The Business Case for a Caring Workplace

Law firms win when they make mental wellbeing a priority

In the UK, it’s understood that workplaces have a responsibility to protect the physical safety of their employees. Regulations like the Health and Safety at Work Act 1974 and guidance from the Health and Safety Executive (HSE) provide a clear mandate for employers to keep employees safe. These include requirements for managing stress, yet despite a growing awareness of the importance of psychological wellbeing, mental health safeguards often remain challenging to embed into a culture – especially in high-pressure professions like law.

Why mental wellbeing matters in law firms

This oversight isn’t just a matter of ethics or compliance; it’s also a business risk. In law firms specifically, failing to address mental health can lead to costly outcomes. Conversely, taking proactive steps to protect mental wellbeing in the legal profession can deliver competitive, financial and reputational advantages.

“Firms have the opportunity now, not tomorrow or sometime in the future, to make real changes,” said Lucinda Soon, a qualified solicitor and organisational psychologist who recently spoke at the Travelers “On Risk” event. “We have tolerated the problems for too long. Whether you call them psychosocial risks or people-related risks, these risks continue to be neglected and unmanaged in many firms, despite the negative impacts they can have on performance and client service.”

The legal sector v other industries

In professions where safety is paramount – aviation, for example – there’s a built-in understanding that rest and recovery are critical. Pilots run through a self-assessment called “IMSAFE” (illness, medication, stress, alcohol consumption, fatigue and emotion) to ensure they are fit to fly.¹ Across transportation and manufacturing, there are enforced limits on working hours to reduce the risk of fatigue-related errors.

Contrast that with the legal sector. Lawyers are often expected to manage immense workloads, meet tight deadlines, and work long hours with little consideration for rest – let alone recovery. The reality is that many firms still operate under the legacy of the partner-led hierarchical model: a system that focuses on profit per equity partner (PEP) and prizes billable hours above sustainability and wellbeing. These metrics can encourage overwork and treat exhaustion as a badge of honour rather than a warning sign.

“When organisations compromise on mental health, there can be severe consequences for employees,” said Philippa Wilson, Senior Risk Management Consultant at Travelers Europe. “Yet it’s common for organisations to push the limits of a person’s mental health in ways they would not test their physical health. At Travelers, we see mental health risks play out in our insureds’ legal claims.”

The business risks of poor mental health
The imbalance between expectations and capacity is especially pronounced in the legal profession. Client demands and complex caseloads can crowd out time for wellbeing. While many firms now offer benefits like mindfulness apps or employee assistance programmes, these solutions are often cosmetic if deeper structural issues persist – like toxic management practices or the expectation of 24/7 availability. Failure to set appropriate boundaries or take personal responsibility for one’s own wellbeing are also key factors which contribute to stress and burnout in the workplace.

Part of the problem lies in measurement. Physical risks are routinely assessed and managed, but firms may avoid exploring mental health risks. Tools do exist to evaluate psychological safety – for example, the HSE Management Standards approach to work-related stress provides a clear, evidence-based way to assess risk.² Ignoring these tools not only leaves firms exposed but also robs them of an opportunity to strengthen business performance.

“A mentally healthy workforce is a more effective one,” said Elizabeth Rimmer, chief executive at LawCare, a partner of Travelers. “We know at LawCare that too many in the legal profession experience mental health struggles in silence, fearing judgment or repercussions if they speak up. When more people share their stories, it normalises the conversation, reduces stigma, and encourages others to seek the help they need.”³

The cost of inaction

Poor mental health in the workplace isn’t just a wellbeing issue – it’s a performance issue that impacts a firm’s bottom line. According to WONE 2025 - Risky Business: The Hidden Cost of Stress, employees under high stress are:

• 8 times more likely to take sick leave
• 11 times more likely to make errors
• 4 times more likely to leave the organisation
• 5 times more likely to file health claims

These outcomes create direct and measurable costs. Deloitte research found that poor employee mental health costs employers £51 billion per year.⁴ Meanwhile, presenteeism, where employees are physically present but mentally unwell, can be even more costly than absenteeism. A whitepaper from the Mindful Business Charter notes that productivity losses from presenteeism often silently erode firm performance over time.⁵

Legal insurers are paying closer attention to these trends. Travelers, for example, sees four main categories of legal error reflected in claims: retainer management, drafting errors, advice failure, and dishonesty – each aligning with different forms of human mistake. The research of psychologist Dr. Jens Rasmussen, along with the HEART (Human Error Assessment and Reduction Technique) model, illustrates how factors such as heavy workloads, disrupted sleep patterns, and poor mental wellbeing directly heighten the risk of human error. These factors are reflected in claims activity for law firms.

“For some time now, we have observed a steady rise in retainer management claims involving ‘slips and lapses’ — minor errors frequently attributed to distraction, fatigue or stress,” said Paul Smith, Senior Risk Management Consultant at Travelers Europe. “Notably, retainer management and drafting errors, which are often caused by inattention, have risen in parallel with the widespread use of smartphones and increasing workplace digitalisation creating new sources of distraction. These errors were especially pronounced during the COVID lockdowns, a period when the line between personal and professional life became increasingly blurred.”

