Almost half (47%) of Europeans work in a psychologically unhealthy environment, a new survey suggests, with a corresponding impact on performance, employee satisfaction and retention.
The past few years have presented significant challenges for both employers and employees across Europe, with the pandemic and cost-of-living crisis taking a toll on mental health. In response, many organisations have prioritised creating psychologically healthy workplaces, recognising the important role they play in supporting employee wellbeing.
The European Workforce Study, carried out by Great Place To Work, quizzed 24,938 employees across 19 countries, including the UK. However, despite increased attention and investment, the survey suggests that many companies are still missing the mark when it comes to creating environments that promote sustained psychological health.
Across Europe as a whole, only half (53%) of employees report working in psychologically healthy environments. Norway, Denmark, and the Netherlands lead the way in workplace psychological health, outperforming the lowest-ranked countries - Greece, Luxembourg, Poland and Italy - by over 20 percentage points. The UK falls slightly below average at 52%.
According to the report, the key drivers of psychological health are:
- Management showing interest in employees as people
- Management being genuinely open to suggestions and ideas
- Management involving staff in decisions affecting their work
- Work-life balance being actively encouraged
- Employees being paid fairly
- Employees feeling free to be themselves
- Employees being made to feel welcome when they join
Prioritising these factors can have a transformative impact, improving overall employee satisfaction as well as boosting retention. According to the report, employees working at psychologically healthy organisations are six times more likely to want to stay and five times more likely to be strong advocates for their employer.
Of the industries analysed, 48% of public sector employees and 55% of private sector employees reported that they worked in a psychologically and emotionally healthy place. Government and public sector organisations rank lowest for psychological health, presumably due to their reputation for overwhelming workloads, resource constraints, and the emotional toll of managing complex social issues.
Other industries reporting low levels of psychological health include healthcare (47%), transport and logistics (50%), and retail (51%). At the other end of the spectrum, the technology sector (62%), real estate and development (57%), and professional services (57%) all reported higher results.
Perceptions of psychological health within an organisation also improve significantly with seniority. When asked whether their workplace was psychologically healthy, two-thirds (67%) of senior leaders agreed. However, this declined significantly when asked of mid-level managers (57%), frontline managers and supervisors (51%), and non-managers (51%).
These discrepancies highlight the need for leaders to engage in open dialogue across all levels of the organisation to create a deeper understanding of the workplace experience. By bridging these perception gaps, organisations can create a more inclusive and supportive environment for all employees.
“The psychological health of an organisation refers to whether the intangible work environment - all the bits you cannot see - provides a conducive foundation for high-performing, thriving employees," said Sara Silvonen, Senior Consultant & Wellbeing Lead, Great Place To Work UK. "It encompasses a wide range of psychosocial factors such as transparency, empowerment, managerial values, support and relationships.”
