More than a third (35%) of workers say their job harms their mental health, according to SHRM research from 2024. This problem can lead to high employee turnover and reduced productivity if left unaddressed. SHRM found that burned-out workers are almost three times more likely to be actively looking for another job (45% versus 16% of those who did not report burnout). Meanwhile, the American Psychiatric Association reports that untreated depression contributes to a loss of $210.5 billion a year to the U.S. economy, due to productivity loss, higher medical costs, and absenteeism.
This phenomenon is more prevalent with each successive generation: In 2023, SHRM research found that 43% of Generation Z employees, 40% of Millennials, 32% of Gen Xers, and 20% of Baby Boomers and Traditionalists reported experiencing negative mental health impacts due to work. As the business landscape becomes more complex and stressful, it’s more important than ever for organizations to take employee mental health seriously.
Fortunately, mental health awareness in organizations has grown in recent years. When employers implement programs in response to mental health challenges, they can foster a more productive, supportive work environment that improves employee experience and leads to better business outcomes.
Common Concerns That Impact Workplace Mental Health
Employees are dealing with multiple stressors that can harm their mental health. Not all of them begin in the workplace, but they can all impact employees on the job. While this list is far from comprehensive, here are some key issues employers should be aware of.
Automation Anxiety
A 2023 American Psychological Association survey found the increased popularity and integration of artificial intelligence is a cause of concern for many employees, increasing their stress over job security and potential role replacement.
This is happening as employees are pressured to adapt to rapid technological changes. Many experience “technostress” and lack confidence in their ability to effectively use new technologies, often due to insufficient employer-sponsored training.
Political Unrest and Incivility
Political polarization during election season, coupled with the reactions to election results, can impact an employee’s ability to collaborate effectively with colleagues, as political disagreements in the workplace may create stress, hinder open communication, and disrupt teamwork, leading to feelings of demotivation and disengagement.
Research from LifeStance Health found that a significant majority of employees (79%) said the 2024 U.S. presidential election caused them anxiety. The SHRM Q3 Civility Index also found that workers increasingly attribute workplace incivility to differing political opinions. Incivility collectively costs U.S. organizations more than $2 billion a day in lost productivity and absenteeism.
Stress
Perhaps no job is truly free of stress, but some people experience workplace stress much more acutely than others. Almost 1 in 3 employees (30%) said their job often makes them feel stressed, while 26% often feel “overwhelmed” by their job, according to SHRM research. Key drivers of stress include workload, pay/compensation, type of work, bad management, and understaffing.
Worries About Finances
Financial crises can cause employees to worry about their company’s financial health, as well as their own job security. Also, factors such as inflation can strain employees financially, leading to increased anxiety about their broader financial future and a sense of instability in their careers. A 2024 Workforce Monitor study by the American Staffing Association and the Harris Poll found that 53% of workers feel their paychecks aren’t keeping up with inflation.
Low income correlates with poor mental health among working-age adults. Employees reported losing an average of more than seven hours of productivity a week due to financial stress, cost U.S. employers a combined $183 billion each year, according to financial wellness provider BrightPlan’s Wellness Barometer Survey.
How Companies Are Responding to Mental Health Challenges in the Workforce
Organizations increasingly recognize the importance of corporate responsibility and the benefits of creating a supportive work environment for their employees. As younger generations of workers become more vocal about mental health, business leaders are recognizing the benefits of prioritizing it, including higher retention, job satisfaction, and productivity. Some approaches organizations are taking include:
Stigma Reduction
The stigma around mental health conditions in the workplace can cause affected employees to miss out on promotion opportunities, be excluded from important projects, and be perceived as incapable, unless it is properly addressed in the workplace.
Employees who have faced stigma for mental health concerns in the past are less likely to disclose their needs to employers. This lack of disclosure can prevent them from accessing effective interventions and necessary accommodations, hindering their ability to perform productively at work.
Employers can address this problem by implementing stigma reduction training for managers, HR leaders, and executives through mental health-focused conferences, summits, and workshops. Such programs can also help employers overcome hiring biases against people with mental illness.
“When I talk with employers, I ask them to put aside everything they’ve ever heard about people with disabilities and to stop thinking about everything they think they can’t do as an employer. If we know that the biggest barrier standing in the way of someone’s improved quality of life is stigma or bias, we have to address that piece,” said Jill Bezyak, a licensed psychologist with master’s and doctoral degrees in rehabilitation psychology who led a research study focused on overcoming stigma toward individuals with disabilities.
But stigma reduction training is just the first step in promoting a more inclusive and diverse employee workforce. Once employees are hired, business leaders need to maintain a workplace culture that consistently prioritizes well-being through ongoing programs.
For example, the SHRM Mental Health Ally certificate program can empower HR professionals to continuously support employees’ emotional wellness needs in the workplace.
Early Intervention Training
Along with reducing stigma, workers can be trained to provide low-level mental health assistance in the workplace during a crisis. One popular approach is mental health first aid (MHFA) which equips individuals with the ability to recognize, understand, and respond effectively to early signs of mental health challenges.
Much like its physical counterpart, MHFA involves providing immediate assistance until professional help can be sought. For organizations, making this training part of creating a mental-health-friendly workplace is not only a compassionate act but also a strategic business decision that can allow employees to receive care before a crisis impacts the office more widely.
