An economic model to assess the costs and benefits of workplace mental wellbeing interventions: A flexible tool for employers and decision makers

Karina Watts, Hannah Ross, Emily Gregg and Matthew Taylor

PLOS Mental Health, 2026, vol. 3, issue 4, 1-12

Abstract: Poor mental wellbeing is one of the leading causes of long-term sickness absence from work and may lead to absenteeism, presenteeism and staff turnover, costing UK employers an estimated £51 billion annually. This study uses economic modelling to provide data on costs and benefits to employers who are considering implementing a workplace intervention to improve wellbeing. Additionally, the analysis is used to assess any changes in employee outcomes (e.g., productivity and staff turnover). A cost-consequence model with a one-year time horizon was developed to assess the impact of workplace mental wellbeing interventions. Because all workplaces are different, it is not useful to present one single base case to generalise across all settings. Instead, the model generates a series of hypothetical case studies, with varying levels of absenteeism, presenteeism and staff turnover, as well as different levels of productivity and staff replacement costs. Several mental wellbeing interventions are compared with ‘no intervention’ (current practice) to calculate the total incremental costs and incremental cost per employee. In a hypothetical case study with 50 employees and an intervention cost of £100, the intervention has a net cost saving of £4,207 per employee. Savings are due to reductions in absenteeism and presenteeism. Sensitivity analysis and scenario analysis assess the impact of varying each input, to reflect that inputs will vary substantially for each individual organisation and setting. The intervention is more likely to be cost saving when the baseline levels of absenteeism, presenteeism and staff turnover are high, and the intervention cost is low. Mental wellbeing interventions may influence a range of outcomes, but outcomes demonstrating a mental wellbeing benefit to employees may be challenging to translate into monetary value. The model can be used by decision makers and employers to understand the potential economic and wellbeing implications of implementing workplace mental wellbeing interventions.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pmen00:0000601

DOI: 10.1371/journal.pmen.0000601

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