How to Create a Mental Health Policy That Works for Your Organisation

Mental health is no longer a secondary concern for businesses. Organisations must prioritise employee well-being, with mental health-related absences costing UK employers an estimated £53-56 billion per year (Deloitte, 2024). One of the most effective ways to address this is by creating a clear, actionable mental health policy to underpin a meaningful whole organisation approach where everyone has a collective responsibility for the mental well-being of one another.

What Is a Mental Health Policy?

A mental health policy is a formal statement outlining your organisation’s commitment to supporting employee mental health and wellbeing. It provides a framework for addressing mental health issues, promoting awareness, and ensuring employees feel supported at work.

Why Does Your Organisation Need a Mental Health Policy?

Reduce Absenteeism: Clear policies help employees access support earlier, reducing time off due to mental health issues.
Boost Productivity: Employees who feel supported are more engaged and productive.
Legal Compliance: UK laws, such as the Equality Act 2010, require employers to provide reasonable adjustments for mental health conditions. A policy ensures you’re compliant. However, effective policies created in collaboration go beyond compliance.
Improve Retention: A proactive approach to mental health makes employees feel valued, increasing loyalty and retention.

Steps to Create a Mental Health Policy That Works

1. Assess the Needs of Your Organisation

Every workplace is different. Conduct an anonymous survey to understand your employees’ mental health challenges and needs. Analyse existing absence data to identify patterns related to stress, anxiety, or burnout.

2. Define the Policy’s Goals

Be clear about what your policy aims to achieve. Goals might include:

Reducing stigma around mental health
Increasing access to support services
Training managers to recognise and address mental health concerns

3. Involve Employees in the Process

Co-create the policy with employees to ensure it reflects their needs and concerns. Establish a mental health working group with representatives from different departments to gather diverse perspectives.

4. Some of the Key Elements in the Policy

A comprehensive mental health policy should cover:

Purpose: Why the policy exists

Scope: Who the policy applies to

Commitments: How your organisation will support mental health, e.g., through flexible working or Employee Assistance Programmes (EAPs)

Training and Awareness: Plans for mental health training and regular awareness campaigns

Support Pathways: Clear steps for employees to seek help, including access to counselling or occupational health services

Manager Responsibilities: How leaders should approach mental health conversations and accommodations

5. Train Your Leaders

Managers are critical to the success of your policy. Provide training on mental health awareness, how to have sensitive conversations, and recognising early signs of mental health struggles. Research by Mental Health England in 2024 found that organisations with trained managers saw a 30% reduction in mental health-related absences.

6. Promote and Communicate the Policy

Once your policy is in place, share it widely. Use team meetings, newsletters, and your intranet to ensure all employees know about the policy and how to access support.

7. Regularly Review and Update the Policy

Mental health needs to evolve, so your policy should, too. Schedule annual reviews and gather feedback from employees to identify areas for improvement.

An Organisation in the Spotlight

Barclays: The company offers an award-winning mental health programme, including mental health first aiders and employee resource groups. Their policy helped reduce absence rates and increased employee satisfaction (Barclays Impact Report, 2024).

Final Thoughts

A well-crafted mental health policy is more than a document—it’s a commitment to your employees’ well-being. By supporting mental health, your organisation can create a positive, inclusive workplace culture that benefits everyone.

Not sure where to start? Contact us to learn about our consultancy services. Together, we can create a mental health policy that supports your organisation or community.