From Perks to Priorities
Once upon a time, corporate wellbeing meant beanbags in breakout rooms, fruit bowls by the lift, and the occasional mindfulness workshop when the budget allowed. But the days of tokenistic gestures are rapidly fading. Mental health has shifted from a nice-to-have perk to a boardroom-level priority. It is no longer framed as a lifestyle concern, but as a strategic imperative.
“The Quiet Revolution” is how some commentators have described it: a cultural pivot driven not just by pandemic-induced stress, but by a generational shift in values. Millennials and Gen Z employees expect openness, support and action, especially on mental health. They’re far more willing to call out performative policies, and with social media giving every worker a public voice, companies can no longer afford to ignore the noise.
“Beyond the Beanbags,” mental health has become a business-critical issue. Poor workplace wellbeing is now clearly linked with increased absenteeism, high turnover, lost productivity and reduced innovation. Deloitte estimates that poor mental health costs UK employers up to £56 billion annually, a staggering rise of 25% since 2019. “Mental health is no longer just a wellness issue, but a workplace survival issue,” says the HR director of a leading tech firm. It is now also one being watched closely by boards, investors and ESG analysts alike.
Mental Health as a Corporate Mandate
The ESG agenda is undergoing a quiet revolution, where employee mental health is no longer a nice-to-have but a strategic necessity. While much of the ESG conversation has focused on emissions reductions and boardroom diversity, the ‘Social’ pillar is gaining sharper definition through the lens of workforce wellbeing. In short, it’s getting personal.
Mental health is now moving from the margins to the metrics. Institutional investors are starting to scrutinise how organisations genuinely support psychological wellbeing. Gone are the days of one-off wellbeing webinars and token mental health days. This is the era of “From Lip Service to Legal Risk” and “The Empathy Economy”. It’s a climate where failing to provide embedded, measurable mental health frameworks is increasingly seen as a reputational and financial liability.
In 2023, global ESG rating agencies such as MSCI and Sustainalytics began integrating mental health factors into their corporate assessments, evaluating elements like psychological safety, burnout-related attrition, and access to continuous mental health support. Major institutional investors such as BlackRock and Legal & General have gone further, probing companies at AGMs with questions like: What proportion of your leavers cite mental health or burnout? and How are mental health policies reflected in your line management training?
As an example of how positive integration can happen, Unilever now trains over 10,000 managers in mental health first aid and reports wellbeing metrics in its sustainability disclosures. Meanwhile, Salesforce publicly tracks employee wellbeing scores alongside financial performance. The direction of travel is clear: mental health has become a boardroom issue. For businesses serious about ESG, it’s no longer enough to offer helplines, it’s about embedding empathy, accountability and transparency at the core of organisational culture.
Case Studies – From Policy to Practice
In terms of real progress, several organisations are leading by example, showing how mental‑health strategies can evolve from policy statements into board‑level priorities.
1. A Bank: Psychologically Safe Team Check‑Ins
A major financial institution introduced regular “psychological safety” check‑ins during team meetings. Leaders are trained to ask open‑ended questions such as “How are we coping this week?” and “Is anyone feeling overwhelmed?” These structured sessions, guided by tools like the Psychologically Safe Team Assessment, uncover stress early and foster trust.
2. A Startup: Onboarding and Leadership KPIs
A fast‑growing startup embedded mental health into every stage of employment. From day one, new hires are introduced not only to the business but also to wellbeing protocols, including mandatory mental health training. Crucially, managers’ performance reviews now include leadership KPIs tied to team wellbeing, measuring regular one‑to‑ones, engagement survey results, and team‑level stress indicators .
3. A Global Tech Firm: Anonymous Pulse Surveys and Action
A global technology company conducts monthly anonymous “pulse” surveys focused solely on mental health. Based on employee feedback, new initiatives, from flexible working hours to mental-health first‑aid workshops, are implemented within 30 days. Staff can request support directly, signifying a move from anonymous data-gathering to responsive action.
These firms illustrate the shift from HR-led pilots to board-approved strategy. One manufacturing giant even appointed a Chief Wellness Officer and established a cross-functional wellbeing committee reporting directly to the board, not HR. Furthermore, mental health strategies increasingly intersect with DEI priorities. Inclusive wellbeing schemes account for neurodiversity, cultural belonging and equity, recognising that stressors vary across different employee groups.
As one senior ESG analyst remarks: “We no longer see mental wellbeing as a benefit; it’s part of how we manage risk.” These real‑world examples underscore how mental health is now central to organisational DNA, not just a nice‑to‑have, but a measurable, strategic imperative.
Cracks in the ESG Scorecard – Burnout, Bias and Blind Spots
High‑performance cultures in consulting, law, fintech and the like thrive on the “pressure cooker” mentality that glorifies long hours and weekend hustle. These very firms often promote burnout as a badge of honour, ideal fodder for PR‑friendly ESG reports that rarely confront these deep‑seated issues.
Although ESG disclosures increasingly reference mental health, many remain sanitised or superficial. Few firms, for instance, publish hard KPIs: only 14 % of FTSE 100 companies report specific mental‑health targets in their filings, and fewer still offer quantified workload metrics. Meanwhile, less than a quarter even disclose mental‑health training for managers. Without performance metrics, these commitments risk becoming box‑ticking exercises, reinforced by resilience webinars dressed up as strategic interventions, rather than tackling toxic workload structures.
Stigma persists across sectors and geographies, especially where mental illness is still deemed “woke” or a professional liability. Consequently, discussions remain hushed, and many frontline or gig workers, who face some of the heaviest pressures, are routinely excluded from initiatives.
This mental‑health inequality is alarming. Those most at risk seldom find themselves within the scope of employer policies. It raises serious questions: Can ESG truly serve as a guardrail for workplace wellbeing if it fails to address burnout, bias and blind spots? Or are we merely repackaging old problems in new terminology?
The Audit Era
Looking ahead – Welcome to Workplace Wellness 2.0: The rise of the mental health audit, signalling a new era of corporate accountability. Expect to see independent, third‑party mental health audits, mirroring the evolution of diversity scorecards and climate disclosures, entering boardrooms. The groundwork is already being laid: for example, Canada’s Mental Health Commission is piloting Psychological Health and Safety Audits to embed mental wellbeing into organisational DNA .
Emerging tools, such as AI‑driven sentiment analysis, wearable‑based biosensing and employee experience platforms, promise richer, real‑time insights. Research shows wearable data can detect mood and anxiety spikes, while AI chatbots and sentiment tracking flag early signs of stress. Of course, ethical safeguards on privacy and bias are essential.
We’re also moving towards standardised mental health disclosure indices akin to climate frameworks. For proactive organisations, this isn’t just regulatory compliance, it’s strategic. Better reporting can attract top talent, win investor trust and build reputation. The challenge remains to avoid tick‑box compliance and instead foster resilient, human‑centred workplaces. After all, the companies that get mental health right won’t just survive—they’ll lead.
And what about you…?
- Are you confident that your company will be ready for future mental health audits or reporting frameworks—and what would need to change to get there?
- What practical changes could your organisation make to move beyond resilience training and address deeper issues like workload, inclusion, or leadership behaviour?
