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Connection lost: the cost of working apart – an employer’s guide to hybrid working and mental health

16 July 2026

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Hybrid Working

Workplace culture has come a very long way since 2002. For those of us who remember turn-of-the-century offices, it was suits and ties with paper printouts, it was pre-smartphone, pre-broadband, pre-video call, and it was even before workplace smoking was banned. For many modern workers, those are offices that would be completely unrecognisable.

But it was also 2002 when, as a legal framework, flexible working was first introduced. For the first time, eligible employees were allowed to request changes to hours, times, and location of work. In 2014, that right was widened to all employees with the required service, which made flexible arrangements much more mainstream – in principle.

Hybrid working as we know it today wasn’t actually adopted at scale until 2020, after the first COVID lockdowns forced mass homeworking. What began in 2002 as a policy to, among other things, improve the mental health of workers by giving them greater flexibility – has generated an array of unexpected outcomes as the reality of hybrid working played out in less than ideal circumstances.

Today, it remains a divisive topic:

  • Owners ask “why am I paying high lease rates for half-empty offices?”
  • Leaders ask “how can I effectively manage, train, and oversee workers who I barely see in-person?”
  • Workers ask “why do I need to be in the office when COVID proved we can do our jobs from home?”

There are good reasons for these contentions. 89% of respondents to our Future Workspaces survey say they have access to hybrid or flexible working, and 93% say that wellbeing benefits have increased over the past three years. 77% also prioritise work-life balance above almost everything else. On paper, the modern workplace has never been more attuned to the needs of its people.

But satisfaction with coworker interactions is falling year-on-year – from 36% to 29%.

82% say they value a sense of community at work, yet fewer report finding it. And when asked what single benefit they would most like to improve, the top answer – from people who already have flexible working – was more flexible working.

This article explores what’s gone wrong, who’s responsible, and what employers can do – practically and legally – to address the mental health consequences of a working model that, for all its benefits, has introduced risks that many organisations are still not equipped to manage.

Did we care more when things were worse?

The early months of the pandemic produced, paradoxically, some of the strongest workplace cultures many organisations had ever experienced. Colleagues checked in on one another and managers made welfare calls. There was a collective understanding that things were difficult, and an unspoken agreement to look out for each other.

That solidarity has not survived the transition to business-as-usual hybrid. Speaking at our Future Workspaces Conference, David Bellamy – founder of workplace analytics platform Harkn – was direct about what has been lost: warmth, humour, and spontaneous human connection have been gradually engineered out of the working day. Virtual meetings are transactional. They’re back-to-back. The informal check-in has been replaced by a calendar invite, with a hard stop.

Deloitte’s most recent Mental Health and Employers report (2024) puts the annual cost of poor mental health to UK employers at £51 billion. Presenteeism alone accounts for roughly £24 billion of that figure. The report also found an average return of £4.70 for every £1 invested in workplace mental health initiatives.

 

Maris Hanson, Group Chief Legal and People Officer at Giant Group, described a related consequence. In a hybrid environment, a mistake can come to define a person – because the informal interactions that would normally provide context, nuance, and the opportunity to recover are no longer there. The corridor conversation, the shared lunch, the quiet word after a difficult meeting – these are moments that served as connective tissue. Without them, professional relationships became more brittle, and the margin for error narrowed.

In an office environment, you naturally observe. You notice when someone’s demeanour changes, when their energy drops, when they’re ready for a new challenge. On a screen, those signals are much harder to detect.

LEGAL INSIGHT: Duty of Care


“Section 2 of the Health and Safety at Work Act 1974 requires employers to ensure, so far as is reasonably practicable, the health, safety and welfare of all employees – including mental health, and including those working from home.


What shifts in a hybrid model is not the duty, but what ‘reasonably practicable’ looks like. The informal signals that once surfaced a concern are largely absent. So the obligation moves from passive observation to active systems: structured check-ins, trained managers, embedded policy. Employers who assume that reduced physical control means reduced legal exposure are making a mistake. A tribunal will ask not whether you controlled the environment, but whether you took reasonable steps to identify foreseeable risks.”


Rachel Roberts, Partner and Head of Employment

 

Open doors don’t mean open minds

There is a tempting narrative that mental health in the workplace has been destigmatised.

