Link between manager training and improved business outcomes could reduce sick day costs

Research indicates that providing mental health training for line managers could save companies millions by reducing lost sick days. A study published in Plos One found that organisations offering mental wellness training for managers saw improved customer service, better employee retention, higher recruitment success, and a decrease in long-term sickness absences.

The findings suggest that mental health training is not only beneficial for the well-being of employees but also contributes to stronger business performance, making it a valuable investment for companies aiming to reduce costs and enhance productivity.

Professor Holly Blake from the University of Nottingham, who led the research, stated, “Mental ill health at work is costly for organisations in terms of sickness absence and lost productivity. This study is the first to show that training line managers in mental health leads to better business outcomes, reinforcing the case for employers to invest in mental health initiatives.”

Mental health issues affect about one in six people in the UK, with 12.7% of all sick days attributed to mental health problems. Recent estimates show that poor mental health costs British employers £51 billion annually.

The study, based on data collected between 2020 and 2023 by the Warwick Business School’s Enterprise Research Centre, suggests businesses should adopt policies that define the role of line managers in supporting employee mental health.

Dr Juliet Hassard, co-author of the study from Queen’s Business School at Queen’s Belfast University, explained, “While encouraging investment in employee mental health can be challenging, knowing that it leads to better business outcomes will help demonstrate its strategic value to employers.”