Poor mental health costs UK employers up to £56 billion a year

• Third in a series of reports found an increase of 25% in the cost of poor mental health to employers compared to 2019, based on a new Deloitte study.
• New Deloitte survey also found that 28% of employees have either left in 2021 or are planning to leave their jobs in 2022, with 61% citing poor mental health as the reason they are leaving.

New mental health research from Deloitte has revealed that the cost to employers of poor mental health has increased, to up to £56bn in 2020-21 compared to £45bn in 2019.*

The great resignation

The overall increase in total costs is due to higher staff turnover. Deloitte’s survey found that 28% of UK employees either left their job in 2021 or they are planning to leave it in 2022, with 61% of respondents saying this was due to poor mental health.

Young people (18-29 years old) were found to be most likely to have moved jobs or be considering a job move. One in five (21%) young people surveyed said they were planning to leave and one in four (24%) said they had intentionally left their job in the past 12 months. Of those who had intentionally left or planned to leave their job, two in three (65%) said this decision was driven by poor mental health.

Elizabeth Hampson, Deloitte director and author of ‘Mental health and employers: the case for investment - pandemic and beyond’, said: “We have seen poor mental health costs UK employers up to £56 billion a year, based on a new Deloitte survey, an increase of 25% in the cost of poor mental health to employers compared to 2019. Mental health issues are a strong driver for the ‘Great resignation’. Long hours, increased stress and job insecurity have had a detrimental impact on quality of life during the pandemic. People are leaving their jobs, re-evaluating their careers and changing occupations in large numbers.

“Burnout among employees, such as feelings of exhaustion, mental distance from the job and reduced job performance, have been more evident during the pandemic. Measures by employers to improve mental wellbeing should not only benefit employees themselves but should also reduce employment costs such as recruitment costs and provide broader societal benefits.”

Jackie Henry, managing partner for people and purpose at Deloitte UK, said: “Wellbeing must become a strategic priority for organisations of every size – not only to support employees experiencing anxiety and stress, but also to prevent people from becoming overwhelmed and overworked in the first place. Covid-19 has given us an opportunity to tackle stigma and improve awareness. Leadership should set the tone at the top: whether continuing to invest in training to help managers and employees spot signs of poor mental health and understand how to reach their employees and help.”

Emma Mamo, Head of Workplace Wellbeing at Mind, said: “It’s shocking but not surprising that the cost of poor mental health to employers is now up to a huge £56 billion per year. We know that the pandemic has taken a huge toll on the mental health of the nation, including our colleagues. A 2021 survey by Mind of over 40,000 staff working across 114 organisations taking part in our Workplace Wellbeing Index revealed that two in five (41 per cent) employees said their mental health had worsened during the pandemic.

“The lockdowns and restrictions gave lots of us more time to think about what we wanted from our lives and our careers, and as a result more of us decided to leave or move jobs. Recruiting and retaining talent is hugely important to employers, and we know employers who invest in staff wellbeing are more likely to report having staff who are happy, productive and less likely to leave. This latest report from Deloitte suggests employers see a return of £5.30 on average for every £1 invested in staff wellbeing so it’s never been timelier to prioritise staff mental health, especially given staff are once again adjusting to new ways of working, with many employers trialling hybrid working.

“Mind can help employers of all sizes and sectors to create mentally healthy workplaces, including through our training and the resources available via our website.”

-ENDS-

Notes to editors

This report reviews the effects of the COVID-19 pandemic on the mental health of employees and on the costs to employers. The findings are based on a YouGov survey of nationally representative sample of 3599 individuals in the UK. The survey was conducted in Autumn 2021. The findings fed into Deloitte’s models for the costs to employers of poor mental health and the returns on investing in support measures to improve mental wellbeing.

*These estimates were based on the results of an updated version of Deloitte’s model that calculated the costs of poor employee mental health. Unlike in 2019, this year’s figures include YouGov consumer research
** Respondents were asked to choose their top three new way of working that would improve their mental health, wellbeing and stress.

About Deloitte

In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.For more information, please visit www.deloitte.co.uk

About Mind:

• We’re Mind, the mental health charity. We provide advice and support to empower anyone experiencing a mental health problem. We campaign to improve services, raise awareness and promote understanding. We won't give up until everyone experiencing a mental health problem gets both support and respect. mind.org.uk
• Please note that Mind is not an acronym and should be set in title case.
• Mind has a confidential information and support line, Mind Infoline, available on 0300 123 3393 (lines open 9am - 6pm, Monday – Friday)
• Our online mental health community Side by Side is a safe space where anyone aged 18 and over with experience of a mental health problem can share their story, connect with others, access Mind’s wider information and resources, and give support in return. Find out more at www.sidebyside.mind.org.uk
• Mind’s income has been affected by coronavirus, largely due to the temporary closure of our charity shops across England and Wales, and the cancellation or postponement of major fundraising events. As a charity, we rely on the generosity of individuals to be able to continue in our fight to make sure everyone with a mental health problem gets both support and respect. Donate to us by visiting www.mind.org.uk/donate
• Contact Mind’s Media Team for interviews or further information on 0208 522 1743. For out of hours support, call 07850 788 514 or email media@mind.org.uk.