The Growing Importance of Mental Health Benefits in the Workplace

As a benefits broker, I am frequently asked about mental health resources. Over the past few years, this topic has become a critical focus for HR and benefits managers seeking to balance rising healthcare costs with programs that boost employee productivity, engagement, and retention while positively impacting company profits.

Rising Healthcare Costs and the Demand for Mental Health ROI

A recent Lyra Health study highlights the importance of demonstrating the return on investment (ROI) for mental health care programs. According to the study, 87% of benefits leaders prioritize proving the effectiveness of these programs. However, less than one-third of companies strongly trust their mental health vendors’ ROI claims, emphasizing the need for credible, data-driven evidence.

Joe Grasso, Ph.D., Vice President of Workforce Transformation at Lyra Health, explains the significance of ROI: "Mental health support impacts retention, engagement, and productivity. With increasing mental health disability leaves and widespread burnout, employers must demand evidence that these programs deliver measurable results."

Key Mental Health Trends for 2025

Healthcare Costs Challenge Mental Health Programs

Surging healthcare costs continue to challenge employers, but strategic mental health benefits can offset these challenges.

• Recruitment and retention strategies, bolstered by comprehensive mental health programs, help mitigate costs related to employee turnover.
• Nearly 88% of HR leaders believe robust mental health offerings improve employee retention, according to Lyra Health's research.

Addressing Complex Mental Health Needs

Managing mental health conditions such as severe depression, suicidality, and substance use disorders (SUDs) remains a significant challenge.

• 1 in 20 U.S. adults experience severe mental health conditions.
• Mental health disorders have increased by 40% in recent years, costing organizations billions annually.
• Access to care: Long wait times and limited availability of specialists hinder employees from receiving proper treatment. Lyra Health found that 74% of employees struggle to find specialists through traditional health plans or Employee Assistance Programs (EAPs).

Due to these challenges, evidence-based care is emerging as the solution to reduce stigma and deliver measurable outcomes. Employers are connecting employees to comprehensive mental health support that addresses critical needs.

Supporting Families’ Mental Health

The growing mental health crisis among children and parents has highlighted the need for family-focused benefits.

• 85% of HR leaders agree that mental health benefits for the entire family are essential.
• Yet, 82% report that employees struggle to find high-quality care for their families through EAPs.
• Employers are addressing this gap by expanding access to family mental health benefits. These programs help parents stay engaged at work while supporting their children’s well-being.

Combating Workplace Stress and Burnout

Workplace stress and burnout remain top concerns for HR leaders:

• 1 in 3 HR leaders identify burnout as the biggest mental health challenge.
• Common stressors include excessive workloads, managerial pressures, and workplace incivility.
• Managers are uniquely positioned to observe and address stress but lack adequate training and resources.

AI and Technology Revolutionizing Mental Health Care

• 83% of HR leaders believe AI will play a key role in improving mental health care.
• AI-powered platforms match employees with culturally responsive providers, improving outcomes and therapeutic relationships.
• Digital platforms and telehealth solutions expand access, enabling employees to receive high-quality care regardless of location.
  

Investing in Employee Mental Health

Mental health benefits are no longer optional, they are essential to a thriving workforce. Companies that prioritize mental health see improved employee engagement, reduced absenteeism, and stronger retention rates.

HR and benefits leaders should consider the following strategies:

• Expand access to family-focused mental health care.
• Invest in training managers to address workplace stress effectively.
• Partner with vendors that provide credible, evidence-based solutions.

The workplace mental health landscape is evolving rapidly. To stay competitive, organizations must prioritize mental health resources and work closely with benefits brokers who understand the latest trends and innovations. By addressing mental health challenges, companies can build a healthier, more productive workforce while maintaining long-term profitability.

Written by Connie Davis, Owner, PAC Consultants