Mental health in the workplace has become increasingly important. Once considered a more tangential aspect of employee benefits, mental health offerings are no longer seen as just nice-to-have — they’re a priority across the entire workforce.
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Interest in mental health benefits was heightened by the onset of the 2020 COVID-19 pandemic and won’t go away any time soon. According to Marsh McLennan Agency’s 2024 report on benefits trends, 61% of Gen Z employees would consider changing jobs for better mental health benefits, and 46% of all employees said mental health benefits would motivate them to apply for a job with another company.
It’s a fact: If employers want to remain competitive in today’s job market, mental health provisions should be prioritized. Not only are they beneficial to employees, but employers have seen a positive return on investment (ROI) from offering employee mental health benefits including increased productivity, improved retention rates and more.
The current landscape of mental health in the workplace
According to the U.S. Department of Health and Human Services (HSA), a survey in 2021 reflected that 76% of U.S. workers reported at least one symptom of a mental health condition and 84% of respondents expressed that workplace conditions led to at least one psychological condition.
Once the proverbial doors of workplace mental health and its impact were opened, more light has been shed on how stress and burnout are impacting the wide multigenerational workforce. The earlier mentioned Marsh McLennan Agency report reflects that 44% of all generations (baby boomers, Gen X, millennials and Gen Z) feel constant stress, rising to 68% for Gen Z and younger millennials in particular.
The prevalence of workplace stress has also unveiled how burnout affects employees. There is a clear connection between poor employee health, decreased productivity, lower engagement, absenteeism and attrition due to burnout. The Marsh McLennan Agency report demonstrates that 59% of workers reported feeling burned out in 2023, an increase of 9% since 2021.
In a survey conducted by the American Psychological Association, workers reported their primary workplace stressors include:
• Excessive workloads
• Scarcity of advancement opportunities
• Low salaries
• Exemption from decision-making
The role of employers in supporting mental health
Employers are not turning a blind eye to the impacts of stress, burnout and mental health issues. Close to 95% of HR professional respondents felt offering mental health resources could improve the overall health of employees, according to a Society for Human Resource Management (SHRM). Additionally, 88% of surveyed HR professionals believed mental health benefits could increase productivity and 86% thought employee retention would be improved.
Plus, employers are beginning to realize the ROI from mental health spending. Studies have shown providing high-quality mental healthcare solutions can:
• Result in savings of approximately $2,300 per person in health plan spending
• Reduce lack of productivity and poor performance by 15%-27%
• Improve employee retention (two times higher than workplaces without mental health offerings)
Effective mental and behavioral health benefits
When it comes to mental health benefits, there is no one-size-fits-all solution. The most effective way to improve workplace well-being and see ROI is by implementing a combination of strategies. To do this, employers have found it beneficial to survey employees to identify factors of poor mental health and what benefits are of most importance.
Once a company has a more thorough understanding of workplace stressors and desired solutions, it can tailor benefits and resources accordingly.
Providing comprehensive mental health-related benefits is high on the hierarchy of employee expectations. To satisfy this, businesses are implementing:
• Employee Assistance Programs (EAPs)
• Health plan networks that incorporate specific mental health offerings and specialty areas (ex: substance use and addiction recovery)
• Virtual mental healthcare options and computerized Cognitive Behavioral Therapy (CBT)
If employers are looking at mental health integration holistically, they may also want to consider applying preventative measures and wellness programs, such as:
• Stress management workshops that focus on recognizing workplace triggers, providing breathing techniques and demonstrating de-stress techniques such as progressive muscle relaxation
• Flexible work arrangements like hybrid work schedules as well as paid mental health and volunteer days
• Mindfulness and meditation options — for example, through applications such as Headspace, Calm and Insight Timer that offer guided meditations and mindfulness exercises
As a third tier to rounding out mental health offerings, employers can extend tools and resources to employees that support mental health, which include financial wellness programs, caregiver support, nutrition initiatives, peer-to-peer support, professional training and upskilling and return-to-work programs.
Importance of training leadership about mental health issues
Establishing comprehensive mental health benefits, preventative measures and resources is part of improving stress and burnout in the workplace. Another essential piece of enhancing workplace mind and body wellness includes training and educating leadership.
Not only should managers and leaders be equipped to recognize mental health issues and provide support as needed, but they should also be taught how to prevent mental health-related issues in the workplace. As an example, in addition to offering Mental Health First Aid to managers and leaders, businesses are finding it helpful to incorporate strategies centering on empathy and encourage supportive conversations.
Consequences of neglecting mental health in the workplace
The cost of ignoring workplace mental health is palpable. A Gallup survey found that missed work linked to poor mental health equated to close to 12 days, resulting in an estimated annual cost of $47.6 billion in lost productivity.
Additionally, the previously mentioned HSA survey revealed 84% of respondents reported their workplace conditions had contributed to at least one mental health challenge and 81% of workers said they would consider finding workplaces that support mental health in the future.
Looking ahead
If employers want to remain competitive, retain employees, reduce absenteeism and lower healthcare premiums, they must consider implementing mental health benefits and resources.
Thankfully, because of increased awareness around mental health in the workplace, there are more resources available to employers and employees to help educate and provide support.
Author: Elise Thorpe is a principal at Marsh McLennan Agency in the firm’s Scottsdale office (known previously as Lovitt & Touché). With more than two decades of experience in health and welfare, she helps companies of varied sizes and industries to develop and implement long-term strategic plans for their employee benefits programs.
