Almost a quarter of the UK’s largest listed employers have shown improvement in workplace mental health performance in the past year, with nearly half acknowledging the connection between financial wellbeing and employee mental health, according to the CCLA Corporate Mental Health Benchmark-UK 100.
The benchmark, which evaluates the global approach to workplace mental health of 100 of the UK’s largest listed companies with over 10,000 employees each, highlights the significance of mental health as a systemic risk and encourages robust management systems. The companies are ranked across five performance tiers to promote a focus on mental health among companies and investors, ultimately aiming for employee well-being and success.
Among the companies assessed, 24 have moved up at least one tier since the inaugural benchmark in 2022, with 10 firms exiting the lowest tier. Furthermore, 19 companies now rank in the top two benchmark tiers, doubling the number from the previous year. Centrica, Experian, HSBC, and Serco Group emerged as the top performers, securing places in the highest tier. Notably, Weir Group experienced significant improvement, advancing from tier four in 2022 to tier two in 2023.
The aftermath of the pandemic and ongoing cost-of-living challenges have prompted 43 per cent of the benchmarked companies to publish formal policies explicitly acknowledging the correlation between financial wellbeing and mental health. This represents a substantial 17 percentage point increase compared to the previous year and is the most significant year-on-year growth among the benchmark’s 27 performance indicators.
With the awareness of the impact of workplace mental health on both employees and organisations, UK employers are taking steps to address these concerns. The findings of the CCLA Corporate Mental Health Benchmark-UK 100 demonstrate a positive trend toward prioritising employee well-being and recognising the interplay between financial stability and mental health. The continued focus on mental health management systems will contribute to a healthier and more productive workforce.
While 93 per cent of companies acknowledge the importance of mental health, 34 per cent have yet to formalise their commitment in a policy statement. Additionally, though 89 per cent of UK companies invest in mental health programs, only 33 per cent report on their implementation.
Around 57 per cent of companies aim to reduce mental health stigma, up from 44 per cent in 2022, few leaders publicly champion the issue. According to experts, this lack of CEO leadership, with less than a quarter or 37 per cent formally signalling their commitment, is a concern for investors who see leadership as a catalyst for change.
CCLA stewardship lead Amy Browne says: “Covid-19 and the cost-of-living crisis have only served to compound our belief that poor mental health is a systemic risk. Companies have an economic and moral imperative to manage this risk. The huge increase in companies acknowledging the link between fair pay and financial wellbeing, and the mental health of their employees, is encouraging. It demonstrates that employers have an increasing awareness of their own responsibilities in ensuring good mental health in the workplace.
“Over the last 12 months, we have been bowled over by some of the feedback we have received from UK 100 companies. Many have used our recommendations to strengthen their own approaches, while others have used our insights to initiate and escalate internal conversations on mental health to the highest level. While it’s encouraging to see solid progress from many, it is early days and we’ll be monitoring companies closely over time.”
Former CEO of Mind and member of the expert advisory panel for the CCLA Corporate Mental Health Benchmark UK100 Paul Farmer says: “Workers in the UK have been caught in the challenges of the post-pandemic recovery and cost of living crisis and there are now a clear range of ways that employers respond. With approximately 15 per cent of the world’s working population experiencing a mental disorder at any given time, business leaders have a critical and hands-on role to play to step up to this new challenge.
“Leadership must be visible and it must be intentional. The marginal improvement we’ve seen this year in CEOs publicly signalling their support for workplace mental health could indicate that leadership efforts needs extra energy. This is an area of corporate practice that has significant moral and financial implications and which companies and investors alike should be monitoring closely. The positive lessons from Covid of a more compassionate leadership must not be lost at this crucial time.”
CCLA chief executive Peter Hugh Smith says: “Healthy financial markets need healthy communities and the cost of mental ill-health among the corporate workforce is significant.
“For companies, employers play an important role in improving the mental wellbeing of their workers. This includes paying people enough and fairly, offering secure, good-quality jobs, and providing benefits that extend the value of their pay.
“For investors, it is very straightforward, we want to see companies taking positive steps to address this issue and we are confident that this will deliver a triple win – for employees, for employers and for investors. The risk of not doing so is too financially punitive. We have started the journey, the early results are positive, but it’s a long road ahead. Collectively as an industry we need to help companies to do more.”