According to NHS, employers are losing millions of pounds in lost productivity, because of stress, depression and mental health problems in the workplace.

The National Institute for Health and Clinical Excellence (NICE) says encouraging a culture of long hours results in 'presenteeism' i. e. where workers feel compelled to ensure their presence at work, even though they may prove unproductive, is only serving to damage small businesses, including the wider economy.

The NHS analysis suggests, a business with 1,000 employees could incur an annual cost of £835,355 due to mental ill-health, however, it could save up to £250,000 a year simply by ensuring a reduction in absenteeism and an increase in performance.

Providing an online calculator, NICE as part of guidance on mental health and wellbeing in the workplace, helps employers realise the savings that can be made by improving line management and working conditions. The goal is to reduce the loss of an estimated 13.7-million working days due to work-related mental health conditions like stress, depression and anxiety, and which at current pay levels are estimated to cost employers over £28-billion a year.

The NICE guidelines are mandatory for the NHS, which happens to be the largest single employer in Britain with a staff of 1.5-million staff, however, they would also apply to all other business sectors.

At some point in time, 1 in 6 suffer from mental health problems, which means the adoption of measures like allowing such people to work part-time or from their homes, would benefit even the small businesses.

According to the report's recommendations, it is important for employers to pay more attention to stress and anxiety levels in the workplace, giving constructive feedback, including praise and criticism when necessary, which can help improve the mental health of their employees. Positive feedback, flexible working and giving extra days off in reward for hard work is also helpful in reducing unproductivity.

Since, bad managers are the single biggest cause of problems, NICE urges employers to invest in training for managers and mentoring for staff to help career development.