Deloitte’s report on mental health sets out the costs of mental health issues to UK employers. Bearing in mind this report was pre-Covid, it is reasonable to assume that the impact of mental health issuers will only have increased.
The report calculates that poor mental health costs UK employers at £42 – 45 billion a year, compared to £33 - £42 billion in 2017 – the 16% rise is calculated from the mid-point between the two.
For employers in the insurance sector this is further refined to a cost of between £3,245 and £3,353 per employee per year compared to the national average of £1,652.
If an insurance employer has 1,000 employees, this would mean a cost to their business of around £3.3m using the figures above.
The figures above are an average for the UK but the cost to London employers is 36% higher than any other region in the UK.
The cost of mental health issues is highest in the 30-39 year old age group.
From our experience the typical cost of a solution that greatly improves mental health in the work place is about 2% of the cost of the problem. This seems like an obvious case for action.