As businesses operate in an increasingly complex and fast-paced environment, prioritizing employee mental wellness has become a critical component for ensuring long-term success.
What was once considered a supplementary benefit, mental health support is now recognized as an essential factor driving productivity, creativity, and overall business performance. To reap these benefits, companies must implement change effectively.
Nathan Shearman, director of therapy and training at Red Umbrella, emphasizes that “mental wellness is no longer something businesses can afford to overlook; it’s a core element of a healthy, sustainable workplace. Prioritizing mental health isn’t just about supporting employees – it’s about driving the success of the entire organization.”
Historically, mental wellness has often been deprioritized in favor of other business needs, but companies are now realizing that their employees’ mental health directly influences key outcomes such as productivity, engagement, and retention.
Shearman elaborates: “When employees are stressed or burnt out, their productivity and creativity decline. Concentration suffers, decision-making is impaired, and mental fog sets in – all of which directly affect the bottom line.”
Prolonged stress can eventually lead to burnout, which causes extreme fatigue and impairs an employee’s ability to engage with their work. This can result in increased absenteeism and challenges with re-engagement upon return.
“We’re seeing more and more that employees are unwilling to stay with companies that don’t actively address mental wellness,” says Shearman. “This isn’t just about retaining current talent; it’s also about attracting new talent. In today’s job market, candidates seek employers who understand the importance of mental health.”
The implications of stress and burnout extend beyond retention. Employee burnout also significantly impacts recruitment costs. “High turnover creates a substantial drain on resources,” Shearman states. “Recruiting and training new employees is expensive, and the cycle worsens when staff disengage due to lack of support. This is why investing in mental health initiatives is essential for maintaining a skilled and engaged workforce.”
Contrary to some perceptions, businesses that invest in mental health support do see a tangible return on investment. A study by Deloitte reveals that the ROI for mental health interventions is approximately five to eight times the initial investment.
“The misconception is that mental health services are expensive, but the real cost lies in failing to provide support,” Shearman adds. “The return on investment is clear: improved engagement, reduced absenteeism, and a more loyal, productive workforce.”
A critical yet often overlooked aspect of mental wellness in the workplace is Employee Assistance Programs (EAPs). While many businesses offer these services, uptake remains low—typically around 3-5%. This is often due to a lack of customization in these programs to address specific organizational needs.
Shearman stresses, “Mental health needs vary in each organization, and offering generic resources will not produce meaningful results. Understanding what employees need and tailoring support to those requirements is crucial.”
Additionally, the stigma surrounding mental health continues to discourage employees from seeking help, despite one in six people facing mental health challenges each week.
Shearman explains, “The key to increasing engagement with EAPs is reducing the stigma around mental health. Effective mental health training not only empowers employees to seek help when needed but also fosters a culture of support. This approach leads to increased usage of EAP services, maximizing the return on investment in these programs.”
For businesses aiming to remain competitive in today’s workplace, prioritizing employee mental wellness is no longer optional. Shearman concludes, “When businesses invest in their employees’ mental health, they are investing in their own sustainability. A healthy, engaged workforce is key to long-term success. Supporting employee mental wellness should be a top priority for any business that wants to thrive in the modern world.”
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