Work-related stress costs UK economy billions every year

A recent survey of 30,000 adults across 16 nations found that work-related mental health issues cost the UK economy £28 billion a year.

The research by insurance firm AXA also revealed that Britain was the most impacted of the evaluated countries. More than 20 percent of UK respondents said they were “struggling”, compared to 17 percent in the United States, 14 percent in Japan and Ireland, and 5 percent in Thailand. A further 25 percent described themselves as “languishing”, meaning that over 50 percent of Britons were in a state of emotional distress.

The consequence of such high levels of stress and burnout is significant, with businesses and organisations losing 23.3 million days per annum to occupational-linked sickness. To be sure, figures from the Office for National Statistics (ONS) showed that long-term sickness hit record levels in the final quarter of 2022, while general employment numbers have failed to return to pre-pandemic levels.

Commenting on the report, Claudio Gienal from AXA said: “For the more hardnosed people, there is an economic value to looking after people’s mental health.

“We know that if employees are flourishing, they are much less likely to resign – our research showed that only 6% of people who identified as ‘flourishing’ said they intend to leave their jobs in the near term.

“So, if you have lots of people struggling, then it does not make sense economically – they are more likely to be off sick, they are less engaged, and they will move jobs.

“[T]here is a good rationale economically, but I don’t think it should be the driver.”

To find out more about this subject, read our blog on why and how firms should promote employee mental health and wellbeing: Employee Wellbeing: Policy Driven or Just “the Right Thing to Do”? | GC Business Growth Hub

If you run a small or medium-sized business in Greater Manchester and want to understand how the health of your workforce might impact your operations and revenues, GC Business Growth Hub’s #HereForBusiness package provides practical guidance and expert advice on a range of topics to help you manage the increasing cost of doing business.

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