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Providing Mental Health Support for Employees Is Good Business

By James McDonough posted 05-07-2025 08:05 AM

  

Ignoring the mental health of employees is bad business. A variety of surveys find that many workers face mental health challenges that impact their workplace performance, and they expect help from their employers.

Consider the following: 

  • 51% of HR leaders report an increasing demand for mental health leaves. (Headspace) 

  • $154 billion annually is lost by employers to stress-related employee absenteeism. (Cigna) 

  • 73% of employees report that work-related mental health struggles hurt their performance. (Lyra) 

Further data indicates that employee performance and retention improve when employers support mental wellness. Simply put, supporting employee mental health is good business. 

Organizational leaders depend on HR professionals to enhance their workforce; as such, review these components of a successful workplace mental health initiative: 

Legal Considerations 

To mitigate risk exposure, employers must understand the limitations of their workplace mental health efforts. Although no federal law specifically mandates employers to promote workplace mental health, several laws afford various rights to employees that may relate to their mental health and the privacy of their personal health information. State laws may offer additional protection. 

Leadership Buy-In 

Any successful workplace initiative requires strong leadership support. To earn this support, develop a compelling business case, align initiatives with organizational goals, and communicate the risks of ignoring mental health issues. The national Health Action Alliance offers a free resource to help build the business case. 

Plan Development 

Data-driven plans maximize effectiveness, provide benchmarks for progress, and earn sustained leadership support. Gather data to identify organizational needs and gaps, and to determine specific metrics targeted by the plan (e.g., absenteeism, health costs, etc.) 

Workplace Culture 

To foster a supportive workplace culture, normalize conversations about managing mental health. Leaders who model this behavior will reduce the stigma that often prevents employees from seeking the help they need. Learn more in Employers Council’s Employers Guide to Managing Workplace Culture. 

Training and Awareness 

Comprehensive training for HR staff, supervisors, managers, and employees helps build a supportive workplace culture that sustains plan success. Proper training may also mitigate risks associated with employee rights and privacy.  

For a deeper dive into these topics with more resources, members may access our Employers Guide to Managing Workplace Mental Health.  

Contact us with questions about membership benefits, resources, and services. 

James McDonough is an HR research consultant for Employers Council. 

 

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