Financial and reputational upsides of wellbeing

While the costs of neglecting mental health are high, the benefits of doing it well are even higher.

Competitive advantage: In a market where clients and recruits increasingly care about an organisation’s values and commitments to Environmental, Social and Governance (ESG) goals, firms with strong wellbeing cultures can differentiate themselves. A reputation for considerate working practices attracts top talent and reinforces client trust. Increasingly, law firms are being recognised in the media for not just their earnings but for the quality of their culture. These accounts will likely impact the employment choices of up-and-coming generations of legal professionals, for whom a firm’s social credentials are becoming increasingly more relevant.

Financial returns: Data from the University of Oxford’s Wellbeing Research Centre shows a direct link between wellbeing and business performance. Firms with the highest employee wellbeing scores also show stronger stock returns and improved operational metrics.⁶

Cultural change for the better: Embedding wellbeing into a firm’s DNA through leadership, process and policy builds resilience. As regulators begin to look more closely at psychosocial risk, taking the lead now could future-proof a law practice.

A forward-thinking approach: As AI changes how law firms operate, they will likely have to rethink charging by the hour and place greater focus on the value of the innovation and strategic insight they offer. This change to the legal landscape requires high-performing talent. Firms that demonstrate a commitment to protecting employees’ mental wellbeing will be in a stronger position to retain that talent.

As relayed in The Business Case for Wellbeing & the Mindful Business Charter, “Firms that continue to depend on outdated working models will find themselves ill-equipped to navigate these changes, while those that invest in structured, evidence-based approaches to workplace wellbeing will gain a competitive advantage.”⁷

A humane workplace is a high-performing workplace

The good news is that law firms don’t need to start from scratch to improve their culture. A number of frameworks and models already exist to guide strategic action on mental health:

· ISO 45001/45003: These international standards offer comprehensive guidance on protecting occupational health and safety, including psychological health at work.⁸

· The IGLOO model: This framework helps organisations assess risks at the individual, group, leader, organisation and overarching context levels.⁹

· The Mindful Business Charter’s Business Case for Wellbeing: This whitepaper outlines how firms can make the case for wellbeing in business terms, from culture to KPIs. 

Crucially, these frameworks encourage law firms to move from reactive interventions (like crisis counselling or resilience workshops) to proactive prevention – such as ensuring workloads are manageable, deadlines realistic, and leadership accountable for team wellbeing.

“What we now need are leaders who have the courage not only to ask, ‘could the culture in our firm be contributing to poor wellbeing outcomes for our people?’ but also to make it a strategic priority to investigate this properly using appropriate risk assessment tools and intervention methods,” Soon said.

Moving from duty to opportunity

The conversation around workplace health and safety is evolving. As regulators, clients, and employees raise expectations about the need for psychological safety, the business case for a considerate workplace is no longer optional – it’s essential to a firm’s longevity.

“It is vital for leaders to understand that if you want to see a reduction in needless expenditure, fewer costly mistakes, lower turnover, and an increase in productivity and profitability you can’t just use interventions that address the symptoms of poor wellbeing,” said Charlotte Clegg, Community Engagement Executive at the Mindful Business Charter. “The change needs to be systemic and address the actual causes of harm.”

Law firms that act now to prioritise mental health won’t just reduce their risk; they’ll gain a strategic advantage. When lawyers are well, they do their best work. When firms take care of their people, their people do their utmost to help the business succeed.

This article is derived from a recent Travelers thought-leadership event, "On Risk," designed for Travelers clients, featuring quotes from the guest panel speakers

Lucinda Soon

Qualified solicitor and expert in professional ethics, and wellbeing

Charlotte Clegg

Community Engagement Executive for the Mindful Business Charter

This article is provided for general informational purposes only. It does not, and it is not intended to, provide legal, technical, or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers operates through several underwriting entities in the UK and Europe. Please consult your policy documentation or visit the websites below for full information.

travelers.co.uk                                             travelers.ie

Resources:

1.   https://pilotinstitute.com/imsafe-acronym-explained/#:~:text=Understanding%20the%20IMSAFE%20Checklist,to%20operate%20an%20aircraft%20safely
2.   https://www.hse.gov.uk/stress/standards/
3.   https://www.lawgazette.co.uk/commentary-and-opinion/another-day-another-survey-but-this-one-matters/5122574.article
4.   https://www.deloitte.com/uk/en/about/press-room/poor-mental-health-costs-uk-employers-51-billion-a-year-for-employees.html
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8.   https://www.affinityhealthatwork.com/igloo
9.   https://www.bsigroup.com/en-GB/products-and-services/standards/iso-45003-psychological-health-and-safety-at-work/#:~:text=Ideally%2C%20you%20should%20use%20ISO,when%20meeting%20ISO%2045001's%20requirements