How Employers Can Support Employees' Mental Health

Originally published on LinkedIn.

For many companies, the ongoing COVID-19 pandemic has cast a light on the mental health challenges facing today’s employees. According to the CDC, more than 1 in 5 adults in the US live with a mental illness, and 24% of American workers report feeling depressed or anxious at least once per week. As a CEO with close ties to many of our team members at Brighton Health Plan Solutions, this is something I take very seriously.

The Cost of Poor Mental Health

The mental health of employees affects the workplace – more so than we may realize. In fact, 71% of employers believe that the poor mental health of their workforce is having a negative financial impact on their company. In particular, mental health concerns are causing employees to leave their jobs. The Harvard Business Review reports that 68% of Millennials and 81% of Gen Zers have left roles for mental health reasons, both voluntarily and involuntarily.

The National Alliance on Mental Illness estimates that untreated mental illness costs the US up to $300 billion per year due to lost productivity, absenteeism, employee turnover and increases in medical and disability expenses. Some estimates predict that treating the widespread anxiety and depression caused by the pandemic will ultimately cost the US $1.6 trillion.

Yet, employers are lagging in their response to the growing mental health crisis. The number of employers offering an Employee Assistance Program (EAP) was only 30% in 2022, a significant decrease from 2020’s 54%. Though 82% of employers say they have an open and inclusive environment that inspires dialogue about mental health, only 48% of workers agree. The same is true for the availability of mental health resources: 82% of employers say their workforce has access to more mental health resources than in previous years, but only 50% of workers feel the same.

How Can Employers Help?

Though employers may hope to cut costs by trimming resources, providing generous mental health support for employees can actually help your bottom line by increasing productivity and reducing absenteeism. Workers who feel supported by their employers are 26% less likely to report at least one symptom of a mental health condition. They are also less likely to underperform or miss work and have higher job satisfaction and intentions to stay at the company. 

Fortunately, there are several steps we as employers can take to improve the well-being of our workforce. First, we need to make mental health an organizational priority. That means creating an open and transparent culture, so that employees who seek help for mental health challenges don’t experience stigma.

In the past, it wasn’t uncommon for managers to avoid discussing an employee’s personal life. But today’s effective managers recognize the value of checking in regularly with their team members. It’s important for company leaders to encourage managers to have frequent dialogue with their employees to identify and reach out to anyone who may need extra support. When managers understand who their employees are both inside and outside of work, and what other responsibilities they may have, it creates an environment where employees feel comfortable sharing their lived experiences and bringing their authentic selves to work.

Beyond creating an open and supportive environment, employers should provide comprehensive mental health benefits, including an Employee Assistance Program. An EAP offers resources like wellness programs, online classes and access to personal coaches and counselors. Additionally, companies can offer their employees subscriptions to apps and programs that help individuals reduce stress and anxiety.

Finally, it’s important to make sure that all employees are taking the necessary time off to rest and recharge. Though remote work has benefits in terms of flexibility, it also means that some employees feel pressured to work longer hours or work while they are on vacation. In fact, Pew Research found that nearly half of workers take less paid time off than they are offered. One way we can address this as employers is to offer use-it-or-lose-it vacation day policies, so employees won’t carry over their PTO and ultimately forget about it. Another way is to make sure managers are supportive of employees taking the time off they have earned.

The Benefits of Prioritizing Mental Health

These mental health initiatives benefit employees, but they can also help employers stand out from their competitors in terms of recruitment and retention. Both potential new hires and existing employees are more likely to choose companies that offer comprehensive mental health benefits. With 91% of workers affirming that a company’s culture should support mental health, it’s clear that employers can no longer ignore this issue.

So, as we continue to manage the lasting effects of the pandemic and look toward the future, I encourage you to think about ways to prioritize your employees’ mental health. In my experience, offering wellness resources leads to a workforce that is happier, healthier and all around more productive.