'Naive optimism' | Bosses blind to mental health crisis as absenteeism soars

Nearly three-quarters (73%) of business leaders believe their organisations are well-prepared to manage mental health concerns in their workforce, according to new research from leading independent consultancy Barnett Waddingham.

However, under half of these businesses are collecting comprehensive data on mental health conditions impacting their employees, highlighting significant gaps in understanding the full scope of the issue.

The study, commissioned by Barnett Waddingham, surveyed 301 HR Directors and C-Suite business leaders in UK companies. It revealed that nearly two-thirds (64%) of businesses have seen a rise in absenteeism due to mental health issues, affecting employees across all age groups. Despite this, just two fifths (41%) of these businesses have responded by increasing their spending on mental health support, while under a third (28%) said they had boosted training around mental health challenges.

Business leaders also said that they had observed mental health services being most utilised by younger employees, with 69% believing these services were well-utilised by staff aged 25-34. Notably, mental health issues were most prominently observed in this younger cohort, with 51% of business leaders reporting a significant impact among employees aged 25-34, compared to decreasing concerns among older workers.