How Business Leaders Can Support Employee Mental Health

Yesterday was World Mental Health Day. I thought about publishing this edition of the newsletter yesterday, but then mental health isn’t a one day condition. It’s something that is there - in one form or another - every day, and businesses need to be aware of how they can support their people 24/7/365.

Our tech dominated work environment is increasingly fast-paced, moving employee mental health to the forefront of challenges facing businesses. Yet, despite the rise in employee mental health issues, there remains a persistent stigma that prevents employees from speaking openly about their struggles. As a result, they often suffer in silence, which is not only damaging to the individual, but can also impair productivity and long-term success of organisations.?

Business leaders need to recognise their responsibility to act. Supporting employee mental health is no longer optional – it is essential to creating a thriving workplace.

Last month I was lucky enough to attend Influence Greatness, the global conference on workplace culture hosted by O.C. Tanner in which they launched their 2025 Global Culture Report research findings. Needless to say, employee mental health is heavily linked to company culture so I am sharing some of the key findings from the report about the impact of mental health (I’ll write about some of the other research findings - and record a podcast chat - in a future newsletter).?

One recent study in the US found 76% of workers experiencing at least one symptom of mental health conditions such as burnout, anxiety, or depression. These issues are not confined to the US though, they are very much a global issue.?

Employees are increasingly looking for workplaces that prioritise mental health, and those that fail to do so risk losing talent. When employees don’t feel supported, productivity can plummet, absenteeism rises, and a form of presenteeism becomes commonplace with workers showing up to work but underperforming.?

The impact of poor workplace cultures on mental health cannot be overstated. The way organisations manage their people directly influences their mental wellbeing. When leaders ignore these factors, employees’ mental health can deteriorate, which will translate into higher absenteeism, increased workplace accidents, and even formal grievances.?

Business leaders who understand this connection must start making mental health a central focus of workplace culture. Here are 5 ways to start:

Destigmatize Mental Health Conversations

One of the biggest barriers to addressing mental health in the workplace can be the stigma associated with it. Employees might fear that speaking up about their mental health could lead to them being judged, which in the longer term can set back their careers and learning. As a results they may avoid seeking help which could compound their situation.?

Leaders have the power to end this stigma by creating an open and supportive environment where mental health conversations are normalised. To start, organisations should remove any fear associated with discussing mental health. Leaders should openly acknowledge that mental health struggles are part of life and demonstrate empathy by sharing their own experiences when appropriate. By setting an example, they can foster a culture where employees feel safe to speak up and seek support. Formal policies that prioritise mental health – such as mental health days and flexible schedules – also send a strong message that the company values the wellbeing of its workforce.

Recognition and Appreciation Matter

In addition to addressing the stigma, organisations can start improving mental health outcomes by integrating robust recognition programmes. Research consistently shows that gratitude and appreciation can significantly reduce symptoms of burnout, anxiety, and depression. When employees feel seen and valued for their contributions, they are more likely to stay engaged, motivated, and emotionally well.

Recognition should be more than just an occasional ‘thank you.’ It needs to be embedded into the fabric of the organisation. Leaders should create opportunities for frequent, meaningful recognition that aligns with the company’s purpose. This should go beyond merely acknowledging tasks completed; it is about highlighting the impact of employees' work to help foster a sense of belonging and connection. Regular recognition also helps reduce the likelihood of costly issues such as absenteeism, presenteeism, and even workplace accidents.

Improving Workplace Culture

The root cause of many mental health challenges lies in unhealthy - or worse, toxic - workplace cultures. When employees face unreasonable deadlines, lack of support, or experience conflict, their mental health takes a toll. It is up to leaders to foster a culture that encourages community, connection, and care.

A positive workplace culture won’t suddenly happen overnight but incremental, and intentional steps can make a big difference. Providing employees with opportunities for growth, giving them autonomy in their roles, and ensuring that leadership is approachable and supportive are crucial elements of a healthy culture.?

Leaders should also focus on reducing stress by promoting work-life balance, offering stress management resources, and setting realistic expectations and performance targets.

Offering Comprehensive Mental Health Benefits

Mental health benefits should be a key part of any organisation’s Total Rewards package. Access to mental health services, including therapy and counselling, is crucial to helping employees manage their wellbeing, along with offering subsidised mental health care.

Leaders need some form of training to be able to recognise signs of mental health. Implementing programmes that promote mindfulness, resilience, and stress management can also empower employees to take control of their mental health before issues escalate.?

Flexible work schedules, mental health days, and clear career advancement pathways can also help reduce the stress and uncertainty that contribute to mental health problems.

The Role of Leadership

The case for supporting employee mental health is clear. Poor mental health is not only harmful to individuals but costly for businesses. Companies with a culture of supporting and addressing employee mental health see fewer instances of burnout, have lower rates of absenteeism, and improved overall performance.?

Business leaders should take responsibility to create an environment where all employees, irrespective of employment status, feel safe, supported, valued, and empowered. Leaders and managers need to recognise the role they play in shaping their organisation’s culture and therefore their approach to supporting mental health. Cultures of support and recognition are also cultures where their people - and their business - thrives.