Mental health and productivity in the workplace 

The World Health Organisation reports that more than 1 billion people globally are living with a mental health disorder, making these conditions one of the leading causes of disability worldwide and impacting daily life, including work performance.

Mental health refers to how we think, feel, and respond to life. When employees are mentally well, they can cope with challenges in a positive way and perform at their best, contributing fully to the workplace.

Although everyone experiences stress, fear, or low mood from time to time, if these feelings persist they may develop into a mental health issue.

Signs that a colleague may be struggling with their mental health at work can include:

• Reduction in productivity
• Making more mistakes than usual
• Isolating themselves or avoiding colleagues
• Looking fatigued
• Taking on too much work

More employees than ever are likely to experience a mental health challenge at some point in their careers. Promoting mental health awareness is essential for creating a supportive and productive workplace. Understanding the signs of stress or mental health difficulties, recognising when colleagues may need help, and knowing how to respond appropriately can make a real difference.

While mental health issues can affect anyone due to factors such as genetics, trauma, discrimination, or physical illness, fostering awareness helps employees feel supported and reduces stigma around seeking help.

Raising awareness also enables businesses to identify potential workplace stressors early, allowing preventative measures to be put in place before mental health difficulties impact productivity.

But what causes mental health issues in the workplace? The answer is complex and linked to the individual however ongoing periods of stress may be a contributory factor for some people.

Stress only becomes negative when employees have this feeling for a sustained period and do not have the skills or support needed to help. It is easy for people to fall into poor ways of managing stress including:

• Drinking alcohol more often than usual
• Over or under eating
• Smoking Gambling
• Using drugs
• Developing compulsive habits like shopping

Unchecked, stress can lead to reduction in productivity, increased anxiety or depression. However, with the right wellbeing supports employees can recognise and take healthy, corrective action to relieve the symptoms like:

• Speaking to their line manager
• Exercising Focusing on achievements
• Setting SMART goals
• Recognising presenteeism

A study by Gallup found that over a 12‑month period, U.S. workers with poor mental health missed more days than other employees, with this lost work estimated to cost the economy $47.6 billion annually in lost productivity.

The business case for supporting employee wellbeing could not be clearer. Implementing wellbeing initiatives helps protect mental health and, in turn, boosts productivity. Studies have shown the following approaches to be particularly effective:

It’s difficult to improve any metric without a baseline measurement and an understanding of the root causes. Start by analysing what might be impacting productivity, including mental health. Anonymous surveys can be a valuable tool for uncovering underlying issues in your business. Some topics to consider include:

• How are employee wellbeing and stress levels?
• Are employees clear on employer expectations?
• What do they feel are bottlenecks to productivity?
• What are their opinions on collaboration and communication within the workplace?
• Do they feel management is enabling productivity?

Research shows that organisational culture is strongly linked with employee mental health and wellbeing. A study published on PubMed found that a strong workplace culture of health was associated with lower stress and depression and higher work engagement among employees, factors that influence outcomes like absenteeism and turnover.

In order to see any improvement in productivity from supporting employee wellbeing, businesses must work on culture first. Workplace culture is the foundation of mentally healthy workplaces. Without a positive culture, wellbeing programmes are unlikely to flourish. Employees must feel comfortable sharing how they feel, and a supportive culture is key to that. Some tips for developing a culture of wellbeing include:

• Assessing the current culture strengths and weaknesses
• Involving employees in design and implementation of a new culture
• Evaluate managers as well as employees to ensure they are genuinely supportive
• Focus on the importance of work/life balance
• Encourage socialising at work

Although the goal is to reduce mental health challenges in the workplace, it is unrealistic to believe they are going to be eradicated. A key element of improving workplace wellbeing is to offer mental health services to employees when they need them. Employee or expat assistance programmes are a great way for employees who may be struggling with work or non-work related issues to get confidential support with the goal of resolving the issue before it becomes overwhelming. 

Providing employees with a good work and life balance has been shown to improve productivity. It reduces stress levels, prevents burnout, and improves motivation to mention only three benefits.

Policies such as hybrid working, flexible hours that allow employees to manage family life, encouraging breaks during the working day, and offering mental health days where employees can take time off to recharge are all shown to support wellbeing and boost productivity.

Improvements in productivity are often linked to working smarter, not harder, highlighting the value of flexible working arrangements.

Investing in employee mental health isn’t just a nice-to-have; it’s a smart business decision. By taking a strategic approach, businesses can see measurable benefits that impact the bottom line.

Key points to consider:

• Poor mental health can cost businesses billions annually in lost productivity, recruitment, and training.
• Employees who feel supported are more engaged, motivated, and likely to stay with the company.
• A strong wellbeing strategy can enhance employer branding, helping attract top talent.
• Supporting mental health can reduce absenteeism and presenteeism, leading to smoother operations.
• Businesses that prioritise wellbeing often see higher overall performance and better team collaboration.

To ensure wellbeing initiatives are effective, businesses need clear ways to track and measure outcomes. Understanding what works allows HR leaders to refine programs and demonstrate tangible results to management.

Ways to measure success:

• Conduct employee surveys to monitor stress levels, engagement, and satisfaction.
• Track absenteeism, turnover, and presenteeism metrics before and after implementing initiatives.
• Monitor productivity indicators, such as project completion rates or error reduction.
• Evaluate participation in wellbeing programs, workshops, or Employee Assistance Program usage.
• Collect qualitative feedback through focus groups or one-on-one discussions to uncover underlying issues.
• Set clear KPIs and review them regularly to adjust programs as needed.

Investing in employee mental health today sets the stage for a more productive, engaged, and resilient workforce tomorrow. Supporting wellbeing, flexible work, and a positive culture helps businesses create workplaces where both people and performance thrive.