Analysis: poor mental health in the workplace can result in reduced performance, high turnover, absenteeism and declining morale
By Siobhán Kennedy, Deirdre O'Shea and Noreen Heraty, University of Limerick
When we think of workplace safety, we usually picture visible hazards such as slippery floors, heavy equipment and fire drills, the physical risks we’re trained to identify and manage. But another set of risks exists beneath the surface, such as long hours, unrealistic deadlines, poor communication or workplace conflict, all of which can slowly erode employee mental health.
These are not random personal struggles but rather what the World Health Organisation (WHO) defines as psychosocial risks, hazards arising from how work is designed, organised and managed. A high-pressure, low-support work environment can be just as dangerous over time as a faulty ladder or exposed wire.
Yet unlike physical hazards, psychosocial hazards often go unnoticed until people are already harmed. On a personal level, psychosocial risks contribute to work-related stress, burnout, and disengagement. For organisations, they result in reduced performance, high turnover, absenteeism and declining morale.
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While supports like Employee Assistance Programmes (EAPs) and wellness initiatives are important for treating individual symptoms, they rarely address the underlying causes. Resultingly, the damage can fester, surfacing only when performance or the bottom line is impacted. Companies need to invest in the well-being of their workforce because it's a smart business move with implications for cost, culture, competitiveness and compliance.
Mental ill-health is expensive for workers and employers
Poor workplace mental health comes at a steep cost globally. Mercer’s Global Talent Trends 2024 report identifies productivity drains such as unsustainable workloads, stress, lack of feedback and poor structures - all recognised psychosocial risks. This reinforces that mental health is a strategic necessity, rather than a discretionary benefit.
IBEC estimates the cost of poor mental health to be up to €2,000 per employee annually, but the true cost is likely higher. After all, research consistently showing that younger workers, managers, and remote or hybrid workers report elevated levels of stress, burnout, and work-related mental ill-health
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A healthy workplace starts with how we work, not just how we feel
A culture that promotes and sustains mental health doesn’t mean eliminating all pressure; but rather removing unnecessary, harmful pressure that wears people down and undermines performance over time. Long hours, ineffective management practices and unspoken norms all contribute to psychological harm. A mentally healthy workplace culture means evolving beyond recovery-focused supports to preventative everyday well-being practices. This requires a clear reassessment of how work is done, and how workers interact.
Irish-based employers are beginning to see results from such innovations. A recent Irish Times article noted that organisations prioritising wellbeing report improved retention, stronger performance and a more resilient workforce. One evidence-based approach to support this shift is the Psychosocial Safety Climate (PSC) framework, which helps organisations identify and address the root causes of stress and burnout before harm occurs.
Workers expect more and will vote with their feet
Workplace well-being is a rising priority in recruitment and retention. Recruit Ireland predicts that employee well-being will define workplace trends in 2025, especially among younger workers. Millennials and Gen Z now form the workforce majority, and explicitly expect psychologically safe, supportive work environments.
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Remember these workers are more likely to leave jobs that undervalue mental health. While older workers also experience workplace stress and burnout, they are generally less likely to speak up about it. Consequently, organisations investing in well-being are more likely to attract talent, reduce turnover, and build high-performing teams. In today’s competitive labour market, well-being isn’t a bonus, it’s a business strategy.
Global standards are rising
The recognition of mental health as a workplace safety issue is gaining momentum globally. The ISO 45003 standard, launched in 2021, provides clear guidance for managing psychosocial risks. The EU’s Framework Directive on Health and Safety at Work 2021-2027 identifies psychosocial risk as a strategic priority, with countries such as France, Sweden and Belgium leading the way.
While specific legislation has yet to be enacted here, existing laws and statutory codes already obligate Irish employers to protect employee mental health. The Healthy Ireland at Work National Framework 2021 – 2025 reinforces that safeguarding psychological well-being is central to future workplace safety.
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Given these strategic developments at global, European and national levels, it is increasingly reasonable to anticipate that specific Irish legislation to monitor and protect against workplace psychosocial risks is on the horizon. Forward-thinking employers recognise that supporting mental health is both a sustainable investment and a strategic imperative, which soon could be a legal one too.
To genuinely support employee wellbeing, organisations must go beyond surface-level perks and address the work conditions that cause harm. A healthier, more resilient workplace doesn't happen by accident, but happens by design. This means:
- Equipping managers to identify and manage psychosocial risks, which are key to shaping daily work experiences.
- Redesigning work structures based on good work design principles, to remove avoidable stressors.
- Establishing safe channels for feedback, so risks are identified early and addressed. EU-OSHA provides a practical checklist for effective worker participation to support this.
- Embedding prevention into policy and culture, following WHO recommendations, rather than expecting workers to adapt to harmful work environments.
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Siobhán Kennedy is a PhD researcher in the Department of Work & Employment Studies at the Kemmy Business School at University of Limerick. Prof Deirdre O'Shea is Professor of Work and Organisational Psychology in the Department of Work & Employment Studies at the Kemmy Business School at University of Limerick. She is a former Research Ireland awardee. Prof Noreen Heraty is Head of the Department of Work & Employment Studies at the Kemmy Business School at University of Limerick.
The views expressed here are those of the author and do not represent or reflect the views of RTÉ
