This is true across a huge number of UK businesses. At professional services consultancy Barnett Waddingham, our recent research of UK C-suites and HR directors found that nearly three quarters (73%) of business leaders believe their companies are ‘well equipped’ to manage mental health issues in the workforce. Yet, less than half are collecting the data needed to do so effectively.
Without a solid understanding of the mental health issues affecting their teams, employers risk operating in the dark. Not only this, but they could face serious consequences for the health of their employees and their bottom line.
The mental health data gap
The disconnect between perception and reality is startling. While most business leaders are confident in their mental health support systems, just 44% actively track key mental health across indicators such as anxiety, depression, or stress-related disorders. This lack of data collection creates significant blind spots, making it difficult for companies to assess the true extent of the problem, identify high-risk employees, or implement targeted interventions.
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The need for data is particularly pressing as mental health-related absenteeism continues to rise, and can lead to serious organisational-level issues. Our findings also show that more than two thirds (64%) of businesses have seen an increase in absenteeism due to mental health issues, with younger employees being disproportionately affected. Despite this, only 41% of companies have increased spending on mental health support, and fewer than a third (28%) have enhanced training on mental health challenges.
This lack of investment and proactive measures only further highlights the urgency for businesses to move beyond surface-level solutions and invest in robust data collection and analysis. Understanding mental health conditions in the workforce isn't just about offering support when problems arise, it's about taking preventative measures that can mitigate risks before they escalate.
The risks of flying blind
When businesses fail to track mental health statistics, they risk missing early warning signs that could help employees before their conditions worsen. Mental health issues such as anxiety, depression and stress often build gradually, with clear signals that can be monitored through data-driven insights. By ignoring these signals, employers can not only compromise their employees’ wellbeing but also the productivity and stability of their organisation.
Absenteeism is one of the most immediate consequences of untreated mental health issues. A recent study from PwC finds that a surge in mental health conditions was identified as one of the drivers for labour market inactivity, particularly among 18-to-24-year-olds, of whom 22% suffered from a long-term mental health condition.
Depression, anxiety, and other mental health disorders are also among the leading causes of this inactivity. When employees are too unwell to work, businesses experience a direct hit to productivity, and the ripple effects can be long-lasting, impacting everything from team morale to customer or stakeholder satisfaction.
Equally concerning is the impact on presenteeism, when employees are physically present at work but unable to perform at their full capacity due to mental health struggles. This silent issue can erode productivity over time, costing companies even more than absenteeism while remaining difficult to detect without the right data.
A strategic priority for employers
The good news is that more businesses are beginning to recognise the importance of mental health support. Our study finds that two fifths (40%) of employers now consider strengthening mental health support a strategic priority, and many are exploring solutions such as phased returns to work, flexible working arrangements, and enhanced training to better equip managers and employees to address mental health challenges.
And, as was recently outlined in the prime minister’s speech on NHS reform, prevention of illness, not just cure, is critical to getting the UK's workforce back up and running. Employers, not just healthcare providers, must play a role in creating a healthy and resilient workforce. This means businesses being included in the ecosystem of the NHS, private healthcare providers, insurers, and others working to improve the health of the nation.
It is imperative that employers stop operating with naive optimism about their mental health systems, and hope that things will get better before they get worse.
Failing to track and understand mental health conditions leaves businesses vulnerable to rising absenteeism, decreased productivity, and worsening employee morale. By making mental health a strategic priority, backed by comprehensive data collection, employers can not only support their teams more effectively but also drive better business outcomes, and a better economy in the long run.
Julia Turney is a partner, platform and benefits, at professional services consultancy Barnett Waddingham
