A new study has revealed that only 53% of employees across Europe work in psychologically healthy environments.
The findings from a survey carried out by Great Place To Work highlight the growing concern about the mental health and wellbeing of workers, especially in the aftermath of the pandemic and ongoing economic challenges. While some regions and sectors are making strides, others still have a long way to go in fostering psychologically supportive workplaces that nurture employee engagement, wellbeing and retention.
WORRYING PICTURE FOR THE UK
The survey, which surveyed nearly 25,000 employees across 19 European countries, paints a worrying picture for the UK, where only 52% of employees report working in psychologically healthy organisations— slightly below the European average. This puts the UK in a precarious position, with significant room for improvement if it is to match the healthier work environments found in Northern Europe.
Countries like Norway, Denmark and the Netherlands are leading the charge when it comes to prioritising workplace psychological health. They outperform the lowest-ranking nations – including Greece, Luxembourg, Poland, and Italy – by more than 20 percentage points. For the UK, this stark gap signals a need for urgent action to improve workplace mental health.
GOVERNMENT & PUBLIC SECTOR STAFF REPORT LOWEST SATISFACTION RATES
One of the most concerning insights from the report is the dismal mental health satisfaction reported by employees in the government and public sector. Just 48% of public sector workers reported feeling that their workplace provided psychological and emotional support. This figure is lower than the 55% of private sector employees who report the same.
The challenges facing public sector organisations – such as overwhelming workloads, resource constraints and the emotional strain of managing complex societal issues – are key contributors to this low level of psychological health. Many of these organisations are also lagging in terms of mental health funding and support, which exacerbates the issue.
PSYCHOLOGICAL HEALTH & RETENTION LINK
For employers across Europe, the takeaway is clear: organisations that invest in psychological health are reaping the benefits when it comes to employee retention. The research reveals that employees working in psychologically healthy environments are six times more likely to stay with their employer long-term.
This statistic is critical for businesses grappling with high turnover rates and the costly recruitment process. Retaining talent is crucial, especially when employees in top-performing companies report a significant decline in psychological health after two to five years of service – a time when many workers start to feel disengaged and disillusioned.
PERCEPTIONS AROUND PSYCHOLOGICAL HEALTH
The study also highlighted an interesting divergence in perceptions between senior leadership and employees on the state of psychological health in the workplace. While 67% of senior leaders agreed that their organisation was psychologically healthy, only 51% of non-managers and mid-level managers shared this sentiment.
This gap suggests that leaders may not be fully in tune with the lived experiences of employees at all levels. To close this perception gap, organisations must foster open dialogue between leadership and staff to better understand the needs of their workforce and create more inclusive, supportive environments.
KEY DRIVERS OF PSYCHOLOGICAL HEALTH AT WORK
According to the survey, several factors are key in fostering psychological health in the workplace. They include:
- Management showing interest in employees as people.
- Management being genuinely open to suggestions and ideas.
- Management involving staff in decisions affecting their work.
- Work-life balance being actively encouraged.
- Employees being paid fairly.
- Employees feeling free to be themselves.
- Employees being made to feel welcome when they join.
In short, employees value leadership that shows a genuine interest in them as individuals and actively encourages work-life balance. The importance of fair pay and being able to be oneself at work are also key.
Sara Silvonen, Senior Consultant & Wellbeing Lead at Great Place To Work UK, emphasised the importance of a supportive work environment. “The psychological health of an organisation refers to whether the intangible work environment – everything you can’t see – provides a solid foundation for high-performing, thriving employees. It encompasses a wide range of psychosocial factors such as transparency, empowerment, managerial values, support and relationships,” stated Silvonen.
CHAMPIONING PSYCHOLOGICAL HEALTH AT WORK
To foster a psychologically healthy workplace, organisations need to prioritise the key drivers identified in the research. Leaders must focus on employee wellbeing by promoting transparency, supporting work-life balance, and ensuring that staff feel valued and included.
With organisations across Europe recognising the vital link between mental health and retention, the hope is that more businesses will act decisively to create environments where employees feel supported, engaged, and motivated to stay. As we move forward, the onus is on both public and private sector employers to invest in creating workplaces that champion psychological health for the benefit of employees and the business alike.
Click here to download the full report.
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