As the calendar has now officially flipped to 2025, many Americans are returning (or have already returned) to work with the joy of the holidays in their hearts and great memories running through their minds. That’s not the case for everyone, though. In fact, for many people, the holidays can be one of the most stressful or lonely times of the year.
Believe it or not, though, heading back to the daily grind may help, as increasingly, employers are finding themselves in the best position to provide mental health resources to their employees and dependents. And, if you’re one of the employers who offer mental health support and benefits, you’re not only helping your employees thrive but you’re also setting your organization up for long-term success.
Mental Health Impacts on Employee Performance
The connection between mental health and workplace performance is undeniable. Employees struggling with mental health issues — such as anxiety, depression, or burnout — are less likely to be engaged and productive. In fact, the World Health Organization estimates that depression and anxiety alone cost the global economy nearly $1 trillion each year in lost productivity. That’s a staggering statistic. Studies also consistently show that untreated mental health problems can result in:
- Higher absenteeism
- Presenteeism (where employees show up to work but are not fully productive)
- Increased turnover
The pandemic accelerated the shift in the conversation about mental health, as millions of workers faced isolation, stress, and uncertainty. This has led many employers to rethink how they can support their teams holistically, recognizing that mental wellbeing is just as important as physical health.
Prioritizing Mental Health Benefits
If you’re an employer, why should you prioritize mental health as part of your employee benefits package? I’ve outlined just a few of the reasons below.
Enhanced Productivity
Access to counseling, therapy, and stress management programs helps employees perform at their best, reducing stress-related impacts on work.
Attracting and Retaining Talent
Research has found that 65 percent of employees are more likely to stay if offered benefits that cover mental health services and support. Offering this kind of support gives employers a competitive edge.
Supportive Work Culture
Providing mental health benefits fosters a culture where employees feel valued and supported, improving morale and long-term retention.
Lower Healthcare Costs
Mental health issues can lead to physical health problems. Early intervention through mental health resources reduces severe health conditions and healthcare costs.
Mental Health Benefit Offerings to Consider
If you’re looking to enhance your mental health offerings, there are several steps you can take to create a comprehensive support system, such as providing:
- Employee Assistance Programs (EAPs) —Confidential counseling for personal and professional challenges.
- Mental Health Days — Paid days off to recharge and reduce burnout.
- Flexible Work Options — Better work-life balance through remote work and adaptable schedules.
- Manager Training — Equipping managers to recognize and support mental health needs.
- Access to Therapy and Resources — This includes telehealth counseling and mental health apps.
Compliance with Nonquantitative Treatment Limitations
And, in case the above reasons don’t make a clear case for investing in improved mental health resources for your employees, there is newly enacted legislation that makes it imperative. Employers must ensure compliance with the Mental Health Parity and Addiction Equity Act (MHPAEA), which mandates parity between mental and physical health benefits.
This includes addressing nonquantitative treatment limitations (NQTLs) like prior authorization and step therapy protocols to ensure they are no more restrictive for mental health care.
To comply, your company should:
- Document Plan Design — Maintain clear records of how NQTLs are applied.
- Conduct Audits — Verify that mental health limitations meet parity requirements.
- Communicate Clearly — Explain benefits and limitations to employees to build trust.
Failure to comply with the MHPAEA risks legal penalties and undermines employee trust.
Reach Out for Help
Offering mental health benefits is not just ethical — it’s a strategic business decision. Prioritizing mental wellbeing drives productivity, satisfaction, and retention while ensuring compliance with regulations like the MHPAEA. By integrating robust mental health support and resources into your benefits package, your organization can create a healthier, happier, and more engaged workforce, and who doesn’t want that?!
If you’d like help in determining what to offer or even how to implement mental health benefits, just reach out. We’re happy to help!
