The business impact of mental health training for leaders

As reported in The Guardian, the UK economy is grappling with a crisis in rising absenteeism and presenteeism, costing an estimated £100 billion annually. This hidden cost underscores a critical issue: employees are increasingly absent due to health concerns or present but not fully productive, often due to mental health challenges. Addressing this requires strategic interventions, including targeted training for leaders.

Evidence from Over 7,000 UK Firms

A new study from the University of Nottingham has provided evidence on the benefits of line manager training in mental health. In the first study of its kind to focus on organizational outcomes, the researchers analyzed interview data from UK organizations, collected over four years across various sectors including wholesale, business services, and hospitality. 

They then compared outcomes between organizations, taking into account different characteristics of their workforces, based on whether or not they offered mental health training for line managers.

Key findings:

• Lower long-term absence: Organizations offering mental health training for managers reported significantly lower long-term absence due to mental health issues compared to those without such training.
• Improved business performance: These organizations also saw higher ratings in staff recruitment, customer service, staff retention, and overall business performance.

The study authors describe these effects as a 'chain of impact'. Manager training improves support for mental health, which in turn reduces absenteeism and enhances various business outcomes, ultimately leading to greater profitability.

While research shows the positive impact of training, understanding how managers and employees perceive mental health skills at work is equally important. In a survey of over 6,000 managers and employees across the UK and US, Unmind found:

• Leadership skills gap: 72% of managers believe that enhancing people leadership skills could help them address absenteeism and productivity issues related to mental health concerns.
• Need for more training: 40% of leaders indicated that their organizations do not provide enough training opportunities to manage their teams effectively. 
• Desired skills development: When asked what skills their leaders could develop, 31% of employees highlighted the need for better listening skills, while 29% emphasized team motivation techniques.

These findings highlight the critical need for training programs like Unmind, which strengthen relationships between managers and employees, foster supportive cultures, and equip leaders with essential skills for building sustainable, high-performing teams. 

Access to digital training tailored to their needs has shown positive results and engagement among managers. In Unmind’s recent study on line manager training, managers reported feeling more equipped to handle mental health issues within their teams.

This success is also reflected in a global rollout of Unmind manager training in partnership with Entain, where 3,000 managers participated. The results were impressive: 97% of participants found the training helpful, and 73% took concrete actions following the training.

To learn more about bridging the mental health skills gap in leadership, download our "Accidental Bosses Handbook".