Mental health support stalls as UK presenteeism hits post-pandemic high

A major six-year study from Warwick Business School has revealed a critical gap in UK workplace mental health support, with the number of firms offering initiatives falling to its lowest level since the pandemic, while employees working when unwell has hit a new high.

Research from the Enterprise Research Centre (ERC) at Warwick Business School found that, despite three-quarters of business leaders acknowledging their responsibility for staff mental health, only half have supportive practices in place.

The final report, “Workplace mental health and wellbeing practices, outcomes and productivity,” is based on annual surveys of small and medium-sized enterprises (SMEs) from 2020 to 2025. It identifies presenteeism - employees working when unwell or routinely beyond their contracted hours - as a particular concern. In 2025, thirty-eight per cent of businesses reported some level of presenteeism, the highest rate recorded since the survey began.

The study highlights a worrying reversal in the adoption of mental health initiatives. Uptake rose during the pandemic but has since stalled and declined, with only fifty per cent of firms reporting having initiatives in 2025, down from a post-pandemic peak of fifty-seven per cent in 2024. The smallest firms and those in production, construction, and wholesale/retail sectors were the least likely to have plans to adopt any initiatives.

The Economic Imperative for Action

Stephen Roper, the study’s Principal Investigator and Director of the ERC, emphasised the urgent economic case for addressing the issue.

“With poor mental health costing employers £51 billion a year through absenteeism, presenteeism, and staff turnover, the economic case for action is urgent,” said Professor Roper. “We can no longer afford to treat wellbeing as a peripheral issue. Our research shows we need a fundamental shift from reactive, short-term measures to sustained, strategic investment in mental health, which our data shows are key drivers of long-term productivity.”

The research found that while short-term adoption of mental health practices can initially lead to productivity dips due to adjustment costs, long-term adoption of strategies like mental health budgeting and wellbeing monitoring is consistently linked to productivity gains. The study also notes that Swedish firms, which are more proactive in their approach, experience fewer business impacts from mental health-related absences compared to English and Irish firms.

A Roadmap for Change

To bridge the significant “attitude-to-action gap,” the report outlines 10 policy recommendations. These include launching a collaborative national campaign to convince senior leaders of the business case for investing in mental health and creating a clear, free entry point for businesses to access trusted guidance.

A key recommendation is the establishment of a dedicated centre of research on productivity and workplace mental health to monitor trends, gather robust evidence on what works, and inform future policy and support.

Dr Vicki Belt, Deputy Director of the ERC, said: “Our evidence shows that creating a psychologically safe climate where employees feel supported is fundamental to wellbeing and performance. The recommendations provide a clear roadmap for policymakers and employers to work together to address this critical issue, which is central to tackling the UK’s productivity puzzle.”

The report underscores that strategic, long-term investment in workplace mental health is not just a wellbeing imperative but a core component of a productive and resilient UK economy.

Further reading:

Will the Government's Small Business Plan deliver for SMEs?

UK start-up boom hits record high, led by women and minority groups

Business growth faltering as just 2% of UK start-ups reach £1m turnover

The Enterprise Research Centre is the UK’s leading independent research institute on productivity and innovation in SMEs, funded by the ESRC, Department for Business and Trade, Innovate UK, the Intellectual Property Office, and the British Business Bank.

Stephen Roper is Professor of Enterprise at Warwick Business School and Director of the Enterprise Research Centre (ERC).

Vicki Belt is Deputy Director of Impact and Engagement at the Enterprise Research Centre at Warwick Business School.

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