Workplace Mental Health as a Business Priority

January 27, 2026 | Industry Insights

Mental illnesses that affect employee productivity and safety are taking a toll in U.S. workplaces. OSHA says it’s not enough to protect workers from physical harm; employers also need to support their mental health. WorkCare offers holistic solutions with proven ROI benefits.

This is the fourth part of a series of articles on WorkCare solutions that align with critical occupational health and safety exposure risks and other top-of-mind concerns as U.S. employers begin the new year and develop long-term intervention strategies.

Workplace mental health is no longer just an HR issue. It is a business performance issue that directly affects productivity, retention, healthcare costs, and long-term workforce stability. Over the past decade, organizations have seen the link between employee well-being and operational outcomes become impossible to ignore.

As stigma around mental illness continues to decline, more employees are speaking openly about stress, burnout, and mental health challenges. That transparency has helped leaders connect the dots between workforce mental health, lost productivity, and rising medical and disability spend. Mental health is now firmly on the radar as a core component of business sustainability.

Catch Up on the Series

Even with growing awareness, gaps remain. Experts agree that mental health must move beyond awareness campaigns and become a central part of occupational health and safety strategy. Today’s data makes the urgency clear.

Employer-sponsored employee assistance programs (EAP) are still underutilized due to fear of career repercussions, lack of employee education about mental illness, caps on free or low-cost counseling sessions, and other factors.
The National Institute of Mental Health reports that one in five adults has a mental illness in any given year; only about half receive treatment.
A 2025 National Alliance on Mental Illness survey found that majority employees support co-workers with mental health challenges but have difficulty managing their own care, and they cited a lack of management commitment to workplace wellness programs.
A Gallup poll found that only 24% of U.S. employees strongly agree that their organization cares about their overall well-being.

Together, these findings highlight a clear reality. Mental health is no longer a side conversation in the workplace. It is a strategic priority that demands stronger leadership commitment, better access to care, and a more integrated approach to workforce health.

Why Mental Health Is Now a Workplace Risk and Regulatory Priority

Federal and state legislators are considering hundreds of proposals to expand workers’ compensation coverage for mental injuries. Meanwhile, OSHA officials are promoting the integration of mental health interventions into workplace occupational health and safety programs.

Undiagnosed and under-treated mental illnesses like depression, anxiety, and trauma-related disorders are leading causes of presenteeism (at work but not fully productive), absence, and disability. The World Health Organization reports that depression and anxiety alone are annually associated with 12 billion lost work days and $1 trillion in productivity loss.

Studies show that employees who feel safe, secure, and appreciated are less likely to feel burned out or get sick. Psychological and physical health is compromised when employees feel financially, emotionally, and physically vulnerable. Mental illness is associated with declines in physical stamina, work engagement, and life satisfaction. People who have difficulty coping due to mental illness are more inclined to make unhealthy lifestyle choices like smoking, lack of exercise, poor nutrition, excessive substance use, or not taking prescribed medications as directed.

The pressure to be mindfully present, consistently productive, and socially engaged at work – whether a job is remote, on-site, physically demanding, or mentally taxing – contributes to the development of occupational burnout, which is internationally classified as “a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed.”

Despite best efforts, mental health disorders can be difficult for co-workers and supervisors to recognize and appropriately address. The Center for Workplace Mental Health reports that symptoms may manifest themselves differently at work than they do at home. For example, an employee may attempt to mask symptoms like fatigue, poor concentration, or irritability only to have other potentially disruptive behaviors emerge.

Key Benefits of Workplace Mental Health Services

Forward-thinking employers are gaining significant returns on their investment in mental health resources for employees. Mental health services may involve the use of talk therapy, prescription medications, and wellness and injury prevention education. Here are some related study findings:

An analysis of 100 medium-to-large-sized companies published in the Journal of Mental Health Issues and Behavior found a significant positive correlation between an investment in mental health programs and improved economic outcomes, with an average ROI of 4:1. Companies with robust mental health initiatives had lower rates of absenteeism, employee turnover, and productivity loss when compared to those that did not have programs.
A Spring Health-Yale University cohort study published in JAMA Network Open found that a comprehensive employer-sponsored mental health program was associated with clinical improvements in depression and anxiety, fewer missed days of work, higher employee retention, and a positive financial ROI across all employee salary levels.
According to the 2024 Workplace Outcome Suite EAP Industry Global Report, brief counseling sessions accessed via employer-sponsored EAPs improved multiple aspects of work functioning and life satisfaction, with an estimated 5:1 ROI based on avoided loss of productive work time.

