Although mental health challenges in English workplaces are increasing, employer adoption of supportive practices has stalled and is now at its lowest level since before the COVID-19 pandemic.
That’s according to a six-year study by the Enterprise Research Centre (ERC) at Warwick Business School which analysed annual surveys of small and medium-sized enterprises in the Midlands.
It found that despite three-quarters of business leaders agreeing that employers have a responsibility to protect staff mental health, only half have any initiatives in place, down from a post-pandemic peak of 57% in 2024.
The report also found that presenteeism, the practice of employees working when unwell or routinely beyond their contracted hours, was reported by 38% of businesses in 2025, the highest rate recorded since the survey began.
Professor Stephen Roper, director of the ERC at Warwick Business School, said:
“With poor mental health costing employers £51 billion a year through absenteeism, presenteeism, and staff turnover, the economic case for action is urgent,” said Professor Roper.
“We can no longer afford to treat wellbeing as a peripheral issue. Our research shows, going forward, we need a fundamental shift from reactive, short-term measures to sustained, strategic investment in mental health, which our data shows are key drivers of long-term productivity.”
The report outlined 10 policy recommendations.
They include launching a collaborative national campaign promoting the business case for investing in mental health, and creating a clear, free entry point for businesses to access trusted guidance,
The report also called for the establishment of a centre of research expertise on productivity and workplace mental health to monitor trends, gather robust evidence on the effectiveness of workplace mental health and wellbeing initiatives, and inform policy/practice development and delivery of support.
Dr Vicki Belt, deputy director of the ERC, said:
“Our evidence shows that creating a psychologically safe climate where employees feel supported is fundamental to wellbeing and performance.
“The recommendations provide a clear roadmap for policymakers and employers to work together to address this critical issue, which is central to tackling the UK’s productivity puzzle.”
