IN TODAY’S fast-paced corporate environment, mental health has emerged as a critical factor influencing employee productivity, engagement and overall business success.
While people and culture (formerly human resource) departments and management teams often lead workplace mental health initiatives, directors can play a pivotal role in shaping corporate culture, setting strategic priorities and ensuring the long-term sustainability of a company.
By prioritising mental health at the highest level, boards can drive meaningful changes, foster a supportive work environment and, more importantly, enhance organisational performance.
Let me elaborate.
Tone and talent
The board’s commitment to mental health signals its importance across the organisation. When directors advocate for mental well-being, it influences corporate policies, leadership behaviour and employee perceptions.
A 2020 study by Deloitte found that organisations with board-level support for mental health initiatives reported 30 per cent higher employee engagement and 20 per cent lower absenteeism – all of which make the case that focusing on the mental health of a company’s talent is an investment in productivity and well-being, not just a cost expense.
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To succeed in this aspect, boards must ensure mental health is embedded in the company’s ESG framework. Research by the World Economic Forum highlights that companies prioritising employee well-being outperform peers by 10 to 15 per cent in profitability, due to reduced turnover and higher productivity.
In this regard, boards should mandate regular reporting on mental health metrics, such as employee satisfaction, stress levels and utilisation of mental health resources. A 2022 Harvard Business Review study revealed that companies tracking mental health outcomes saw a 25 per cent improvement in workforce resilience over three years.
Interestingly, global multinational corporation Motorola Solutions included in its recent 2025 proxy statement the mental health of its employee population – an extension metric of its overall health and safety tracking in respect of its employee population.
Apart from disclosing that it held 84 global well-being webinars in 2024 – covering topics such as physical health and nutrition, specific women’s and men’s health issues, life skills and parenting – the company specifically highlighted its second consecutive participation in the global Mental Health at Work Index assessment.
Conducted by US mental health entity One Mind, the index assesses the full continuum of an organisation’s workforce mental health programmes and services. Motorola reported to shareholders that it achieved an improved score of 3.7/5.0, a 24 per cent absolute increase from their initial assessment in 2023 – placing Motorola above One Mind’s global benchmark of 2.5.
Now, one may debate the motivation for the company reporting this metric – whether it is a form of humblebragging – since there are no current disclosure/reporting requirements.
One would suggest the better view is “what gets measured gets managed”, resulting in the company’s ability to track progress – in this case, mental health as an important aspect of the company’s overall approach to talent management.
The fact that the company, during its Mental Health Awareness Month, grants a paid mental health day for all employees globally, encouraging them to pause and re-energise, goes to the core of the its commitment to employee mental health – no doubt an initiative supported and sponsored by the board.
Business case
Companies are in the business of generating profits, and this is primarily achieved through its “most valuable assets” – their employees. Consequently, poor mental health in employees impacts productivity, costing businesses billions annually.
The reported data on this is staggering: According to a World Health Organization report in 2022, depression and anxiety disorders lead to US$1 trillion in lost productivity globally each year. Conversely, companies investing in mental health programmes see a return of US$4 for every US$1 spent, making the case that investment in mental health provides a handsome return.
Put simply, employees struggling with mental health issues are more likely to take sick leave or be disengaged while at work. In this regard, a study by UK organisation Mind in 2021 found that mental health interventions reduced absenteeism by 27 per cent and presenteeism (working while unwell) by 33 per cent.
Apart from the preventative aspects described above, enlightened boards should also recognise that a strong mental health culture makes companies more attractive to top talent.
LinkedIn’s 2023 workplace wellness report found that 76 per cent of employees consider mental health support a key factor when choosing an employer. Additionally, a McKinsey study in 2023 reported that organisations with robust well-being programmes experience 50 per cent lower turnover rates.
The benefits are not just internal.
Externally, a company’s mental health focus also strengthens its reputation and stakeholder trust. Investors and consumers increasingly favour companies that prioritise employee well-being.
In this regard, a 2023 PwC survey showed that 83 per cent of investors consider mental health initiatives when assessing a company’s corporate governance, as part of its employees’ health and safety focus, or as an element of the company’s overall sustainability assessment.
Driving changes
One specific area where boards can have an effective steer, is to advocate for a company’s leadership to be trained in the mental health space.
Boards should ensure executives and managers receive mental health awareness training – a form of mental health first aid, if you will, where training equips individuals with the knowledge and skills to recognise, understand and respond to signs of mental health challenges at the workplace.
The aim of the training is to help individuals in leadership and supervisory roles identify, understand and respond to these challenges – providing initial support and guidance to team members who may be experiencing a mental health problem or crisis.
Research by the US Centers for Disease Control and Prevention (CDC) indicates that leadership training reduces workplace stress by 40 per cent, a not insignificant number.
To have an effective mental health programme, companies will need to invest in employee assistance programmes (EAPs), counselling services and well-being apps, to yield significant returns.
A study by the American Psychological Association found that companies offering EAPs saw a 30 per cent reduction in healthcare costs – demonstrating the earlier point that investing in mental health yields meaningful returns for companies.
Another key to a company’s success in rolling out its mental health strategy lies in its ability to promote a culture of openness in speaking about these issues. This needs to start with the board, the same way that boards address the importance of matters such as governance and sustainability.
The goal is to create a safe space that acts to reduce and neutralise the stigma often associated with the topic of mental health: This is particularly pertinent in the workplace, where mental health struggles (if stigmatised) can impede an individual’s career progression and promotion.
As leaders of the company, the board plays a pivotal role in this matter. A report by Mind Share Partners found that employees in mental health stigma-free workplaces were three times more likely to seek help when needed.
Like ESG and sustainability, boards that measure, track and report progress in their mental health journey harness the potential to improve their efforts in this space, bringing about the many benefits described above.
To highlight the importance, boards should require regular mental health audits and benchmark progress against industry standards. A 2023 study by Deloitte reported that companies that track mental health data improve outcomes 2.5 times faster than those that do not.
Leadership
In case one concludes that board leadership in mental health is very much a foreign initiative, it should be noted that organisations such as OCBC, DBS and Otis have received the Lead Well Award, which recognises organisation-wide initiatives in creating safe and inclusive workplaces, for prioritising mental well-being in the workplace.
In the words of former president Halimah Yacob, who presented these awards, “the winners have established an important standard for employers to emulate by providing strong support for mental well-being, from the leadership down to a culture change at the workplace”.
As a well-recognised mental health advocate, her validation clearly underscores the board’s leadership role in establishing a culture that fosters mental health in a company.
By embedding mental well-being into an organisation’s DNA, companies can unlock substantial benefits – from enhanced productivity to lower turnover, ultimately contributing to stronger financial performance.
With the compelling data showing the return on investment on mental health investments, forward-thinking boards must act intentionally to foster a culture where their employees can thrive – and not shy away from discussing and providing the appropriate assistance for employees’ mental health challenges at the workplace.
One thing is clear: In contemplating the necessary factors for their companies’ continued success, boards that lead with empathy and a strategic vision for the mental health of their employees will secure a critical business advantage for their organisations.
The writer is group general counsel of Jardine Cycle & Carriage and a senior accredited director of the Singapore Institute of Directors. He sits on several boards including the charity Jardines Mindset and the Global Guiding Council of One Mind At Work, focusing on workplace mental health.
