This week is Mental Health Awareness Week – a crucial time for businesses to re-evaluate their policies and consider whether they are truly supporting their employees’ wellbeing.

With mental health issues becoming increasingly prominent in workplace discussions, forward-thinking organisations are recognising that traditional reward strategies must evolve to address this critical aspect of employee health.

Recent research from Brightmine paints a concerning picture of the current landscape. Sickness absence is on the rise, with the average number of days lost per employee increasing to 4.9 at a cost of £663.63 per person to employers in the last year. Even more telling is that approximately half of organisations report mental health issues as the primary drivers of absence, particularly for long-term leave.

Bar Huberman, Content Manager, HR Strategy & Practice at Brightmine, notes: "HR professionals are questioning whether the rise is due to more people experiencing poor mental health, or whether we’re finally seeing the impact of a cultural shift that allows employees to be more open about their struggles."

Rethinking Reward Strategy Through a Wellbeing Lens

The traditional approach to employee benefits has often focused on financial rewards, career progression, and physical health insurance. However, the evolving workplace landscape demands a more holistic view that places mental wellbeing at the core of reward strategies.

Elements of a Mental Health-Focused Reward Strategy

1. Flexible Working Arrangements

Flexibility is no longer just a perk but a necessity for many employees managing their mental health. Organisations that incorporate flexible working options into their standard benefits package demonstrate recognition of diverse employee needs and circumstances.

2. Mental Health Support Services

Progressive reward strategies now include access to counselling services, mental health apps, and Employee Assistance Programmes as standard offerings rather than supplementary additions.

3. Wellbeing Allowances

Some companies are introducing dedicated wellbeing allowances – financial benefits that employees can use specifically for activities or services that support their mental health, from meditation classes to therapy sessions.

4. Recognition of Preventative Measures

Forward-thinking reward structures incentivise preventative mental health practices, such as regular breaks, mindfulness sessions, and proper utilisation of annual leave to prevent burnout.

The Business Case for Mental Health Investment

While there’s a clear moral imperative to support employee mental health, the business case is equally compelling. With each employee absence costing an average of £663.63, organisations that fail to address mental wellbeing face significant financial implications.

Beyond direct costs, poor mental health affects productivity, creativity, and team dynamics. Conversely, research consistently shows that employees who feel supported in their mental health demonstrate higher engagement, loyalty, and performance.

Creating a Culture That Supports Mental Wellbeing

Huberman emphasises that policies alone aren’t enough: "Supporting staff through meaningful policies that promote conversations, training for line managers, and a culture of openness is more vital than ever."

A truly effective mental health-focused reward strategy must be underpinned by organisational culture. This includes:

• Training managers to recognise signs of mental health struggles
• Normalising conversations about mental wellbeing
• Ensuring senior leadership visibly prioritises and models healthy work-life boundaries
• Developing clear pathways for employees to access support without stigma
• Looking Ahead: The Future of Integrated Reward Strategies

As we observe Mental Health Awareness Week, it’s clear that the most successful organisations will be those that seamlessly integrate mental wellbeing into their core reward strategies rather than treating it as an add-on benefit.

This approach recognises that employee wellbeing and business success are not competing priorities but complementary goals. By investing in comprehensive mental health support, companies not only fulfil their duty of care to employees but also position themselves for sustainable growth and resilience.

As Huberman concludes: "It is clear from this that organisations need to prioritise mental health in order to minimise the impact not just on the business, but also on the wellbeing of their employees."

The message for HR leaders and executives is clear: mental wellbeing must move from the periphery to the centre of reward strategy planning. This Mental Health Awareness Week provides the perfect opportunity to begin this essential transformation.