A guide to mental health in the workplace


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Authored by Hiscox Experts.
4 min read
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Mental health in the workplace can affect anyone, regardless of role or seniority. Business owners and managers often face added pressures to support others while juggling their own responsibilities. Employees can also experience challenges related to workload, job security, and balancing personal commitments. This can make it difficult to maintain motivation and a positive work-life balance. 

This guide aims to help you better understand mental health and wellbeing in the workplace and discusses practical ways employers can support their teams.

Why mental health in the workplace matters


Poor mental health can impact morale, staff retention, productivity, and performance.1  (external link)

The Health and Safety Executive (external link) reveals that around 776,000 workers reported work-related stress, depression, or anxiety in 2023-24. This resulted in 16.4 million working days lost in the United Kingdom, accounting for about 46% of all work-related ill-health cases.2 (external link) 

Investing in mental health can benefit both employees and long-term business success. By prioritising wellbeing, employers can foster a culture where staff feel supported, valued, and motivated. This can help reduce absenteeism, strengthen morale, and improve overall productivity.3 (external link)

Employer responsibilities for mental health


Employers have a legal duty to support mental health and wellbeing in the workplace. Under the Health and Safety at Work Act 1974, businesses must ensure the health, safety, and welfare of employees. 

The Management of Health and Safety at Work Regulations 1999 requires employers to assess health and safety risks, including work-related stress.4 (external link) 

Employer responsibilities include: 

  • Conducting risk assessments that consider stress and mental health 
  • Ensuring a safe work environment 
  • Protecting staff from discrimination, including a mental health condition if it’s recognised as a disability.5 (external link) 

The Equality Act 2010 (external link) also requires employers to make reasonable adjustments for employees with mental health conditions that qualify as disabilities.

Recognising signs of poor mental health


Mental health issues can be hard to spot, especially in busy work environments. However, there are common signs that may indicate someone is struggling: 

  • Persistent tiredness or low energy
  • Changes in mood or behaviour 
  • Withdrawal from colleagues 
  • Reduced productivity, focus or interest 
  • Increased sickness absence or tardiness6  (external link)

Burnout may appear as emotional exhaustion, cynicism, and reduced performance.7 (external link) Anxiety can manifest in various ways, including restlessness, irritability, or physical symptoms like headaches.8 (external link) Depression may involve low mood, lack of motivation, or changes in sleep and appetite.9 (external link)

Practical methods to support employee mental health


Many employers think about how to improve mental health in the workplace. This can be a difficult issue to navigate but small consistent actions can potentially make a big difference.

1. Flexible working arrangements

Flexibility can help employees manage work alongside personal responsibilities. This might include:

  • Remote or hybrid working options
  • Flexible start and finish times
  • Clear policies around time off

These adjustments can reduce stress and improve work-life balance, which can support overall mental health and wellbeing.

2. Mental health awareness training

Training helps create a culture where mental health is openly discussed. It supports employees to:

  • Recognise signs of poor mental health
  • Respond appropriately to colleagues in distress
  • Understand how to access support

Organisations like Mental Health at Work (external link) and Mind (external link) offer free or low-cost training resources for businesses of all sizes, including SMEs.

3. Wellness action plans

Wellness Action Plans (WAPs) are personalised tools that can help individuals identify what keeps them well at work, early warning signs, and how to respond if they’re struggling. Mind provides free templates and guidance to help businesses implement WAPs effectively.10 (external link)

4. Access to support services

Workplace support has its limits, but you can signpost employees to professional help when needed. This includes:

Making this information visible and accessible can reduce barriers to seeking help.

5. Physical activity and healthy habits

Physical and mental health are closely linked.11 (external link)Supporting healthy habits can make a difference to employee wellbeing:

  • Promote regular breaks and lunch hours
  • Encourage physical activity during the day
  • Share resources on nutrition, sleep, and exercise12 (external link)

These small changes can help reduce stress and improve focus.

Supporting your own mental health as a business owner


Business owners may face unique challenges, including financial pressure, long hours, and isolation. Supporting others can be difficult if your own mental health is suffering. 

Managing this can include: 

  • Setting boundaries and realistic expectations for how much support you can provide. 
  • Taking regular breaks and time off. 
  • Delegating tasks where possible. 

Accessing peer support networks, such as those offered by the Federation of Small Businesses (external link) (FSB) or Mental Health at Work, can also provide a valuable perspective. 

Professional counselling or coaching can also offer a confidential space to work through challenges. 

Creating a workplace that supports mental health and wellbeing can benefit everyone. It helps individuals feel valued and supported, and it contributes to a more resilient, productive business.

Disclaimer:
At Hiscox, we want to help your small business thrive. Our blog has many articles you may find relevant and useful as your business grows. But these articles aren’t professional advice. So, to find out more on a subject we cover here, please seek professional assistance.

Hiscox Experts

The Hiscox Experts are leaders valued for their experience within the insurance industry. Their specialisms include areas such as professional indemnity and public liability, across industries including media, technology, and broader professional services. All content authored by the Hiscox Experts is in line with our editorial guidelines.