UK Companies Taking Action on Workplace Mental Health Amid Investor Pressure

Every year, the economic toll of poor mental health in the UK is staggering—an estimated £110 billion. Yet, for many employees, the personal impacts are fight-or-flight stark, manifesting in daily battles with anxiety, stress, and depression. In a small office in London, Sarah, a mid-level manager, recalls the moment she decided to resign after enduring debilitating anxiety due to unmanageable workplace stress. “I felt like I was drowning,” she confesses. Her story is emblematic of a larger trend affecting the country’s workforce, where the pressure for employers to act on mental health is building, catalyzed by a coalition of investors managing a staggering $10.2 trillion in assets.

The CCLA Benchmark: A Turning Point for Corporate Responsibility

The fourth annual CCLA Corporate Mental Health Benchmark – UK 100 sheds light on how the largest British employers are faring in terms of mental health support. Since its launch in 2022, the initiative has recorded significant progress: this year, the average score of participating companies rose to 46%, up from 41% last year. This kind of analysis illustrates that while progress exists, critical gaps linger, exposing firms to economic costs and reputational risks.

The Role of Investors in Driving Change

Amy Browne, Director of Stewardship at CCLA, emphasizes the link between corporate mental health initiatives and business success. “We have seen real improvement among the UK’s largest listed companies since we began benchmarking their performance on mental health in 2022,” she states. “Many cite better productivity, lower staff absence, and improved talent attraction as key drivers for focusing on employee mental health.” Despite this, a small number of companies—24%—still chose not to engage with investors, a sign of daunting complacency in an otherwise urgently demanding context.

Globally, the situation remains dire, with an estimated 12 billion working days lost annually due to depression and anxiety, translating into $1 trillion in lost productivity according to the World Health Organization. The pandemic exacerbated these pre-existing issues; a significant percentage of working adults report heightened stress levels. Yet, even during these turbulent times, statistics from Mind, a mental health charity, show that 14% of employees felt so overwhelmed by stress that they resigned. The narrative is clear: addressing mental health not only improves employee well-being but also resulting productivity pays dividends.

Companies on the Rise and Fall

Top Performers

This year’s evaluation revealed notable shifts among participating firms. Financial services firm Aviva climbed two performance tiers, showcasing substantial growth. Other standout performers included International Distribution Services and Intertek Group, both improving their scores by over 25 percentage points. Here’s a summary of the progress:

• A total of 53 companies improved their mental health performance metrics.
• 21 companies moved into a higher performance tier.
• 76% of companies engaged with the benchmarking process, a significant rise from 69% last year.

Decliners and Gaps

However, all is not well in mental health management across UK companies. 13 businesses remain in the bottom performance tier, scoring 20% or less. For these firms, the potential for economic loss and reputational damage looms large. Data provider RELX saw the steepest deterioration, dropping by over 25 percentage points since the benchmark’s inception.

“It is disappointing to see some companies failing to recognize the importance of the issue and choosing not to engage with CCLA and other major shareholders,” Browne reflects, calling attention to a significant blind spot in many corporate strategies.

Unpacking the Issues: Where Companies Fall Short

Critical Shortcomings in Mental Health Initiatives

While nearly every participating firm acknowledges the significance of mental health, deeper issues persist. A staggering 49% of companies do not offer mental health training to line managers, the crucial frontline in recognizing and addressing employee needs. Additionally, only 40% assign operational responsibility for mental health to specific individuals, raising concerns about accountability.

Sarah Hughes, CEO at Mind, underscores the crucial role of leadership in driving mental health initiatives. “Having investors like CCLA raise this issue helps reinforce the message that employee mental health should be high on the agenda for responsible employers,” she asserts. Yet, nearly half of CEOs remain silent on making personal commitments to employee mental well-being.

Recommendations for Improvement

The CCLA Corporate Mental Health Benchmark reveals both strides and setbacks in corporate mental health management. Stakeholders need to cultivate an environment where mental health is prioritized, monitored, and integrated into company culture. Experts recommend:

• Establishing comprehensive mental health training programs for line managers.
• Assigning dedicated personnel for managing day-to-day mental health initiatives.
• Implementing effective mechanisms for monitoring and evaluating the impact of programs on employee well-being.
• Encouraging CEOs to vocally champion mental health initiatives within their organizations.

As companies look forward to the release of the next benchmark, the stakes couldn’t be higher. Addressing mental health is not solely a corporate responsibility; it is an ethical imperative that resonates with employees, consumers, and investors alike. Many companies now recognize the urgent need to up their game in mental health management. With pressures from investors rising, will UK businesses finally heed the call for sustained improvements in workplace mental health?

Source: ifamagazine.com