We’ve known for some time the scale of the youth mental health crisis is likely to increase. What has become fundamentally clear – and why this is an employer issue – is that this issue affects not only young people in the workplace, but also parents whose children are suffering.

In the latest warning, several mental health organisations and leading experts have stated that the scale of the crisis now urgently needs addressing. Both governmental policymakers and employers must take this as a wake-up call.

The Centre for Mental Health, Centre for Young Lives, the Children and Young People’s Mental Health Coalition and YoungMinds, along with the Prudence Trust, released figures showing the extent of the issue. These figures indicate that the crisis is creating an annual £24bn cost to employers in lost productivity as well as £1trillion in lost earnings over a lifetime.

Latest statistics also show a significant increase over the last decade in the number of employees aged between 16-34 who say poor mental health limits their ability to do their job.

Indeed, mental health conditions are now one of the leading causes of long-term absence from work, particularly among young adults.

A now and future workplace issue

The impact of this on employers and HR cannot be underestimated. It’s not just a ‘now’ issue, either – it’s a growing future one. With children and young people struggling today there will be a huge demographic of employees in the workforce with existing mental health struggles.

The issue is multi-faceted. HR professionals will need to consider existing employees who are struggling, employees whose children have mental health problems, and those affected in the next generation too.

The youth mental health crisis and ‘over medicalisation’

So what’s behind this rise in mental health issues among children and young people? Is it because the reduction in mental health stigma has led to more awareness of the signs? Has this encouraged more individuals to talk about it openly and then actively seek help? Or is it because more people are struggling with poor mental health than they had previously?

One thing is absolutely clear: the increase in mental health issues among children and young people is not – as has been suggested – due to ‘over-medicalisation’. 

Mental health conditions such as anxiety, depression and trauma are not fleeting phases or the result of over-diagnosis – they are genuine, complex challenges affecting one in five children and young people.

Increased pressure and uncertainty can feel like quicksand

There’s intense pressure on the younger generation. For example, social media and the rise of AI-generated imagery has led to increased anxiety from unhealthy comparisons and pressure to have ‘photo perfect’ lifestyles.

The business world is changing too. There’s so much uncertainty and instability these days, not just economically (young people have little security over their financial futures) but in working environments too.

Employers themselves are uncertain if they want employees back in the office, working from home or a hybrid of the two. Any stability we had in the past seems more like quicksand for younger people.

And let’s not forget that young people entering our workforce now are also the people who, during their most crucial development stages, found themselves socially isolated and excluded due to the pandemic.

Change the thinking

Employers therefore need to change their approach to supporting this unique cohort. Not least to find and build organisational acceptance of the new reality.

As increasing numbers of young adults with mental health challenges enter the workforce, we can anticipate both challenges and opportunities.

Challenges may arise as some individuals experience difficulties managing stress, burnout, and maintaining work-life balance. In turn, this could impact productivity, absenteeism, and staff retention.

However, these changes also present opportunities to drive progress. Organisations can foster a more inclusive and supportive workplace culture that prioritises mental health and wellbeing.

The pertinent question then is: what can HR and employers do to support young employees – and their leaders of the future – who are experiencing mental health issues?

How can HR address the youth mental health crisis?

Every organisation, large or small, has a crucial role in supporting young people entering the workforce, particularly those facing mental health challenges.

Prioritising this support is not just an ethical responsibility but a business imperative. Younger employees are the future of the workforce. They bring fresh perspectives, innovation, and adaptability. However, adequate support systems — such as mental health resources, mentoring programmes, and flexible working arrangements — are essential. Without these, organisations risk higher turnover, reduced productivity, and increased absenteeism. 

Organisations must actively create inclusive environments that promote psychological safety, foster open communication, and ensure access to mental health services. 

Guidance for HR in smaller businesses

For smaller businesses with limited resources, simple steps such as offering mental health awareness training, building peer-support networks, or partnering with external mental health services can make a significant difference.

By investing in these initiatives, companies enhance employee wellbeing AND build a resilient, engaged, and productive workforce.

Focus on support and prevention

One element rings true no matter how many times it’s stated: prevention is always better than cure. Prevention can minimise or reduce potential issues. With this in mind, implement a mix of proactive measures that focus on prevention and wellbeing. Consider providing mental health training for managers, offering flexible working arrangements and wellness days, and creating peer support programmes.

HR can also work on fostering a culture of openness where discussing mental health – whether it’s their own or a loved one’s – is normalised. This helps create a culture where employees feel safe discussing mental health without judgement or consequences.

Prioritise proactivity

Put the essentials in place, such as employee assistance programmes (EAPs) and access to crisis-led interventions and counselling services to support individuals or carers. Ensure the services procured are relevant to the needs of your workforce. Consider, in particular, younger employees or carers who may need support.

A huge part of this is about gathering feedback via regular surveys and discussions to understand your workforce’s needs, concerns and challenges. Policies and measures can then be adapted to provide targeted age-relevant support.

Normalise ‘switching off’

Managers can foster a healthy work-life balance by encouraging their teams to disconnect outside of working hours. A policy that’s top-driven in this way will feed down to employees and become normalised.

It might be the first time a young person realises it’s OK not to be permanently available and that they can disconnect after work. Make sure your newly employed ‘digital natives’ know it’s OK to switch off.  

This is a societal issue too 

It’s not just employers that need to take action. Evidence consistently shows that early intervention in mental health significantly reduces the severity and duration of mental health conditions.

Indeed, according to the Centre for Mental Health, every £1 invested in early intervention programmes can save the public sector up to £15 in future costs, including healthcare, welfare, and lost productivity.

We can prevent more serious mental health issues from developing later in life by expanding access to school-based mental health services and integrating mental health professionals into educational settings. Doing so will help reduce the long-term demand for disability benefits.

Additionally, for many young adults, the transition from child to adult mental health services can be disjointed, leading to gaps in care. The UK Government needs to bridge this gap by investing in community-based services that support individuals as they move into adulthood. 

Integrated care models, which combine mental health support with social services and employment assistance, have shown promising results in reducing dependency on incapacity benefits. These services should be easily accessible, reducing waiting times and ensuring individuals receive timely help before their condition worsens.

Redefine workplace norms

Employers must seriously consider their role in addressing the youth mental health crisis. If we want to create healthier, more balanced professional environments for future generations, we must act now.

Ultimately, this is a chance for society to redefine workplace norms.