What’s the ROI of mental health training in the workplace?

Like all business decisions, any proposed investment in mental health training must be justified. The clearest way to do this is to look at the cost of poor mental health at a national level and see what parallels you can draw with your organisation.

Here’s the over-riding positive: Deloitte research found that for every £1 invested in mental health and wellbeing interventions in the workplace, employers get an average of £4.70 back in increased productivity.

Not a bad return! Let’s dig into the key costs of mental ill health to the workplace and see how mental health training mitigates those issues. Making things better for your employees’ mental health and better for your bottom line.

Measuring the ROI of mental health training

It’s important to consider how you’re going to measure the ROI of your mental health training before you start investing in courses and other resources. Here are some key metrics you can easily track from within your existing systems:

• Rates of absenteeism: Monitor any changes in the frequency of sick days taken for mental health reasons before and after training.
• Employee retention rates: Track changes in turnover rates, especially for employees who participated in the training.
• Employee engagement: Measure improvements in employee engagement through 1:1 check-ins, surveys, productivity, and overall morale.
• Presenteeism rates: Track engagement at work through interviews, surveys and observations of employees.
• Healthcare costs: Compare costs for healthcare and mental health support claims (if applicable) before and after implementing the training.
• Productivity and performance metrics: Measure any improvements in productivity, quality of work, or job performance from trained employees.
• Direct feedback: Conduct surveys or interviews to gather feedback from employees about the effectiveness of the training and how it has impacted their work experience.
• Customer satisfaction: Track any changes in customer satisfaction or feedback, as employees with better mental health are likely to engage more positively with clients.
• Work-related mental health claims: Monitor the number of work-related mental health claims (e.g. stress or burnout) and track any decrease over time.
• Employee well-being scores: Use well-being assessments (e.g., stress levels, job satisfaction) before and after the training to gauge any improvements in mental health. It’s wise to run this kind of assessment on a regular basis, so you can tackle any new issues quickly.

Understanding the costs of poor mental health at work

The most recent figures show that poor mental health costs employers £51 billion a year in the UK. This doesn’t just mean being off sick with mental ill health, but also the costs of presenteeism, burnout, and people deciding to quit because of workplace stress or unmet mental ill health needs.

Absenteeism

According to the Health and Safety Executive, there were a total of 29.6 million working days lost in 2023-24 – 16.4 million due to ‘stress, depression or anxiety.’

The cost of absenteeism is more than just paying the salary, or sick pay, of the individual. It’s:

• Paying overtime or agency fees to make sure productivity doesn’t suffer
• Reduced productivity, leading to delayed delivery with the knock-on effect on reputation and likelihood of repeat business
• Strain on the remaining staff to bridge the gap of their missing colleague – reducing morale and possibly contributing to burnout or other mental ill health issues for other staff

According to other research, a third of organisations don’t know the specific cost of employee absence to their business – do you? The first step in reducing staff absence is effective monitoring and understanding the insights from those figures.

Presenteeism

When it comes to poor mental health, of that £51bn total cost, £24bn is from presenteeism – the largest contributing factor. The Deloitte report defines presenteeism as being “where people work in spite of illness and don’t perform at their full ability.”

If your employees are at work while dealing with mental ill health, it’s likely they won’t be as productive, will make more mistakes, and won’t fulfil their full potential.

It can be really difficult for managers to spot signs of presenteeism, particularly with mental ill health issues. Employees can be struggling with lower level mental ill health while continuing to work, before a cumulative crisis emerges and they need to take sick leave.

Burnout

63% of respondents experienced at least one characteristic of burnout. That includes things like feeling disconnected and distant from their job, decline in performance at work, and being exhausted.

Burnout is officially classified as an ‘occupational phenomenon’ rather than a mental illness or disorder. It takes stress to a whole new level of detachment and “can be a cause for mental ill health and could be a risk factor for developing mental health conditions such as depression or anxiety, it should be taken seriously.”

There aren’t specific statistics to illustrate the cost of burnout. But the seriousness of its consequences and the prevalence of those experiencing its characteristics require full consideration for all employers.

Employee turnover

The CIPD Resource and Talent Planning Report found that the “average cost per hire (including in-house resourcing time, advertising costs, agency or search fees)” is £2,000 for the private sector and £2,500 for the public sector. A large proportion of respondents expect recruitment costs to rise this year.

And that figure doesn’t account for any loss of productivity from having unfilled positions or onboarding and training new staff. And the practicalities of new uniforms and equipment all add up.

The Deloitte research found that people are leaving their jobs – and 59% said it was “somewhat, largely or entirely due” to mental health and well-being-related issues.

