The link between mental health struggles and poor workplace cultures

Stuart Cheesman

By Stuart Cheesman, Strategist from O.C. Tanner.

On average, we spend 90,000 hours at work, equating to a third of our lives and yet research suggests that many employees are anxious, depressed and/or burnt out.

According to Deloitte, over 60% of UK employees are experiencing at least one characteristic of burnout, with some struggling with serious mental health issues. The root causes of this mental health epidemic are of course complex, however poor workplace cultures are exacerbating employees’ mental health struggles.

Mental health is costly!

Poor mental health is costing UK employers £51 billion a year, and this isn’t just in relation to absenteeism. Presenteeism, ‘quiet quitting’, workplace accidents and formal grievances are often worse when there’s a high number of employees suffering depression or anxiety. But it doesn’t need to be this way, as when organisations actively do something to improve their employees’ mental health, they reap the rewards in terms of productivity. For every £1 spent on supporting the mental health and wellbeing of their workforce, employers get about £4.70 back in increased productivity (Deloitte).

A proactive approach

With a profound duty of care, many employers retrospectively support and provide costly processes, services and assistance to aid their employees.  Provisions include mental health first aiders, employee assistance programmes and various other support services, however it’s often left too late to really address employees’ mental health, vitally overlooking the aggravating factors within working environments. From insensitive managers and conflict within teams, through to not being allowed to ‘switch off’ and feeling unappreciated, a poor workplace culture can cause significant harm to mental health.

Dissecting your culture

How do you determine if your culture is hurting your people’s mental health? There will be obvious signs such as decreasing employee performance (and subsequent poor business results), higher rates of staff turnover and absenteeism. However, employee listening should also be used to give you a deeper and real-time understanding of how your employees are feeling and why. Via surveys, forums and one-to-ones, you can determine the state of your leadership and overall culture. Perhaps cultural change initiatives are required with a greater focus on inquisitive and empathetic leadership, for example.

Any changes must happen at an organisational level, creating a healthy workplace culture which encourages connection, care and community.

The key elements of a thriving culture

As well as listening to what your people think, leaders must honestly and impartially assess a number of key factors that influence organisational culture. These factors go a long way towards mitigating or worsening mental health struggles.

The first of these is purpose with the second being opportunities. Every single employee wants to feel that their work has meaning, and is contributing to an overarching purpose which benefits the greater good (rather than simply helping to line the pockets of the shareholders). They also want to be given opportunities to grow and develop both personally and professionally. When both of these factors are an integral part of an organisation’s culture, burnout is significantly reduced. In fact, a strong sense of purpose reduces the likelihood of employee burnout by 82% and depression by 50%. When the employee is given opportunities, the odds of burnout is reduced by 83%.

Other key elements that foster a thriving, supportive culture include a modern leadership approach, a focus on wellbeing, and frequent and meaningful recognition. Leaders who are empathetic, empowering and get to know employees as individuals foster a compassionate and understanding workplace environment that reduces the likelihood of mental health struggles. Wellbeing and appreciation are also crucial for ensuring employees feel cared about and valued, with individuals who give recognition to others also reporting improved mental health. According to O.C. Tanner’s 2025 Global Culture Report, employees who gave recognition in the past 30 days reported significant decreases in the odds of burnout (57%), probable diagnosis of anxiety (24%), and probable diagnosis of depression (28%). Plus, when appreciation is integrated into workplace culture, the likelihood of burnout is decreased by a phenomenal 87%.

A final word

Encouraging a “grin and bear it” approach to workplace adversity and conflict can dramatically accelerate employees’ mental health struggles, significantly impacting business resilience and hindering the organisation’s bottom line. Instead, leaders must champion a positive and supportive culture that lowers the odds of burnout, anxiety and depression, ultimately leading to increased employee attendance, productivity and profit.

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