It’s true that awareness campaigns are widespread, that Mental Health First Aiders are commonplace, and that wellbeing is a standing item on many boardroom agendas. But awareness and action are not the same thing. David Bellamy shared an observation at our conference that should give every employer pause: employees will not talk to their employers about their mental health until they are in crisis.

CIPD research found that just 44% of employees would feel confident disclosing unmanageable stress or mental health problems to their employer – a figure that has barely moved from 41% five years earlier.

 

In David’s business, Harkn, data collected on employee sentiment revealed identifiable patterns that could predict – six weeks in advance – when an individual would reach out for help.

But disclosure is also only half of the problem. Most organisations, David said, are still not addressing something more fundamental – providing employees with the space and freedom to talk openly about the personal side of their work. Many workplaces have lost the conditions in which honest conversation can happen at all. Policies may invite openness, but the architecture of the modern working day – back-to-back calls, transactional meetings, no margin for the unscripted – has closed the open doors that used to be there.

LEGAL INSIGHT: Reasonable Adjustment


“Many employers point to their EAP, their Mental Health First Aiders, and their wellbeing policy as evidence of compliance. But providing a resource is not the same as discharging a duty of care. If only 44% of employees feel confident disclosing a mental health issue, the system is not working – and the employer cannot claim ignorance of problems it has made structurally difficult to report.


Under the Equality Act 2010, the duty to make reasonable adjustments arises not only when a condition is disclosed, but when the employer ought reasonably to have known. A wellbeing strategy that relies entirely on employees coming forward – while the data shows most will not – is a strategy with a gap at its centre. Tribunals will look at whether your systems were genuinely designed to surface concerns, not just receive them.”


Katherine De Saulles, Senior Associate, Employment, HR and Immigration

 

A generation that can’t go home

Much of the discourse around hybrid working assumes that working from home is universally available. It isn’t – and the gap disproportionately affects the people who can least afford it.

Nyssa Higgins, Head of HR at Fasthosts, raised a point at our conference that is often overlooked in policy discussions. 60% of her younger call centre workers are unable to work from home effectively on a daily basis. House shares, student accommodation, and overcrowded households are not conducive to focused professional work. For these employees – typically younger, more junior, and earlier in their careers – the “flexibility” of hybrid working is a benefit they cannot fully access.

Maris Hanson made the case that organic learning – like overhearing a colleague handle an objection, watching someone navigate a difficult conversation, absorbing the behaviours and rhythms of experienced professionals – simply does not happen on video calls. These informal learning moments, which previous generations took for granted, are severed in remote-first environments.

Six in ten Gen Z (58%) say they need to spend time with colleagues face-to-face to carry out their work effectively. Half (50%) of Gen Z working from home said doing so had put undue pressure on their health and wellbeing.

 

Junior employees who cannot work from home effectively are therefore also the ones who most need to be physically present alongside others to develop. They miss out on social capital, informal mentoring, and cultural absorption. And when professional development stalls, the mental health consequences – frustration, isolation, a sense of being left behind – tend to follow.

LEGAL INSIGHT: Accessibility


“Employers should not assume that a hybrid working policy is neutral simply because it applies to everyone. Decisions about home working, office attendance and access to training must be assessed through the lens of the Equality Act 2010, particularly the risk of indirect age discrimination where younger or more junior staff are placed at a disadvantage.


Since April 2024, employees also have a day-one statutory right to request flexible working, and employers must deal with those requests reasonably and in line with the Acas Code. The safest approach is to document the business rationale for hybrid arrangements, assess their impact on different groups, and ensure junior employees are not denied supervision, mentoring or career development because of the way flexibility is structured.”


Peter Orton, Legal Director, Employment, HR and Immigration

 

The question of responsibility

When our conference panellists were asked who bears responsibility for employee mental health – HR, management, or the individual – the responses were instructive.

Nyssa Higgins was direct. Too many line managers assume that mental health is an HR function. It isn’t. HR can provide frameworks, tools, and policies – but it is not HR who sits alongside employees day to day. Line managers are best placed to notice changes, ask meaningful questions, and intervene early. But they need the training and confidence to do so. Not simply asking “are you okay?” – which invites a reflexive “I’m fine” – but having the skill to say “I’ve noticed something has changed. Can we talk about it?”

