It's an issue that many employers would prefer not to deal with, but with a new report claiming that mental health problems could affect as many as one in six employees, it's one they can't afford to ignore

The study by the Sainsbury Centre for Mental Health put the overall annual cost to employers, including sickness absence and lost productivity, at nearly £26bn and made a clear business case for companies to help staff with mental health problems.

Steps to help reduce the costs for businesses of all sizes include recognising the problem early, encouraging managers to be supportive and flexible, and ensuring regular contact with members of staff who have to take time off.

Shaw Trust, a charity group that aims to get disadvantaged people, including those with mental health problems, into employment, has also researched the issue of mental health in the workplace.
Tim Cooper, managing director for work and independence, says: "Employers underestimate the extent to which employees suffer stress and anxiety, and often do not have policies and procedures in place to deal with this. There is also a fear of the unknown, which can lead people to discriminate inadvertently."

To help employers manage this issue Shaw Trust is launching an online resource for managers to support them in conversations with staff and help them spot-check their policies and practice, helping to save them time and money in the long run.

Cooper insists that this is not just an issue for the human resources department to take on board.
He explains: "Line managers are often in the best position to spot potential problems, where a member of staff may be struggling to cope, and they also need to be included in any practical support made available by the organisation." But employers could do more, particularly when it comes to recruitment. According to a report by the Chartered Institute of Personnel and Development and KPMG consultants, just over half, (52 per cent) of employers say they have never hired anyone with a history of mental illness.

Some 40 per cent of people who claim incapacity benefit suffer from depression or anxiety disorders, and reducing this level is key to the government's objective of getting 80 per cent of all people of working age into work. If employers need further evidence that those affected by mental health problems can be an asset to their organisation, they will find it among the growing number of businesses in the social firms sector. 

These are market-led companies that create paid employment for severely disadvantaged people. The sector has grown from five businesses in 1996 to 137, creating more than 1,600 full-time jobs, over half of which are held by severely disadvantaged people, including those with mental health problems.

Chief executive of Social Firms UK Sally Reynolds says: "Progress in the sector has been slow, but there have been some great success stories. It is a cultural mind shift that will take years to fully get across, but there is a growing recognition that the disadvantaged and the disabled can make a valuable contribution to the economy."