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Why mental health is foundational to skills development

Nichola Hay MBE, director of apprenticeship strategy and policy at BPP, discusses the critical role of mental health in building a resilient, future-ready workforce.

Why mental health is foundational to skills development
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For many years, mental health support sat within the category of workplace ‘nice to haves’, an option rather than a necessity. Today, in a highly competitive labour market, organisations recognise that supporting employee wellbeing is essential to attract and retain talent. However, the conversation often stops at attraction and retention.

In reality, mental health is also a critical driver of how people build skills, perform, and succeed at work.

Mental wellbeing underpins so many processes in the workplace, from learning and adaptability to creativity and innovation. When employees feel supported, they are more likely to engage with new challenges, feel empowered to advance their skills and training, and contribute ideas.

The impact of a lack of wellbeing

Research shows 75% of employees in high-wellbeing organisations feel able to innovate, compared to just 33% in those that don’t.

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Despite this, many businesses have yet to embed mental health into their day-to-day operational strategy. A benchmark study of the UK’s 100 largest listed companies found 60% failed to ensure operational management of mental health, and fewer than half of CEOs demonstrated leadership on the issue.

At a time when employers face persistent skills shortages and rapid change, this gap matters more than ever. If organisations want to build a resilient, future-ready workforce, mental wellbeing must be recognised not only as a people priority but as the foundation for skills development.

The relationship between mental health and new skills

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Flexible working pathways, structured development programmes and clear opportunities to reskill or progress can significantly reduce the anxiety that many employees feel about their future at work.

Undertaking new learning can also strengthen mental wellbeing and confidence. Recent research revealed 75% of respondents described improvements in confidence, identity or self-belief because of learning new skills, helping them better manage stress and uncertainty.

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Young people

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Mental health support in the workplace can be especially crucial in career development for younger employees. Without the right support, mental health challenges can act as a barrier to entering the workforce and contribute to the rising numbers of young people who are not in education, employment or training (NEET).

In 2025, 946,000 people aged 16–24 were NEET, with mental health conditions and disability highlighted as key obstacles to participation in the workforce.

Research also shows that three in five young people report feeling anxious at work, and two in five say anxiety directly affects their ability to find work.

Many organisations in the business and professional services sector are helping address this challenge through structured apprenticeship pathways. Business Administration and Law Subject Sector Area accounted for around 31.8% of all apprenticeship starts in 2024/25, the largest share of any sector. This figure reflects a broad sector grouping including business administration, legal assistant and paralegal apprenticeships which equip learners with job-ready skills and support progression into employment across business and legal services. 

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For many young people, apprenticeship schemes can provide structure, support and mentorship as they develop their career. Indeed, 18-24-year-olds are most likely to say that interventions such as reasonable adjustments, mental health training and supportive line managers help alleviate stress and prevent burnout.

How mental health in the workplace is changing

Where well-being programmes were once ad hoc, companies are increasingly turning to structured and data-led approaches, using workforce insights to identify pressure points, training line managers to recognise early signs of struggle and creating clearer pathways for employees to access support. 

Companies are also crucially embedding wellbeing into their workforce and people development by including health strategies, focusing on both physical and mental health.

Coaching, career guidance, development conversations and wellbeing check-ins keep employees on track professionally and personally. Their impact is strengthened when wellbeing is embedded into workforce and people strategies through clear, joined-up health initiatives.

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Final thoughts

Organisations that connect mental health support with their broader workforce planning strategies will have a clear advantage. Integrating wellbeing into their recruitment process and career pathways ensures employees are supported not only to perform in today’s roles, but also to adapt and grow in a rapidly changing landscape.  

Companies that embed wellbeing into the fabric of how they recruit and develop talent will be better placed to build future-ready workforces and thrive in an ever-changing and competitive talent market.

Nichola Hay MBE is director of apprenticeship strategy and policy at BPP