Falling Short On Worker Mental Health Risks Can Harm Your People And Your Business

With HSE warning of a growing crisis in stress and poor worker mental health, WTW experts consider the implications and how you can protect your people and your business.

Stress and poor mental health is the number one cause of work-related ill health. Health and Safety Executive (HSE) Chief Executive Sarah Albon stated preventing or tackling work-related stress can provide significant benefits to employees. HSE would consider enforcement-related investigations where:

• There are several employees experiencing work-related stress or related ill health
• There is evidence of wider organisational failing
• The Health and Safety at Work Act 1974 (which established wide-ranging duties on employers to protect the 'health, safety and welfare' at work of all their employees, as well as others on their premises, including temps, casual workers, the self-employed, clients, visitors and the general public) could be applied.

With HSE's latest annual statistics on work-related ill-health and injury evidencing continued heightened risks to worker mental health – in this insight, we examine the cost of work-related ill health to business that suggests some businesses may need to take urgent action. We also offer guidance on how you can reduce the risks to your people and to the long-term health and viability of your organisation that poor worker mental health represents.

The costs of poor worker mental health

According to HSE's annual statistics for 2022/2023, there were an estimated 875,000 reported cases of work-related stress, depression or anxiety. These worker mental health and wellbeing issues resulted in around 17.1 million lost working days.

In addition, increasing incidents of work-related stress, depression or anxiety may give rise to increased risk of related civil compensation claims and/or regulatory enforcement action. This is especially the case given the 2023 Public Bodies Review of HSE which recommended that HSE should work with other bodies to develop specific initiatives in the work-related health and wellbeing space to update the relevant guidance and develop options for better enforcement.

HSE: Mental health conditions, work and workplace

HSE states: "Whether work is causing the health issue or aggravating it, employers have a legal responsibility to help their employees. Work-related mental health issues must be assessed to measure the levels of risk to staff. Where a risk is identified, steps must be taken to remove it or reduce it as far as reasonably practicable."

Steps to manage worker mental health risks

The starting point of positive action on protecting worker mental health could be to revise the way in which your organisation perceives mental health and wellbeing issues. Many organisations feel worker mental health is a 'specialist matter' best dealt with by their HR function, when we argue the more appropriate approach is to view them in exactly the same context as any other health and safety concern.

Not only will the general health approach help demystify the process of getting support around mental health, given many organisations are already reasonably comfortable with health and safety governance, it will help your worker mental health interventions align with the current thinking of HSE.

In terms of an appropriate worker mental health risk management process, the headline approach is much the same as for any other health and safety risk: leadership from the top, risk assessment, implementing control measures and providing the appropriate training and support.

It's worth noting one barrier we have seen many organisations face in addressing worker mental health risk is a lack of historical engagement in the subject. If this includes your organisation, it's essential you work to overcome this, potentially addressing cultural barriers and providing education in addition to changes in policies and procedures.

The benefits of worker mental health risk management

Although dealing with an issue of the magnitude of worker mental health and wellbeing can seem daunting, in risk management terms, we would argue it is an absolute necessity.

There are a range of potential benefits organisations can reap by implementing robust systematic governance and enhanced employee engagement and support to better manage worker mental health risks. Improved worker mental health risk governance mitigates risk in terms of potential civil and regulatory liability and can also improve financial performance through reduced staff absences and associated costs. Robust worker mental health risk management can also lead to increased productivity through operational continuity and an enhanced reputation as a caring employer which will reduce your recruitment and retention costs.

For smarter ways to manage work mental health and wellbeing risk, get in touch with our Health and Wellbeing Practice. For practical insight on both the civil and regulatory justice systems, contact WTW's Claims Defensibility and Regulatory Practice.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.