What Can Employers Do To Promote Mental Well-being?

When employers recognize the value of comprehensive mental health services as a long-term business sustainability strategy, they are less likely to respond to mental-health related incidents with punitive policies and procedures like they have in the past, according to Mental Health America.

During a September 2025 suicide prevention campaign, U.S. Department of Labor and OSHA officials said “workplace mental wellness is as important as physical health in all industries, and it’s important to know the best ways to offer help.” Related OSHA resources include suggestions on ways employers can reinforce workforce safety and Supporting Mental Health in the Workplace: Getting Started Guide for Senior Managers.

Experts encourage the adoption of organizational interventions to assess, mitigate, modify, or remove mental health risks. Recommendations include:

Education to improve mental health literacy and how to respond to signs of distress.
Training on first response to a mental health crisis.
Flexible work hours, as feasible, and reasonable accommodations for disabilities.
Clearly defined job expectations, performance rewards, and consequences.
Resources on stress management, fitness, nutrition, sleep hygiene, and other wellness topics.
Encouraging EAP utilization and tapping into community-based mental health resources.

How WorkCare Helps

WorkCare’s holistic delivery model –From Safety to Wellness® – provides a solid foundation for safe work practices, employee education on physical and mental health hazards in the workplace, and access to appropriate care. Our cost-effective interventions produce measurable ROI by reducing incident rates, productivity disruptions, workers’ compensation claims, and prolonged absences.

Learn about related WorkCare services:

On-site Clinical Services: Offering on-site mental health education programs, emergency response assistance, referrals to EAPs and other medical and psychosocial service providers, and post-incident debriefings.
Incident Prevention: Providing on-site injury prevention interventions, wellness education, and coaching that considers an employee’s physical, behavioral, and emotional health status.
Wellness Solutions: Supporting the well-being of first responders (e.g., police and fire personnel) and employees in all types of work environments using a total health model based on eight dimensions of well-being.

“When training and education, crisis response, and ongoing mental health support are part of a holistic approach to occupational health program management, employers can build a safer, more resilient workforce.” – Kathleen Wilhelmsen, Senior Vice President, WorkCare On-Site Clinical Services

FAQs

Q: What types of symptoms an employee with a mental health condition might exhibit at work?
A: Symptoms can vary widely depending on the nature of the condition. Cognitive and performance-related symptoms may include difficulty concentrating, indecisiveness, forgetfulness, and making mistakes. Emotional and behavioral symptoms may include irritability, inter-personal conflicts, detachment, mood swings, over-reactivity, or hypervigilance. Physical signs and symptoms may include fatigue, headache, gastrointestinal complaints, muscle aches, shortness of breath, and poor hygiene. An employee may share that they are having problems at home, trouble sleeping, feeling burned out, or having lost their sense of purpose.

Q: In my capacity as a supervisor, how should I approach an employee with potentially concerning symptoms of a mental health disorder?
A: Follow your company’s protocol. This may involve having a private, non-judgmental conversation with the employee in a safe place. Express concern about observed behaviors. For example, “I’ve noticed you’ve been getting to work late, missed some deadlines, and had some unexcused absences in the past few weeks.” Listen to the employee’s response without interrupting. Do not diagnose. As appropriate, offer support and resources with a promise of non-disclosure and without pressure to accept help. Do not threaten discipline during an initial conversation.

Q: Surveys show that younger employees (Gen Z and some Millennials) tend to have mental health and wellness concerns that differ from those of older generations, including anxieties around job security, economic realities, and social connectivity.
A: Employers are encouraged to demonstrate genuine commitment to workforce well-being by providing stress management and other mental health interventions, making EAPs an employment benefit, providing career coaching and mentoring, and being as flexible as possible to help support work-life balance.

For further reading on mental health in the workplace, check out Investing in Employee’s Mental Health