Incorporate good mental health as part of organisational resilience

Employee mental health is increasingly becoming a defining factor of an organisation's health.

These days we all have to juggle cost-of-living pressures and expectations of hybrid working with broadening demographic gaps and a post-pandemic workforce evolution.

Against this backdrop, employee mental health has emerged as a defining factor of organisational resilience.

At the start of the year, the UK government’s own whitepaper claimed that mental health accounts for 25% of the rise in long-term sickness among 16-49-year-olds, contributing to 2.8 million people “locked out” of work due to long-term or intermittent illness.

The implications of increased absenteeism, burnout and attrition are stark: in pure commercial terms, the recent Keep Britain Working study found that each day of absence costs UK businesses on average £120. As well as impacting productivity, it also affects talent pipelines and undermines company culture.

A workforce that feels unsupported mentally and emotionally becomes less engaged, less innovative and less loyal. On the flip side, a progressive strategy - properly communicated and aligned to a workforce’s needs - can bolster mental health, reduce risk of absence and build organisational resilience.

Why reward and benefits are key to organisational resilience

Reward and benefits are no longer simply transactional formalities, they are now strategic tools that can shape psychological safety, reduce stress factors and reinforce a culture of care.

When designed thoughtfully, they address employees’ mental, physical and financial wellbeing in ways that prevent issues before they escalate, by:

Supporting daily pressures before they accumulate
Providing access to tools that enable healthier choices
Creating environments where employees feel valued, connected and safe

Let’s look at some key areas where reward and benefits can have genuine, measurable impacts.

1. Mental health support: Prevention beats cure

Preventative health services are becoming a cornerstone of effective wellbeing strategies. Access to online GPs, counselling, early intervention services and EAPs can reduce anxiety around everyday health concerns and prevent minor issues from escalating into absence.

Integrated health prevention services like employer-led cash plans can also help workers access dental, optical and physio support, reducing the stresses linked to pain, cost or long NHS wait times.

This is particularly valuable for low-income or deskless workers who are often disproportionately affected by financial strains, or concerns around taking time off. When these services are delivered via accessible digital tools – and ideally set up in the first instance with a face-to-face session – both individuals and employers feel the benefit.

2. Financial wellbeing to reduce stress

Financial pressures remain one of the top contributors to declining mental health. Employers can lift that burden by offering:

Retail discounts and voucher schemes through digital HR apps
Financial planning tools and education geared to all generations
Salary sacrifice schemes for tech, transport and pensions
Flexible pay options that help employees manage cashflow challenges

These benefits do more than save money, they reduce chronic stress and enable employees to focus on their job and thrive at work.

3. Recognition as a mental health tool

Feeling valued is one of the most powerful psychological protectors in the workplace. If designed to be timely and inclusive, recognition schemes boost morale, reinforce positive behaviours and strengthen interpersonal relationships.

Recognition also supports and engages younger workers, who place high importance on immediacy and purpose in the workplace. A digital recognition platform brings fairness and accessibility, ensuring every employee, whether office-based or deskless, can give and receive recognition or simply be thanked for a job well done.

Managers can also directly benefit from an enhanced connection with workers, and from the increased engagement with benefits through signposting and company-wide communications.

4. Supporting healthy working patterns to prevent burnout

Hybrid working has undeniably reshaped worker expectations. A rigid five-day office-based week now risks excluding workers with disabilities, neurodivergence or caring responsibilities, and can bring a genuine talent cost to organisations resisting flexibility.

Progressive reward strategies can include:

Flexible working options (compressed weeks, varied hours)
Support for remote set-ups
Physical wellbeing incentives (cycling schemes, gym access)
Wellbeing content hubs offering nutrition, sleep and stress resources
Support for specific life stages or challenges, for example becoming a parent, being assessed for neurodivergence or even managing the stress of divorce

These measures foster balance and strengthen emotional resilience.

5. Inclusive benefits for a multigenerational workforce

Demographic analysis and employee listening are essential to tailor benefits for different life stages, from student loan support for Gen Zs to retirement planning for older workers.

This inclusive approach not only supports wellbeing but cultivates a culture where every employee feels understood and valued.

6. Communicating the EVP, and embracing digital

Even the most generous benefits packages can fail if employees don’t know they exist. Shockingly, only 30% of employees understand their benefits package. From recruitment and onboarding to quarterly reviews, consistent communication, manager education and employee feedback loops are essential to embed a culture of wellbeing.

Digital platforms offering SSO, personalised comms and mobile accessibility also boost engagement by ensuring benefits actually reach every employee, especially those lacking traditional HR touch points. Face-to-face opportunities to educate around benefits are also highly valuable and increase engagement.

In summary

There is no organisational resilience without workforce resilience. By leveraging a strategic and preventative reward and benefits package that addresses mental, physical and financial wellbeing, organisations can reduce the risks of burnout, absenteeism and attrition while nurturing a healthier, happier and more committed workforce.

The message is clear: invest in our people now or we pay the price later.