in practice) has a stronger effect on reducing absenteeism than mere presence.
4. Mental health is tied to the quality of work design and culture
Many mental health issues in the workplace stem not from individual pathology, but from poor work environments — high demand, low control, unclear expectations, lack of autonomy, job insecurity, poor leadership.
McIntosh stresses that “psychological safety” is critical — employees need to know they won’t be punished for speaking up, asking for help, or taking mental health breaks.
Cultural shifts must accompany service provision for support to be effective.
5. Risk mitigation and resilience
Organisations without robust mental health support expose themselves to reputational risk, legal exposure (e.g. duty of care, health & safety), and talent flight.
In times of disruption — economic turbulence, pandemics, remote/hybrid transitions — the stress load increases, and having resilient systems in place becomes critical
Voices to Amplify & Practical Steps
Sarah McIntosh & MHFA England
In her role as Chief Executive, McIntosh frequently highlights that mental health is not optional — “the question is not whether companies can afford to maintain these benefits, but whether they can afford not to.”
In a recent interview, she points out that many people are trapped between needing help and not being offered the right support at work — leading to exit rather than accommodation.
In a MHFA England roundtable, a clear message came through: “People are not a cost — they are an investment.”
Other voices & thought leaders
António Horta-Osório (former CEO, Lloyds) has publicly spoken about how pressure at the top impacted his own mental health and how that drove Lloyds to invest in mental health first aid for staff.
The academic literature is robust: the link between working conditions and psychological distress, the economic burden of mental disorders, and the case for intervention have been explored in major reviews and meta-analyses.
Call to Action: What Leaders Must Do (Now)
Audit your mental health capacity Evaluate what resources, policies, training, and cultural norms already exist — and where the gaps lie.
Embed mental health into business strategy Move it from HR collateral to part of risk management, leadership development, and operational planning.
Train managers and leaders Many mental health challenges can be prevented or mitigated when managers know how to spot signs, have conversations, and connect employees to support.
Ensure confidentiality and accessibility Programs, hotlines, counselling, peer networks must be easy to access, safe, and de-stigmatised.
Measure and iterate Track metrics (absenteeism, turnover, employee surveys) and treat mental health investments like other performance levers.
Cultivate a psychologically safe culture Encourage dialogue, vulnerability, and learning over blame.
Partner with external experts Organisations like MHFA England, external EAP providers, mental health charities or clinical partners can support scale and quality.
In summary: the case for mental health access in the workplace isn’t just emotional — it’s economic, strategic, and urgent. As Sarah McIntosh reminds us, every organisation must ask: Can we afford not to make this a priority?
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