UK Retail Banks Confront Rising Mental Health Challenges in Workforces

LONDON, March 10, 2025 /PRNewswire/ -- UK retail banking operations are facing a growing mental health challenge among frontline staff, driven by evolving role demands, rising customer aggression, and the complexities of hybrid work, according to new insights from Auriemma Group. Benchmarking data reveals a steady rise in mental health-related absences over the past year, prompting banks to rethink their workforce support strategies.

The data paints a clear trend: as self-service tools handle simpler queries, frontline agents are left to manage more complex and emotionally charged customer interactions. Since the pandemic, mental health absences have climbed, reflecting the increasing strain on employees.

Firms also report a notable increase in customer aggression, including threats and verbal abuse, further exacerbating stress levels. Hybrid work arrangements compound the issue, as remote teams navigate difficult conversations with less immediate peer or managerial support after tough calls, underscoring the need for fresh approaches.

"Banks are navigating a real shift in workforce dynamics," says Nicole Toussaint, Senior Manager of Industry Roundtables at Auriemma Group. "Rising stress from customer interactions and hybrid work adjustments are challenging, but the industry is already exploring smart, proactive solutions."

Industry Approaches to Address the Challenge

Auriemma Roundtable members have shared a variety of promising practices they are testing to support their teams and maintain performance:

• Enhanced Manager Training: Firms are training managers to handle well-being discussions more effectively, with one program linking mental health support to improved performance. This fosters a supportive culture and helps staff access resources.
  
  
• Flexible Workweek Trials: A four-day workweek pilot has shown promising results, reducing absences and lifting productivity, offering a balanced way to ease stress while maintaining service levels.
  
  
• Onsite Welfare Support: For high-pressure roles, such as those handling vulnerable customers, some banks mandate onsite days to ensure direct and immediate welfare support, stabilising absence rates.
  
  
• Cultural Reinforcement: Transparency boosts engagement—one firm uses town halls to share progress and purpose, while another limits agents to first-name interactions to reduce online harassment risks.
  
  
• Supportive Policy Adjustments: Policy changes include expanded sick leave (one bank raised it to 25 days for severe cases) and teamwide transparency on absences, reinforcing personal accountability.
  
  
• Tech-Enabled Resilience: AI-driven tools and speech analytics are being used to identify early burnout risks in complaint calls, suggest responses to lighten agents' loads, and blend efficiency with care.

"Roundtable members are eager to help one another tackle this challenge at an industry level," says Toussaint. "This topic will remain a focal point, especially as firms optimise their hybrid working strategies ahead of the 2026 Employment Rights Bill. Our goal is to support banks in building stronger, healthier teams."

Auriemma Group invites banking and issuing leaders to explore these trends and solutions at the upcoming Customer Service and Complaints Roundtables in March and July 2025. To attend as our guests, please contact us via roundtables@auriemma.group.

About Auriemma Group

For over 40 years, Auriemma's mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, visit us at www.auriemma.group or contact Nicole Toussaint at nicole.toussaint@auriemma.group.