Huge increase in long-term mental health absence hits Midlands businesses

A new report by researchers at Warwick Business School has found a significant increase in the proportion of businesses in the Midlands experiencing staff taking time off work due to long-term mental health issues.

The annual survey of 1,900 Midlands-based businesses by the Enterprise Research Centre (ERC), now in its fifth year, found that while mental health absence remains an issue for many businesses, there has been a particularly notable increase in long-term absenteeism.

Researchers found that 27.5% of companies reported experiencing some level of mental health-related absenteeism in the past year, with the percentage of companies reporting that at least some of that was long-term (defined as lasting four weeks or more) increasing from 38% in 2023 to 47.2% in 2024, a significant increase of 9.2 percentage points.

The survey also found evidence that “presenteeism” – employees working when unwell or working long hours – continues to be a problem. Presenteeism increased dramatically in 2023 and remains at high levels. In the 2024 survey, more than a third of companies reported that some level of presenteeism occurs in the workplace.

Previous analysis by ERC researchers estimated that businesses with mental health issues in the workplace, such as absenteeism and presenteeism, could experience a 25% drop in productivity.

The survey also finds that an increasing number of companies are responding to these pressures by taking measures to address mental health: 57% of companies say they will have initiatives in place in 2024, up from 52% in 2023 and 44% before the COVID-19 pandemic. However, almost 80% of companies believe such initiatives should be in place, suggesting a large gap between intention and action.

Lead researcher Dr Maria Wishart said: “Our research shows that mental health issues remain an issue facing a significant proportion of organisations – and it’s not an issue that’s going to go away easily.”

“The sharp increase in businesses reporting absence due to long-term mental health-related illnesses is of particular concern as the impact on individuals and businesses tends to be greater.”

“Mental health issues not only have a negative impact on the individuals and families who experience them, but we know they also have a negative impact on business performance.

“It’s encouraging to see that more businesses are offering mental health support to their employees, but there is still much more to be done. A significant number of businesses do not offer any mental health initiatives and almost a fifth say they have no plans to do so in the future.”

“Fundamental policy change on workplace mental health is needed and this will require action from many different parties – governments, mental health organisations and employers.”

There are some variations across industries, with manufacturing, wholesale and retail trade and hospitality seeing the sharpest increases in long-term mental health-related absenteeism, which the study shows is likely related to the higher proportion of low-paid, low-skilled jobs in these industries.

The report recommends providing further education and support to employers, as well as tailored support for small and medium-sized enterprises, and highlights the need for businesses to put employee well-being at the heart of job design to create healthier working environments.

The role of industry associations is also emphasized, particularly in industries where the incidence of mental health issues is high and the adoption of support measures by managers is low.

“The sectoral differences uncovered in our study warrant more attention. The data suggests, for example, that there may be an association between lower-skilled, insecure work and chronic mental health absenteeism,” Dr Wishart said.

“Some industries have a significantly lower proportion of employers offering mental health initiatives. By better understanding these differences, we can ensure we provide the right mental health support for specific work environments.”