Why Mental Health Benefits Are No Longer Optional for Employers
The Workplace is in Crisis - And Employees Are Talking
Walk into any break room, scroll through LinkedIn, or check the latest Glassdoor reviews - employees aren’t just leaving jobs for higher salaries anymore. They’re leaving because they feel mentally drained, undervalued, and unsupported in their workplace.
Burnout, quiet quitting, and stress-related absenteeism are at all-time highs. According to Gallup, 76% of employees experience burnout at least sometimes, with 28% feeling burned out "very often" or "always". When your employees feel burnt out, their productivity drops, their engagement disappears, and their loyalty to the company erodes.
For businesses, this is more than just an HR issue. It’s a financial and performance crisis that companies can no longer afford to ignore.
The Hidden Costs of Ignoring Employee Mental Health
1. Skyrocketing Turnover Costs
Replacing an employee costs up 1.5 to 2x their annual salary when you factor in hiring, training, and lost productivity. Employees who feel emotionally and mentally supported are more likely to stay, reducing costly turnover.
2. Declining Productivity & Engagement
Stressed, anxious employees can’t perform at their best, leading to disengagement and lost productivity. Research from Health Canal found that untreated workplace mental illness costs the U.S. $3.7 trillion annually, yet only $43 billion is spent on treatment - just 1.1% of what’s needed. The result? Businesses lose billions in efficiency, turnover, and absenteeism, all because mental health continues to remain an afterthought.
3. Reputation & Talent Attraction
Companies that ignore mental health are developing a bad reputation and job seekers are paying attention. The next generation of workers are actively seeking out employers with real, actionable mental health benefits. If your company isn’t prioritizing mental health, it’s already losing top talent to those that do.
What Employees Are Really Saying (But HR Doesn’t Hear)
Here’s what employees aren’t saying in exit interviews, but are definitely discussing in private:
❌ “I’m constantly overwhelmed, but if I take a mental health day, my boss will think I’m lazy.”
❌ “I need therapy, but my insurance barely covers it, and I can’t afford to pay out of pocket.”
❌ “We have an EAP, but no one even knows how to use it.”
❌ “This company says they care about mental health, but when someone is struggling, nothing changes.”
Lip service doesn’t cut it anymore. Employees want actual solutions.
Practical Actions Employers Can Take Today
1. Move Beyond the Bare Minimum EAP
Most Employee Assistance Programs (EAPs) are underutilized because they’re outdated, confusing, or difficult to access. Instead of just offering an EAP, make mental health support accessible and proactive by:
- Partnering with mental health apps (Calm, Headspace, BetterHelp) or even better service providers (Enthea).
- Offering free therapy sessions, not just discounted ones.
- Making it easy for employees to access services - no unnecessary hoops to jump through.
2. Normalize Mental Health Days (Without Guilt)
If employees feel like they’ll be judged for taking a mental health day, then they won’t use them.
Companies should:
- Encourage leadership to model taking mental health days.
- Think of mental health PTO.
- Make it clear that mental health is treated the same as physical health.
3. Train Managers to Recognize & Respond to Burnout
Many managers have no idea how to support employees struggling with mental health. Train leadership to:
- Spot signs of burnout before it becomes an unsolvable crisis.
- Have supportive, non-judgmental conversations about workloads.
- Direct employees to resources without stigma.
4. Integrate Alternative Mental Health Solutions
For employees with severe burnout or depression, traditional therapy alone might not be enough. Forward-thinking companies are now:
- Covering Ketamine-Assisted Therapy (KAT) for treatment-resistant employees.
- Offering on-site or virtual mental health coaching.
- Partnering with progressive mental health providers.
The Future: Companies That Invest in Mental Health Will Win
Mental health benefits aren’t perks, they’re a business necessity.
Companies that take employee well-being seriously will see:
- Higher retention & lower turnover costs.
- Increased engagement & productivity.
- Stronger employer brand & talent attraction
It’s simple: The best talents are choosing to work where they feel valued, protected, and supported. Is your company one of those places?
