Corporate Leadership Failing to Act on Mental Health?

Analysis of company reports from FTSE 100 companies, conducted by CCLA, found most companies now acknowledge mental health as an important business issue… yet just over a third report that they have set objectives and targets on mental health, and only 11% disclose any related key performance indicators.

The estimated cost to business of mental ill-health was £33bn–£42bn each year. In 2020–21, that has risen to £53bn–56bn each year. The human cost, especially during the pandemic, has been equally damaging.

44% of companies have published clear commitments to promoting a culture of openness on mental health. Yet only one in three company CEOs are signalling leadership commitment to mental health.

Only one-third of companies recognise the link between ‘good work’ principles and mental health. These principles include diversity, equality and inclusion, flexible working and job adjustment, and fair pay and financial security.

Two-thirds of companies assessed have yet to publish formal objectives aimed at improving workplace mental health. Only 34% of companies publish formal objectives and targets, highlighting that many have not yet translated their policy commitments into action.

Companies need to strengthen their governance and management processes if they are to sustain a strategic focus on workplace mental health. 43% of companies demonstrate that they have assigned board oversight for mental health, but only 23% evidence that they have assigned operational management responsibility for mental health.

There is no shortage of workplace initiatives on mental health. Three-quarters of companies assessed have developed workplace initiatives… however, reporting on the uptake of these schemes is lagging, which makes it difficult to measure their effectiveness.

Where to Start According to the CCLA?

• Acknowledge workplace mental health as an important business issue.
• Signal board and senior management commitment to promoting mental health in the workplace, recognise the link between mental health and ‘good work’, and encourage a culture of openness.
• Publish a mental health policy statement and make clear the governance and management processes in place to ensure it is implemented.
• Set objectives and targets to improve workplace mental health.
• Report annually on progress.