Bosses blind to mental health crisis as absenteeism soars

New research from Barnett Waddingham reveals a growing disconnect between business leaders' perceptions of their mental health support systems and the reality, as absenteeism due to mental health issues continues to rise, particularly among younger employees.

A recent survey by Barnett Waddingham reveals that while 73% of business leaders feel their companies are well-prepared to manage mental health issues, less than half are actively collecting data on employee mental health conditions, exposing a significant gap in understanding and addressing this growing crisis.

Rising absenteeism due to mental health

• 64% of businesses report a rise in absenteeism related to mental health issues.
• Younger employees, particularly those aged 25-34, are most affected.
• Only 41% of businesses have increased spending on mental health support.
• Just 28% have enhanced training for mental health challenges.

"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."

Data blind spots hindering progress

Despite the increasing impact of mental health on absenteeism, businesses are not collecting enough data:

• Anxiety: Only 44% of businesses track it.
• Depression: Data collected by 44%.
• Stress-related disorders: Slightly better at 46% tracking.

Additionally, many business leaders are unaware of the neurodiverse makeup of their workforce:

• 38% of leaders do not believe they have incidents of cognitive conditions (e.g. dementia).
• 28% have no insight into learning difficulties.
• 23% are unaware of neurodiverse conditions like ADHD or autism.

Addressing the crisis

As mental health issues continue to affect productivity and absenteeism, businesses must prioritise employee wellbeing. According to the survey:

• 40% of businesses see strengthening mental health support as a strategic priority.
• 38% plan to implement mental health support programmes.
• 34% are adopting phased returns to work.
• 31% are offering greater flexibility in working arrangements.

"The UK’s mental health crisis is having a tangible impact on our country’s growth and productivity. This must be a priority to relieve pressure on the NHS, improve day-to-day wellbeing, and get the country back to work."

The call for government action

Julia Turney also highlights the need for government intervention in the upcoming Autumn Budget to support businesses tackling the mental health crisis:

• Tax rebates for preventative health benefits.
• Guidance on employee care pathways.
• Incentives for insurers to invest in research and innovation.