The financial benefits of improving mental health
Exploring the impact of mental health on the rail industry, the benefits of proactive management, and insights from the 'Achieving Change' project.
Joana FaustinoPrincipal Health and Wellbeing Specialist, RSSB
The rail industry faces significant challenges in managing employee mental health. This is due to its unique working conditions and demanding environment. However, addressing mental health is not just a moral imperative. It also offers substantial financial benefits for organisations.
These benefits are relevant even for organisations new to mental health initiatives. The Railway Mental Health Charter (RMHC) was set up to help all organisations in rail develop and implement effective mental health strategies. But you don’t have to be an RMHC member to get financial or performance benefits from addressing mental health. The sizeable benefits can be gained by all organisations.
Our new case studies with three anonymous organisations show how benefits can be realised. They also show the obstacles to success and what senior rail leaders can do about them.
Let’s start with the financial impact of poor mental health on rail, which can be profound. Findings from the 2020 cross-industry mental health survey revealed that more than one in three rail employees met the criteria for a clinical mental health condition. Affected employees had an average of 24 days of sickness absence per year. This has significant costs in terms of lost productivity. With an average salary cost of £264 per day, this equates to an estimated cost of £10.7 million per year for rail.
Moreover, research by Deloitte estimates that the cost per employee with poor mental health in the transport and storage industry is £1,377 annually. Using this figure for the 43% of rail employees with mental health conditions in the 2020 survey, the potential estimated cost is £142 million per year.
RSSB’s health and wellbeing data project has consistently shown poor mental health as the leading cause for sickness absence in rail and the biggest contributor to the industry’s Health and Wellbeing Index. These figures emphasise the critical need for rail organisations to take proactive steps in managing mental health.
These figures also show that the potential benefits of addressing mental health in rail are sizeable. Nor are they limited to organisations that have already signed up to the RMHC. Even organisations exploring their response to mental health issues for the first time, or those without a formal mental health strategy, can gain significantly.
Improved mental health can lead to reduced sickness absence, enhanced productivity and performance, and a more engaged workforce. So, addressing mental health is an investment in the overall health, safety, and efficiency of the organisation, with potential productivity and financial returns.
Between 2022 and 2024, RSSB worked with three rail organisations on the ‘Achieving Change’ project. The original aim of this project was to implement and measure the impact of targeted mental health interventions.
However, it encountered some unexpected obstacles. Learning from these gives valuable insights that can be used when managing mental health in rail.
The obstacles uncovered in the project were operational and technical issues. In the case studies, these got in the way of effective mental health management.
Your organisation can avoid repeating these difficulties. Awareness of potential obstacles can help senior leaders in the development of effective mental health strategies.
The obstacles observed were:
lack of specific roles to lead health and wellbeing
inadequate resourcing
absence of a robust framework and quality data
lack of leadership support
limited involvement from frontline staff.
As a result of these issues, the actual benefits of addressing employee mental health were less than they could have been. Senior rail leaders, and those responsible for health and wellbeing within individual organisations, can use these insights.
So, what can rail leaders, and those responsible for health and wellbeing, do to overcome these obstacles and achieve better benefits for their organisations? We’ve published separate, brief, guidance documents for each audience so they can find the next steps they need.
Check out our new case studies and guidance.
Get them today