World Mental Health Day | Why growing workplace sickness is a warning sign for employers – and their advisers

As today’s World Mental Health Day draws attention to the growing importance of wellbeing at work, new research from MetLife UK and former UK Small Business Commissioner Liz Barclay is shining a light on a serious concern for employers as well as for their employees, and it’s also a growing area of risk for financial advisers to help address.

According to the research findings in the whitepaper, the number of working-age people unable to work for health reasons has surged by 40% since 2019, costing UK employers an average of £20,735 per affected employee each year. For SMEs in particular, the business and human cost of long-term sickness is becoming increasingly hard to ignore.

Mental health now a leading cause of absence

The MetLife UK whitepaper reveals that almost half (47%) of UK businesses cite mental health conditions such as stress, depression, and anxiety as among the main causes of long-term sickness.

Employers identified several measures they believe could help prevent such absences:

• Better mental health support (31%)
• A good work–life balance (23%)
• Access to counselling (16%)

Meanwhile, almost nine in ten (88%) businesses say they are concerned about the impact of long-term sickness — not just in terms of absence costs, but also reduced productivity, pressure on colleagues, and the overall health of the organisation.

These findings come as the Keep Britain Working Review looks at national solutions to support people back into employment and reduce absenteeism.

“Early intervention is vital”

Liz Barclay, Small Business and Consumer Champion and author of the whitepaper, stressed the importance of taking early action:

“If you peruse the parliamentary library, you’ll find evidence that governments take the view that people should be encouraged and supported to remain in work, or to get back as soon as possible because it minimises the harmful physical, mental and social effects of long-term sickness absence.

“I’m convinced that a package of tools that enables an intervention early on is vital when it comes to reducing workplace absence. Through multiple partners, MetLife UK’s GIP product includes access to a 24/7 GP service, an Employee Assistance Programme, and a wellbeing hub. This supports employees early, if their physical or mental health has deteriorated.”

A spotlight on the need for group protection policies to support mental health

For financial advisers working with business clients, the findings underline the growing importance of group risk and protection planning as part of an organisation’s overall wellbeing strategy. Products such as Group Income Protection (GIP), Employee Assistance Programmes (EAPs), and access to virtual GP and counselling services can play a critical role in early intervention, helping employers support staff before issues become long-term absences.

Advisers are well placed to guide clients on the value of proactive wellbeing support, not only to protect their workforce but also to manage financial and operational risk. With absence-related costs now averaging over £20,000 per employee each year, wellbeing has become both a human and financial priority.

As World Mental Health Day reminds us, creating a culture that supports mental health isn’t just good for people, it’s good for business too.

The full MetLife UK whitepaper is available here.