Why mental health support is an employee benefit in 2025

Mental health is a crucial part of who we are. It shapes how we work, connect, and thrive. Yet, many workplaces overlook the importance of addressing mental health proactively, leading to significant economic and human costs.

In this blog, let’s unpack how mental health affects productivity, the challenges businesses face, and practical ways to create a workplace where everyone feels supported.

Why Mental Health Matters

Mental health issues such as anxiety, depression, and stress are increasingly prevalent in workplaces worldwide.

The World Health Organization (WHO) estimates that depression and anxiety cost the global economy around $1 trillion every year in lost productivity. Globally, about 12 billion working days are lost each year because of mental health challenges.

In the UK alone, the Office for National Statistics (ONS) reports that public sector employees lost 18.5 million working days to mental health-related issues in 2022. This figure marked a significant rise compared to previous years, underscoring the growing impact of mental health challenges on workforce efficiency.

Understanding the Productivity Loss

Absenteeism and Presenteeism

Mental health issues don’t just lead to people taking time off. Often, they show up at work but struggling to concentrate, make decisions, or give their best.

Imagine trying to work while battling anxiety or burnout. Tasks that once seemed simple might feel impossible. Team dynamics can also suffer when colleagues have to pick up the slack, often without fully understanding what’s going on.

Economic and Organisational Costs

The economic burden of poor mental health is staggering. For instance, unresolved depression contributes to a 35% decline in individual productivity, resulting in billions of dollars in economic losses annually. Moreover, mental health-related challenges can lead to higher turnover rates, increased recruitment costs, and diminished organisational morale.

Generational Shifts

Younger generations, particularly Gen Z and Millennials, are reporting higher rates of mental health issues compared to older generations. According to recent insights by Very Well Health, Gen Z employees are taking more sick days due to mental health concerns, with stress and burnout being leading factors. This trend not only highlights the growing challenges of maintaining mental well-being but also underscores the pressing need for employers to implement effective mental health support systems.

Without such measures, organisations risk losing young talent who prioritise workplaces that value their overall well-being.

Remote and Hybrid Work

Hybrid and remote work models, while offering flexibility, can exacerbate mental health challenges. The isolation and lack of clear boundaries between work and personal life contribute to higher stress levels, making it imperative for organisations to rethink their approach to employee well-being.

Strategies for Supporting Mental Health at Work

1. Start the Conversation

Stigma around mental health remains a significant barrier. Organisations must cultivate a culture of openness where employees feel comfortable discussing their struggles without fear of judgment or reprisal. Leadership teams can play a crucial role by normalising conversations around mental health and leading by example.

2. Offer Flexibility

Flexible work policies, such as remote working options and adjustable hours, can help employees manage their mental health better. These arrangements empower individuals to balance work and personal responsibilities more effectively, reducing stress and burnout.

3. Providing Access to Mental Health Resources

Companies can support their workforce by offering mental health resources such as counselling services, wellness programmes, and stress management workshops. Partnering with mental health professionals to create tailored programmes can have a profound impact on employees’ well-being.

Including mental health benefits in employee packages is increasingly becoming a priority for job seekers. A significant portion of employees actively look for mental health support as part of their benefits. By offering these resources, organisations not only attract top talent but also increase employee satisfaction and retention.

4. Training Managers and Teams

Equipping managers with the knowledge and skills to identify signs of mental health issues is vital. Training programmes can enable them to provide timely support and direct employees to appropriate resources. Similarly, team-level interventions can foster empathy and collaboration.

5. Creating Restorative Workspaces

The design of physical workspaces can significantly influence mental health. Incorporating natural light, green spaces, and areas for relaxation can help employees feel more energised and focused. Additionally, offering quiet zones for deep work or meditation can contribute to stress reduction.

Why Addressing Mental Health is a Win-Win

Investing in mental health initiatives benefits both employees and organisations. Employees who feel supported are more likely to stay motivated, engaged, and loyal to their employers. In turn, organisations enjoy improved productivity, reduced absenteeism, and a more positive workplace culture.

Data from studies indicate that for every dollar invested in mental health programmes, organisations see a return of $4 in improved productivity and reduced healthcare costs.

This compelling evidence underscores the tangible benefits of prioritising mental well-being.

How Beyond Borders HR Can Help You

At Beyond Borders HR, we’re committed to helping organisations prioritise mental health in meaningful ways.

We work with organisations to develop mental health policies, conduct workforce assessments, and offer leadership training to create a culture of well-being.

Book a Free Consultation with us

Whether it’s designing wellness programmes or helping your teams access the support they need, we’re here to guide you.