Maris Hanson directed attention upwards. Senior leadership teams are responsible for setting the tone and for ensuring that messaging around wellbeing is consistent and credible. If the executive team says mental health matters but then schedules wall-to-wall meetings without breaks, it’s a very hollow message.
David Bellamy framed it in structural terms. Leadership is responsible for the conditions in which people work. Burnout does not happen in a vacuum – it happens in professional environments where the conditions permit it. And those conditions are determined from the top.

But in an era where leaders are encouraged to be vulnerable and open about their own struggles, there is a point at which this can undermine rather than build confidence. Not every leader is well-served by sharing their personal mental health journey publicly – and employees don’t always respond to vulnerability with trust. Sometimes what people need from leadership is not performed empathy, but demonstrated stability.

LEGAL INSIGHT: Employer Responsibilities


“The legal duty is not to guarantee good mental health, but employers must take reasonable steps to prevent foreseeable harm. Mental health conditions may amount to disabilities under the Equality Act 2010, triggering the duty to make reasonable adjustments where the employer knows, or ought reasonably to know, of the disadvantage. Separately, under health and safety law, employers must assess and manage workplace stress risks so far as reasonably practicable.


The line between legal and moral responsibility is therefore crossed when warning signs, workload pressures or disability-related needs are known but not properly acted upon. ‘Reasonable’ is context-specific: a national employer will usually be expected to evidence more resource, management capacity and alternative working options than an SME. Recent hybrid-working cases show tribunals will scrutinise whether home working, adjusted attendance or workload changes were genuinely considered, rather than rejected by reference to policy alone.”


Omer Simjee, Partner and Joint Head of Immigration

 

A broken contract

Beneath the practical challenges of hybrid working lies something more fundamental – a deterioration in the relationship between employer and employee – that predates the pandemic, but has been accelerated by it.

The social contract that once governed work was relatively simple:

Attend > perform > be loyal > progress.

There was an implicit bargain, commitment in exchange for a career. For most workers today, it’s a bargain that no longer holds. Career paths are far from guaranteed and restructures are increasingly routine. Redundancy programmes are framed as efficiency exercises. Employers have demonstrated, repeatedly, that headcount is a variable to be managed – rather than a relationship to be honoured.

David Bellamy articulated the consequence of this at our conference with a question that deserves serious consideration: if an employer is willing to make your role redundant next quarter, why would you commute two hours to sit in their office today?

When companies sold off their sports clubs, closed their subsidised canteens, stripped away the social infrastructure that once made the workplace a community – they may not have intended to send a message, but they did. And now, as organisations struggle to bring people back with the enthusiasm and commitment they once had, the reasons for resistance aren’t complex.

Job insecurity negatively impacts the mental health of two-thirds (66%) of UK workers, according to the Business in the Community Seizing Momentum report. Out of 4,000 workers surveyed, three-fifths reported losing sleep and experiencing stress, lack of concentration, and fatigue because of financial concerns.

 

This is relevant to mental health because the perception of job security – or the lack of it – is one of the strongest predictors of workplace stress. When employees feel disposable, their engagement declines, their anxiety increases, and their willingness to invest emotionally in their work diminishes.

LEGAL INSIGHT: Insecurity and Stress


“The law does not require employers to provide permanent job security, but it does require them to manage insecurity lawfully and responsibly. Where restructures or redundancies are proposed, employers must consult meaningfully, follow fair selection processes and, in collective redundancy situations, comply with statutory consultation obligations. Poor handling is not just an engagement issue; it can create unfair dismissal, protective award and breach of trust and confidence risks.


Employers should also remember that persistent uncertainty, excessive workload, or badly managed change can become a health and safety issue where work-related stress is foreseeable. The moral obligation may be to rebuild trust; the legal obligation is to avoid acting in a way that destroys it. The larger and better resourced the employer, the more robust the evidence, consultation, communication and support expected to justify decisions affecting job security.”


Catherine Mitchell, Partner, Employment, HR and Immigration

 

Should Big Brother be watching?