Key areas where mental health training delivers ROI

It all feels rather overwhelming, doesn’t it? Deep breath—there is a robust way to deal with many of these issues.

The psychologically healthy workplace environment created by good mental health training isn’t just good for your employees – it positively impacts your bottom line. Because it embeds the necessary language, knowledge and skills to effectively support colleagues with mental health issues.

Increased productivity

Drawing straight lines between the cost of mental health training and your rate of productivity may be a little tricky. But it’s working for the biggest, most successful global companies…

A partnership between Indeed and the University of Oxford Wellbeing Research Centre produced the ‘2024 Work Wellbeing 100’ list. They ranked 100 public companies by their levels of work wellbeing felt by their employees. A key finding is that they don’t just have happier people – they consistently outperform the market by 20%.

And this isn’t just true for global enterprises. Employees with better mental well-being tend to work more efficiently, directly enhancing productivity. Additionally, addressing mental health proactively reduces that huge barrier to productivity—presenteeism.

Reduced absenteeism and sick leave costs

Investing in mental health training equips employees with proactive stress management techniques, leading to reduced absenteeism and significant cost savings for UK businesses.

By fostering a supportive environment, such training helps managers and employees address stress before it escalates into serious health issues that necessitate time off. This proactive approach results in fewer mental health-related sick days, enhancing overall productivity.

Financially, the benefits are substantial. For example, a study conducted by Swansea and Cardiff Universities implemented a workplace intervention programme called Prevail at the Driver and Vehicle Licensing Agency (DVLA). This programme led to a 22% reduction in recorded sick days among participating staff.

The Prevail programme focused on training employees in psychological interventions and coping techniques, which not only reduced the stigma around mental health but also encouraged individuals to seek support when needed.

Enhanced employee engagement and retention

Investing in mental health training is a smart move for businesses because it helps keep employees engaged and less likely to leave. Here’s how it makes a difference:

• Happier employees stick around: When people feel supported in managing stress and mental well-being, they’re more satisfied in their jobs. And happy employees are far less likely to leave. Smurfit Kappa UK, for example, trained 17% of its workforce in Mental Health First Aid, creating a more supportive work environment and boosting retention.
• People feel valued, so they stay: When a company invests in mental health training, employees know their well-being matters. It’s not just a paper policy, you’re putting your money where your mouth is. This makes them feel appreciated and less likely to quit, saving you money on hiring and training new staff.
• A better workplace culture pays off: Workplaces that prioritise mental health create more positive, open, and supportive environments. This, in turn, boosts engagement, productivity, and long-term success.

  For example, Foxtons, a London-based estate agency, recognised the need to improve its workplace culture following allegations of misconduct. By committing to mandatory respect and inclusion training, Foxtons aims to create a more supportive environment, which is expected to result in long-term benefits such as improved employee morale and reduced turnover.

By putting mental health training at the heart of workplace culture, you can improve job satisfaction, reduce costly staff turnover, and create a more engaged and productive team.

Wider business benefits

Mental health training not only supports employees but also strengthens your organisation's reputation, culture, and customer relations, culminating in substantial business advantages.

• Boosts your brand and reputation: Companies that prioritise mental health are viewed as caring and supportive, attracting top talent and fostering loyalty among existing employees. This commitment to employee well-being helps you attract and keep top talent as word of your supportive workplace spreads among job seekers.
• Better morale and a more inclusive workplace culture: Employees who feel supported in their mental health are more engaged and productive, leading to a positive work environment. Good mental health training equips your employees with the knowledge, skills and support that they need to express their own needs, empathise with colleagues, and support people through mental health issues.
• Better client and customer interactions: Employees who are mentally well are more likely to provide superior service, enhancing customer satisfaction and loyalty. Studies have shown that a one-point increase in employee well-being on a 0-10 scale can lead to an average 12% increase in productivity, which includes improved customer satisfaction.

As you can see, investing in mental health training gives your business a multitude of benefits that extend beyond individual well-being and help build towards your business goals.

Investment in mental health training – it’s a smart business move

The ROI of mental health training in the workplace goes way beyond just improving well-being. It leads to a more engaged, healthier team, better retention, fewer sick days, and a boost in overall performance. When employees feel supported, businesses see real benefits in both productivity and profits.

By teaming up with Resilient People, you’re getting expert training that’s tailored to fit your company’s unique needs. Our experienced team delivers practical, evidence-based solutions to create a compassionate and mentally healthy workplace.

Investing in mental health training with Resilient People isn’t just a smart move for your bottom line—it’s an investment in your people. Give us a call to get started.