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April 30th, 2025 | 3 min. read
While more employers understand the importance of mental health support, there’s still a disconnect between what workers need vs. what companies provide. This divergency continues throughout the U.S. and Canada. However, companies that prioritize mental health and adopt some simple strategies can make great strides in improving their employees’ overall wellbeing.
The disconnect between the wellbeing of workers and what company executives perceive to be the temperature of the room remains a pervasive issue in the workplace. While research shows most C-suite leaders actively prioritize worker wellbeing in their overall benefits strategy, many employers are puzzled as to why their attempts aren’t resonating with workers — or helping to improve their mental health.
Oftentimes, worker mental health needs and a company’s offered mental health benefits just don’t fit. While the pandemic sparked an uptick in mental health issues, the issue has not abated as today’s workers continue to grapple with severe mental health concerns. About 10% of employees in 2022 reported they were struggling with chronic depression, compared with 6% in 2021. During that same time period, the number of employees that reported substance use disorders, self-harm and suicidal thoughts also rose 2%.1
Approximately 63% of employees say their physical and mental wellbeing is “excellent” or “good,” while about a third report that they’re always or often irritable, lonely and depressed, and they don’t believe that their manager cares about their wellbeing.2
Employee apprehension has not made it easier: 30% of workers would not seek out help from a workplace resource over privacy concerns, stigma and insufficient information on what’s available.3
Ignoring mental health can have significant consequences, including higher rates of absenteeism and presenteeism, additional short- and long-term disability and workers’ compensation claims and rising health care costs from co-morbidities. It can also impair recruiting and retention, particularly among young workers, who prioritize their wellbeing.
While three-quarters of employers intend to augment their commitment to employee wellbeing, only half of employees say they’ve seen such an increase.4
Most workplaces provide some source of mental health support through an employee assistance program (EAP) or an employee and family assistance program (EFAP). Employers that offer a health plan must cover mental health, but those benefits are often limited. Even accessing help can feel like you’re navigating a labyrinth: It is difficult to obtain referrals, retrieve payment accounts, meet deductibles and simply find an available mental health professional. Similarly, companies generally offer only a few therapy sessions under an EAP.
Data analysis is key to finding the right wellbeing strategy
Employers that offer mental health counseling or short-term counseling resources from an EAP may be checking off a box — but it’s unlikely to be effective on its own. Leadership needs to look into their mental health benefits plan and consider how they can layer elements to plug these gaps. By understanding what employees need and finding an insurance partner with innovative solutions, employers can present a comprehensive mental wellbeing strategy — one that will provide the resources workers truly need.
To make meaningful changes, employers should:
- Analyze the data. Review claims history, including healthcare and disability claims, costs and duration of leave and prescription drug use. If mental wellbeing has been largely ignored, it will be reflected in rising claims costs in those areas.
- Use data to identify the gaps. A deep dive can help answer questions such as: Can employees access counseling without paying a high deductible? Can they find providers willing to take their insurance? Are enough sessions provided through the EAP/EFAP — and are employees even aware of the benefit? Are workers in different demographics disproportionately using — or finding it difficult to access — the benefits?
- Up your communication. An organizational-wide mental health awareness campaign can help destigmatize mental health issues and make employees aware of available resources. Adding a layer of mandatory mental health training for managers and optional mental health support training for all interested employees can help leaders identify workers who may be struggling.
- Consider offering more robust mental health supports. This might include providing more mental wellness care under the company health plan, adding a meaningful number of therapy visits to an EAP/EFAP, offering digital options, or carving out mental health and contracting with a third-party vendor that offers enhanced support.
- Make sure leadership is supporting the strategy. Make sure leadership is committed and accountable for creating the psychologically safe workplace employees need. Obtaining executive support and ensuring they act as mental wellness role models will be paramount for a successful program.
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1Lyra Health, “2024 State of Workforce Mental Health Report,” accessed April 22, 2024.
2Deloitte, “As workforce well-being dips, leaders ask: What will it take to move the needle?” June 20, 2023.
3The Hartford, “Race and Culture Affect U.S. Workers’ Comfort Talking About Mental Health,” July 14, 2022.
4Human Resources Executive, “As employees call for more wellbeing support, how HR can help,” March 18, 2024.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.
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