3 ways companies can prioritize employee mental health
WorkTango analyzed academic research and news coverage to explore how companies can prioritize employee mental health in a meaningful way.
3 ways companies can prioritize employee mental health
Updated
Mental health concerns were front and center for office workers adjusting to fully remote work environments at the height of the COVID-19 pandemic.
Between feelings of isolation, a never-ending news cycle, and the stress of staying safe, people sought support from their workplaces. A Society for Human Resource Management survey noted that employee benefits such as stress management, life coaching, and meditation programs increased in 2020. But, for many, it still wasn't enough. As the pandemic waned, industries that didn't give employees enough independence when it came to their work locations and how they allotted their time (such as dine-in restaurants, sporting events, and music concerts) saw the most employee exits, leading to the Great Resignation, Professor Dr. Isabell Welpe at the Technical University of Munich, told the World Economic Forum.
Even today, employers are still working to restructure their approach to mental health support to boost morale and retention. In many cases, workers are recognizing those changes. The American Psychological Association's 2022 Work and Well-being Survey found that 71% of people think their employer is more concerned about their mental health now than in the past.
But even with good intentions, employers are still falling short in providing a workplace environment that prioritizes well-being and meets their workers' needs. Mental Health America's 2023 Mind the Workplace survey found that 81% of employees who experienced work stress in 2022 felt it impacted their mental health compared to the 78% who reported the same thing in the year prior. To support building better workplaces, WorkTango analyzed academic research and news coverage to explore ways companies can prioritize employee mental health.
For some, the root of workplace stress begins with managers. SHRM's survey of 1,400 employees in 2024 cited poor management as one of the major stressors for employees, along with workload and understaffing. For others, it can mean things such as toxic workplace behavior, ambiguity in their role, and interpersonal conflict, according to McKinsey Health Institute's survey of 30,000 employees in 30 countries. Self-efficacy, purpose, and belonging can help offset these feelings.
Since the pandemic, companies have invested in employee wellness programs, a practice that market research company MarketsandMarkets projects to be worth $94.6 billion globally by 2026. However, many of these programs, which incorporate elements like meditation apps and online therapy, take a one-size-fits-all approach that overlooks broader and systemic workplace issues, according to an article published by the Harvard Business Review.
Christine Nicholl, founder of HR consulting company People X, told Stacker that in order to cultivate a psychologically safe workplace, offering programs that address mental health can only go so far. "You can have the best benefits in the world, but if somebody's burnt because their manager isn't leading effectively β¦ they're probably going to go find somewhere else to work," she said. Keep reading to learn how companies can help their employees' mental health.
Ask the people
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In Ashley Kera's eyes, there's still a stigma surrounding mental health. The founder and principal consultant at Kera Coaching & Consulting advises companies to take time to invest in making actionable changes.
"Rather than be reactive to employee issues, be proactive," she told Stacker. "How can you cultivate those cultures and provide systems and policies to really support them?"
Over the years, workers have spoken up on the policies and programs they want. When given the option to select from a list of 12 types of support they'd like to receive, the APA's 2022 survey found the top four chosen included flexible work hours (41%), a culture where time off is respected (34%), an option for remote work (33%), and a four-day work week (31%).
Experts caution companies not to fall into the trap of "carewashing" policies, an approach Harvard Business Review authors describe as "superficial care initiatives that workers may perceive as failing to tackle root causes" of workplace concerns. Instead, McKinsey Health Institute recommends a "holistic health" framework encompassing an employee's "physical, mental, social, and spiritual health." From there, companies can start to make changes for people individually, at the job level, within a team, and organizationally.
With flexible work arrangements becoming the norm in recent years, employees may need remote, hybrid, or in-person accommodations based on their role, workflow, and personal responsibilities. The APA advises companies to evaluate staff requirements and business goals before presenting various options for workers so employees can determine which options best suit their circumstances.
Be good models
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In her 2024 research for the SHRM, Daroon Jalil found that while 73% of employees said their companies claim to care about mental health, almost half said those workplaces don't take actions that support this sentiment. She notes one way to cultivate a workplace environment that benefits mental health is for leaders to be positive models. For example, a leader telling colleagues they're taking a few days off to unwind after a lengthy work project is modeling good mental health care practices.
Companies can create work-life balance through four-day work weeks to help employees manage stress and productivity. Trials of the model in other countries have led to more productivity and a boost in mental and physical health, according to the World Economic Forum.
It's also important for company leaders to proactively encourage workers to take advantage of the benefits available to them. Almost 70% of workers are unaware of what their employer offers, according to the SHRM. In Nicholl's experience, this information will sometimes exist on a company's intranet, an internal network where a business disseminates information to its workers, often without further advertisement.
"Sometimes you have a really great program that just sits on the shelf because nobody knows it's there," she said.
Train the leaders
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New programs and policies don't become successful overnight. This process requires leaders to learn more viable ways to support workers, effectively train managers, and listen to employee feedback.
Kera advises companies to step back, listen, and get to know their employees instead of making assumptions about their needs. That can start with collecting feedback through anonymous surveys, suggestion boxes at town hall meetings, or conducting focus groups.
"What's the data telling you? What do they want? What's feasible?" she said.
Managerial training is also crucial to creating a more psychologically safe workplace. For example, a previous company Nicholl worked at focused on the role of managers because of their multiplier effect within an organization. The thought process was, "Take care of the manager, and they'll take care of everybody else," she explained.
Taking the time to improve a manager's interpersonal skills has proven to reduce turnover by 60%, according to a 2021 analysis published by the National Bureau of Economic Research. And it makes a difference on a day-to-day level. Those who have a supportive manager are not only more comfortable asking for support, but they're also more confident in providing feedback, according to Mental Health America's survey.
Restructuring an organization's mental health approach can seem daunting, but establishing goals and metrics, creating a plan to streamline them into existing workflows, and actively following up on its progress can leave a lasting impact on an employee's perception of the company. A 2023 Deloitte survey found that reporting on how well a company is doing when it comes to the health of its employees could build trust between employees and companies.
"I'm a big believer [that] if you invest in the people, it's going to benefit your brand, bottom line," Kera said.
Story editing by Carren Jao. Additional editing by Elisa Huang. Copy editing and photo selection by Kristen Wegrzyn.
This story originally appeared on WorkTango and was produced and distributed in partnership with Stacker Studio.
Originally published on worktango.com, part of the BLOX Digital Content Exchange.
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