For years, mental health has felt like a topic to tiptoe around, especially at work. Thankfully, that’s starting to change. More people are opening up about their struggles, and businesses are beginning to recognize that mental health isn’t just a personal issue — it’s a workplace issue too. After all, we don’t leave our emotions, stress, or challenges at the door when we clock in. They come with us, shaping how we focus, collaborate, and perform.
More and more, employees are speaking up about what they need. The data backs this up, showing just how significant the connection between mental health and work really is. In fact, 23.4% of U.S. adults experienced a mental illness in 2024. That’s over 60 million people, according to “The State of Mental Health in America” report.1
The “2025 Work in America™” survey underscores this reality, stating 93% of workers report that it is very or somewhat important for them to work for:
- an organization that values their emotional and psychological well-being
- an employer that supports employee mental health2
With such a large portion of the population affected, companies can no longer afford to treat mental health as a secondary concern. Let’s explore why supporting workplace mental health matters, how to integrate it into a comprehensive benefits package, and why doing so can help your organization build a more resilient, high-performing workforce.
Why Mental Health Is Essential in the Workplace
The Impact on Productivity and Retention
Employees experiencing mental health conditions may struggle to focus and fully engage with their work. This could impact your organization’s productivity, lead to increased absenteeism, and place additional demands on coworkers.
In fact, a national study of the U.S. workforce found that:
- 50% of workers report moderate to severe levels of anxiety
- 48% of workers say they have left jobs for mental health reasons
The good news is the same study found that employees who agreed with the statement, “Overall, my company supports my mental health,” were:
- Twice as likely to report no burnout or depression
- Three times more likely to trust their company and its leadership
- Two times more likely to intend to stay at their company for two years or longer3
These findings make it clear that supporting mental health requires more than good intentions. Employees need access to meaningful resources, and one of the most impactful ways you can provide that support is through your benefit offerings.
Insurance Coverage: A Cornerstone of Mental Health Support
Why It Matters
In the United States, health insurance is typically the primary — and most cost effective — way employees access mental health support. When you offer a benefits package that supports the physical and emotional well-being of your workforce, you show you care, help strengthen trust and engagement, and give your employees a compelling reason to stay.
Key Services to Consider
When designing or refining your benefits package, consider offering a mix of plans and services that support employees at different stages in their mental health journey. These might include:
- Health Savings Accounts (HSAs): If an employer offers a Section 125 Plan, employees may enroll in a qualified high-deductible health plan (HDHP) and pair it with an HSA to set aside pre-tax dollars for psychiatric care, prescriptions, diagnostic tests, and other eligible medical expenses. HSAs can help reduce financial barriers to care, making it easier for your workforce to proactively manage their well-being and stay healthier in the long term.
- Disability Income Insurance: Some mental health conditions — such as mood, anxiety, eating, or psychotic-spectrum disorders — may require extended time away from work for treatment. Disability income insurance can help protect a portion of an employee’s paycheck during recovery, which may reduce stress at a critical time. This support helps your people return to work more focused, stable, and prepared to reengage.
- Employee Assistance Programs (EAPs): EAPs provide confidential short-term counseling, crisis support, referrals, and everyday resources that help employees address challenges early before they escalate. For employers like you, EAPs can help reduce absenteeism, support healthier teams, and promote a more resilient and engaged workforce.
These offerings can work together to ensure employees have multiple pathways to access support, whether they need immediate assistance, long-term treatment, financial flexibility, or time away to prioritize their well-being. Providing a variety of options also makes it more likely that employees will seek and receive the support they need when it matters most.
The Business Case for Mental Health Investments
Positive ROI
Employers that offer employee mental health resources often see improved engagement, reduced absenteeism, and more consistent performance. But a new study helps prove why it’s also a practical business strategy.
Researchers followed 13,990 employees and dependents across multiple industries for nearly five years, finding that every $100 invested in an employer-sponsored behavioral health program with fast access to psychotherapy and medication management was associated with a reduction in medical claims costs by $190.4 This means that a well‑designed mental health program may meaningfully reduce your healthcare spending while still supporting a healthier, more productive workforce.
Building Resilience
Beyond return on investment, investing in mental health also helps build long-term organizational resilience. Employees with comprehensive insurance coverage are better prepared to manage their personal and professional challenges.
Over time, teams that feel supported tend to adapt to change faster, collaborate more frequently, and bounce back from setbacks. This helps you build a workplace culture that stays productive and steady even during periods of uncertainty.
The Bottom Line on Workplace Mental Health
When your organization invests in workplace mental health, you’re not just taking care of your employees. You’re also building a stronger and more resilient future.
With this in mind, what better time than now to evaluate your current offerings? Partnering with an experienced benefits administration provider can help you tailor a plan that promotes employee well-being and organizational success.
This blog is up to date as of June 2026 and has not been updated for changes in the law, administration, or current events. American Fidelity does not provide financial, legal, or tax advice. Consult an attorney or a tax professional regarding your specific situation.
1Mental Health America. “The State of Mental Health in America 2025.” https://mhanational.org/wp-content/uploads/2025/09/State-of-Mental-Health-2025.pdf. Published October 2025, Accessed February 4, 2026, p. 6, 14.
2American Psychological Association. “2025 Work in America™.” APA. https://www.apa.org/pubs/reports/work-in-america/2025/2025-full-report.pdf. Published July 2025, Accessed February 4, 2026, p. 20.
3Mind Share Partners. “2025 Mental Health at Work Report.” https://www.mindsharepartners.org/2025-mental-health-at-work-report. Published May 9, 2025, Accessed February 4, 2026, p. 5-6.
4Hawrilenko M, Smolka C, Ward E, et al. “Return on Investment of Enhanced Behavioral Health Services.” JAMA Network Open. https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2829859. Published February 5, 2025, Accessed February 4, 2026.
Health Savings Accounts: HSA contributions are not subject to federal and most states’ income tax. State income tax may apply in California and New Jersey. Please consult a tax advisor for your state’s specific rules.
Disability Income Insurance: This product may contain limitations and exclusions.