A question from the floor at our conference cut to the heart of something underlying most of these matters:

“How do we monitor productivity at home without being Orwellian?”

It is a tough question. Employers have a reasonable interest in understanding whether work is being done effectively, and the loss of physical visibility in hybrid models creates an information gap that can be uncomfortable – particularly for organisations without strong cultures of trust.

65% of workers believe that the introduction of a new type of surveillance would have a damaging impact on their relationship with their employer.


56% of tracked workers report high-stress levels, compared to just 40% of those who aren’t monitored.


43% of monitored workers feel surveillance is a violation of trust.

 

Maris Hanson’s view was that trust must be the starting point. People do not, by default, want to do the wrong thing. If an organisation builds trust, encourages openness, and creates a culture where mistakes can be acknowledged without fear – the need for surveillance diminishes. But this requires clear expectations from leadership about what is expected and how flexibility is to be used.

For organisations where that culture does not yet exist, the temptation to fill the gap with technology – keystroke logging, screen monitoring, activity tracking – is real. But the evidence suggests that surveillance tools do more harm than good to the very thing they are trying to protect: productivity. Employees who feel monitored tend to report higher levels of anxiety, lower levels of trust, and reduced engagement. The tool designed to ensure performance may be the thing that undermines it.

LEGAL INSIGHT: Monitoring and Privacy


“Employee monitoring is not unlawful in itself, but under the UK GDPR and Data Protection Act 2018 it must be justified, transparent and proportionate. Keystroke logging, screen capture and productivity tracking are particularly intrusive, especially where the worker is at home and Article 8 privacy expectations are engaged. Employers should identify a lawful basis, carry out a data protection impact assessment where monitoring is high risk, tell staff clearly what is being monitored and why, and avoid covert monitoring except in exceptional cases such as suspected serious wrongdoing.


‘Proportionate’ means using the least intrusive method capable of achieving a legitimate aim: monitoring outputs, deadlines and service levels will usually be easier to justify than constant surveillance of activity. The ICO’s worker-monitoring guidance, and its 2024 Serco enforcement action on biometric attendance monitoring, show that convenience or managerial anxiety will not be enough.”


Georgia Shriane, Legal Director, Commercial

 

How to move forward

Design connection into the model, rather than mandating presence.

Requiring full-time office attendance is unlikely to succeed and may provoke exactly the disengagement it seeks to prevent. Instead, identify the activities that are genuinely enhanced by physical proximity – onboarding, mentoring, collaborative problem-solving, team-building – and structure your hybrid model around those moments. Allow everything else to flex. The objective is not to fill desks, but to create reasons for people to come together that feel purposeful rather than performative.

Move from reactive wellbeing to proactive intervention.

If your organisation is only addressing mental health when an employee reaches crisis point, you are – based on the evidence – six weeks too late. Invest in the structures, both cultural and technological, that allow early identification of declining wellbeing. Train line managers to have meaningful conversations, rather than scripted check-ins. And audit whether your existing wellbeing benefits are actually being used. Low uptake isn’t evidence that your people are fine – but it could be evidence that the offering isn’t working.

Address the generational divide explicitly.

Recognise that hybrid working does not affect all employees equally. Younger and more junior workers are disproportionately disadvantaged – both in their ability to work from home and in their access to the informal learning and social capital that offices provide. Consider how your model supports early-career employees specifically, and whether you are inadvertently creating a two-tier workforce in which those with the least experience receive the least support.

Rebuild the social contract.

If you want employees to invest emotionally in their work – to be present, engaged, and resilient – you need to demonstrate that the investment is reciprocal. This means being honest about job security, transparent about organisational change, and consistent in the value you place on your people. Words alone are not sufficient. The organisations that will attract and retain the best talent will be those where employees believe, based on evidence and experience, that they matter.

Get the legal foundations in place.

Your duty of care as an employer doesn’t stop at the office threshold. If your employees are working from home – from co-working spaces, or from any other location – your obligations follow them. Review your policies, understand the current legal landscape, and seek advice that is specific to your size, sector, and operating model. The regulatory environment around flexible working, employee monitoring, and workplace wellbeing is a live, evolving movement that you have to keep up with.

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