Mental health and a multi-generational workforce: what employers need to know

Key takeaways:

• New polling has shared insights on the impact of mental health on productivity at work.
• “Poor mental health can have a direct and measurable impact on concentration, decision‑making, energy levels and motivation,” explains Dr Katie Tryon, Deputy CEO at VitalityHealth.
• Find out why early intervention is key - and why a one-size-fits-all approach to implementing support may not work.

While mental health struggles in the UK are nothing new, there is growing opportunity for employers to provide better support, both in the workplace and beyond.

According to data, almost two-thirds of young adults aged 16 – 25-years-old in Britain say they’ve experienced or were experiencing mental health difficulties[1], whilst separate analysis has found that those aged 16 – 24-years-old are the most likely group to experience mental health conditions[2].

It’s not without reason that Professor Peter Fonagy, Head of the Division of Psychology and Language Sciences at UCL, has described young people’s mental health as in ‘crisis’[3].

Vitality’s Britain’s Healthiest Workplace report found that younger employees are at a significantly higher risk of anxiety and depression, with 14% of under 35s at risk, compared to 5% for those aged 50 and above[4].

Mental health conditions are now the primary cause of economic inactivity among young people. This includes both being absent from work and, for those that are in work, mental health is impacting productivity too.

According to recent Vitality polling, among those working, 72% of Gen Z and 69% of Millennials said that their mental health has had an impact on their productivity[5].

By contrast, 58% of Baby Boomers report no impact on their productivity due to their mental health[5].

Worsening productivity and the cost to businesses

One-fifth said it had a moderate impact on productivity (22%) and almost a tenth (8%) reported that it had great impact[5].

Unsurprisingly, poor mental health is driving rates of absenteeism. Overall, 15% say they have taken time off work – with this figure rising to 20% among Gen Z and 22% among Millennial adults[5].

Lost productivity – whether due to absenteeism or presenteeism – can have a significant impact on business productivity and workplace performance.

As Dr Katie Tryon, Deputy CEO at VitalityHealth explains, “poor mental health can have a direct and measurable impact on concentration, decision‑making, energy levels and motivation.”

“These effects don’t just affect relationships, daily functioning and overall quality of life – they show up at work too,” she adds.

For employers, lost output can carry a large financial impact; Vitality’s Britain’s Healthiest Workplace report found that, between 2014 and 2023, lost productivity due to ill-health was estimated to have cost the UK economy a staggering £860 billion[4].

Previous data from Deloitte found that the cost to businesses of poor mental health was £51 billion per year[6]*.

Why mental health early intervention is critical

As with any illness, early intervention is crucial in improving mental health outcomes. “It can help reduce severity, lower long-term impact, shorten recovery time and prevent mental health challenges from escalating into more serious conditions,” Dr Katie explains.

But, with five generations in the workforce – and each demographic having different needs and expectations – employers should adopt a considered approach to supporting mental health to ensure differing needs are catered for.

"A one-size-fits-all approach may not work because different people have different needs."

Dr Katie Tryon, Deputy CEO, VitalityHealth

Take Gen Z for example. While it has been widely reported that the younger generations are struggling with their mental health, the Vitality polling found that 45% of Gen Z regularly look after their mental health[5].

Despite this, Gen Z are the least likely to feel comfortable speaking to a mental health professional (24%) and are more open to speaking to anonymous online support than other generations[5].

Younger employees may, therefore, be more open to accessing support from digital tools, such as Headspace or guided digital mental health support via the Wysa app.

In contrast, older generations feel much more comfortable speaking to a mental health professional, according to the Vitality polling[5].

If speaking to a human expert is the preferred choice, Vitality health members have access to up to eight Talking Therapy sessions each plan year, such as Cognitive Behavioural Therapy (CBT) and counselling.

Alongside providing access to intervention tools, employers can also help to raise awareness of mental health in the workplace and the role that lifestyle factors such as sleep, nutrition and exercise can play.

“Lifestyle behaviours don’t replace clinical care,” Dr Katie explains, “but they play a critical role in building resilience, reducing risk, and shaping how people respond to stress, illness and treatment – ultimately easing pressure on clinical services,” she adds.

Employers must offer a range of tools to their workforce

Mental health can affect employees at any life stage but, as Vitality polling has suggested, it could be impacting some demographics more than others.

For employers and HR, this should be a key consideration when implementing support.

“A one-size-fits-all approach may not work because different people have different needs,” explains Dr Katie. “Offering a range of tools and benefits will ensure that they can access the support when and how they need it.”

[1] One in three young people surveyed expect to need mental health support in coming year, UCL, September 2025

[2] The dramatic rise in mental health struggles among young people, Health Equals, October 2025

[3] Understanding the crisis in young people’s mental health, The Health Foundation, January 2025

[4] 10 Years of Britain’s Healthiest Workplace: the changing face of the UK at work, Vitality, 2025

[5] Research was conducted by Opinium among 2,000 UK adults in April 2026

[6] Poor mental health costs UK employers £51billion a year for employees, Deloitte, May 2024

*The findings in this report are based on a survey of 3,156 working adults (1834 were working parents) across the UK, conducted in October 2023 by YouGov on behalf of Deloitte. The findings fed into Deloitte’s models for the costs to employers of poor mental health and the returns on investing in support measures to improve mental wellbeing.

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