Employee Wellness Programs
Organizations that invest in mental health support see a significant return, with studies showing a $4 return for every $1 spent.
Equipping employees with the right mental health tools and resources helps them navigate and de-escalate moments of intense pressure, such as burnout and suicidal ideation.
Organizations can also prevent employee mental health crises by offering programs such as:
Employee Assistance Programs (EAPs): EAPs offer mental health resources and counseling to help employees navigate personal and professional stress that can negatively impact work productivity.
Wellness Perks: Promoting physical activity, such as by offering gym memberships to employees, has multiple benefits, including reduced absenteeism, fewer sick days, and a positive return on investment.
Exploring Other Avenues to Enhance Workplace Mental Health
Programs can have positive mental health impacts even if they were not explicitly designed for that purpose. Professional development opportunities are a great example, as they can help workers feel a sense of purpose and know their employer is invested in their future.
Perhaps counterintuitively, AI tools provide a great opportunity to use training to reduce stress and anxiety. According to the AI Anxiety in Business Survey conducted by Ernst and Young, 71% of employees are concerned about AI.
“As businesses continue to adopt generative AI, leaders must keep employees at the center and help overcome fear-based barriers to usher in a new era of productivity and growth,” said Dan Diasio, EY global artificial intelligence consulting leader.
To overcome employee anxiety and stress regarding the rise of AI, employers can incorporate relevant, industry-specific training as AI tools are integrated into employee workflows. This will help empower employees as professionals, optimize their workflow, and boost productivity, as well-trained employees feel better equipped and more confident performing job tasks.
Measuring the Impact of Workplace Mental Health Programs
As workplace trends evolve and employee needs shift, it’s important for business leaders to adopt a systematic approach to evaluating the effectiveness of their mental health programs and policies to ensure continuous improvement and alignment with priorities.
Organizational leaders can use these tactics to gather qualitative and quantitative data in real time to enhance their mental health initiatives:
Facilitate a Culture of Transparent Discussions
Employees value the opportunity to be heard. Focus groups provide a venue for team members to raise questions, share concerns, and offer feedback on your organization’s wellness programs. These groups also help business leaders gain in-depth insight into employees’ desires and needs.
You can facilitate focus group discussions by starting with targeted questions designed to gather actionable, qualitative-driven insights from employees. These questions are categorized into themes to help you gain a deeper understanding of your organization’s mental health practices and identify opportunities for improvement based on employee feedback.
Questions for Assessing Effectiveness and Impact:
In your experience, how effective have the organization’s mental health policies and programs been in addressing employee needs?
Can you share an example of a program or resource that has positively impacted your mental well-being at work?
Do you think the mental health initiatives on offer have improved workplace culture and/or productivity? If so, how?
Questions for Assessing Support and Stigma:
Do you feel comfortable discussing mental health concerns with colleagues, managers, or HR? Why or why not?
Have you observed any stigma related to mental health issues in the workplace? If so, what could be done to reduce it?
How supported do you feel when you try to balance managing personal mental health challenges with meeting professional expectations?
Research indicates that while EAPs effectively address mental health issues that impact productivity, their usage remains low.
If you notice low utilization of mental health resources, focus groups can also serve as an opportunity for leadership to remind employees of these resources and emphasize their benefits.
Questions for Assessing Awareness and Accessibility:
How familiar are you with the organization’s mental health resources?
Do you know how to access these resources, and have you faced any challenges in doing so?
Are there any other barriers that prevent you from using the mental health programs on offer?
Depending on your organization, gathering qualitative employee feedback may be better done by conducting pulse surveys. You can analyze individual and group employee morale trends and perceptions through survey tools.
Discussing mental health, particularly in the workplace, can be a sensitive topic for many. When facilitating focus group discussions or conducting surveys, avoid intrusive questions (while adhering to HIPAA regulations) and establish a foundation for conversations driven by empathy, kindness, and respect.
Navigating the Challenges of Implementing Mental Health Programs at Work
There is no “one-size-fits-all” approach for a multigenerational workforce when implementing mental health resources. Each generation brings unique experiences that shape its perceptions and behaviors at work. While some employees were raised in a time and environment where mental health challenges were often stigmatized, others may feel more comfortable being vocal about their mental health struggles in the workplace. As a result, organizational leaders must adopt tailored approaches to meet the diverse needs of an intergenerational workforce when implementing mental health programs.
Also, not all organizations are the same. Depending on your company’s mission, values, and goals, you may attract employees who share similarities in how they consume or perceive mental health information, or you may have stark differences. Consider generational communication preferences, evolving attitudes toward mental health, and tailored programs to cater to different employee needs.
Management and leadership buy-in are critical to these transformations. When leaders model and champion support for mental health programs and initiatives, they help reinforce the organization’s goals.
Keeping the Conversation Going
Workplace mental health isn’t a challenge that organizations can solve all at once. It takes continuous iterative work from HR leaders to build a safe, supportive culture where employees can thrive. Get additional resources with the Mental Health in Your Workplace field guide from SHRM and the SHRM Foundation and discover tips for assessing your organization, shaping your culture, and measuring your progress.
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