What Can Companies Do to Help Employees with Mental Health?

Work today is faster, busier, and more demanding than ever. Deadlines pile up, emails keep coming, and the pressure to keep up can feel nonstop. In this hustle, mental health often takes a back seat—until it can’t anymore. When someone’s struggling mentally, it’s not just their problem—it’s everyone’s problem at work.

Think about it: someone dealing with burnout or stress isn’t performing at their best. Deadlines slip, communication gets strained, and team dynamics suffer. Left unaddressed, stress spreads, creating a culture where everyone is running on empty. That’s no way to run a business—or to keep employees happy.

Why Companies Need to Take Mental Health Seriously

Ignoring mental health has significant costs for individuals and organizations. Studies show that poor mental health can lead to lower productivity, higher absenteeism, and increased turnover. Employees struggling with mental health issues often require more time off, have lower engagement levels, and may even leave the company altogether. These challenges hurt morale and increase workload pressures on coworkers, creating a ripple effect that can damage team dynamics and overall business performance.

Mental health challenges are not limited to any one industry or job role. They can affect anyone, from entry-level employees to executives, and they often go unnoticed until they manifest in visible issues like declining performance or workplace conflicts. Proactively addressing mental health is not only the right thing to do for employees, but it’s also a critical business strategy for long-term success.

So, what can companies actually do to help? Here are some ways to support your team and create a workplace where everyone can thrive.

Start the Conversation About Mental Health

Mental health must be part of workplace discussions. The stigma around it is often the biggest barrier to progress. Employees need to feel comfortable sharing their struggles, and companies must create an environment where that’s possible.

Train managers to recognize when employees might be struggling and teach them how to approach conversations with empathy. Managers don’t need to be therapists, but they do need to listen and provide support. Leadership can set the tone by opening up about their own experiences, which helps normalize these discussions. When employees see leaders openly discussing their challenges and seeking help, it creates a culture of acceptance and understanding.

Offering spaces like anonymous surveys or casual check-ins can also give employees a chance to share concerns in a safe environment. Building trust is essential, as employees need to feel assured that discussing mental health won’t negatively impact their career or relationships at work.

Offer Access to Mental Health Resources

Encouraging employees to seek help only works if resources are available. Companies can provide Employee Assistance Programs (EAPs) that offer counseling, financial advice, and other critical support at little or no cost to employees. These programs can be a lifeline for workers dealing with stress, anxiety, or personal issues that affect their professional lives.

Ensure health insurance plans cover mental health services such as therapy, counseling, and psychiatric care. Beyond traditional healthcare, wellness apps like Calm, Headspace, or BetterHelp can provide convenient, on-demand support for managing stress and building mindfulness. Investing in these tools signals to employees that their well-being is a priority.

It’s crucial to communicate clearly about these resources and make them easily accessible. Many employees are unaware of the benefits their company offers, so regular reminders and easy-to-navigate portals can help bridge the gap. Managers should also encourage employees to use these resources without fear of stigma or judgment.

Employers Should Embrace Flexibility

Life is unpredictable, and sometimes employees need breathing room. Flexible work options can make a huge difference for mental health. This might include allowing hybrid or remote work, offering flexible hours to accommodate different productivity peaks, or providing mental health days for employees to recharge.

Flexible work arrangements recognize that employees have responsibilities outside the office. Whether it’s caring for children, managing personal health, or simply needing time to decompress, flexibility helps employees balance their work and personal lives more effectively. This approach not only reduces stress but also boosts engagement and loyalty, as employees feel valued and trusted.

For companies hesitant to implement flexibility, consider piloting programs to assess their impact. The data often shows improved productivity and morale when employees have more control over their schedules.

Build Should Build a Supportive Culture

A mentally healthy workplace requires intentional effort. Recognizing achievements—big or small—boosts morale and makes employees feel valued. A simple “great job” or public acknowledgment of contributions can go a long way in building a positive work environment.

Promoting work-life balance by respecting boundaries, such as avoiding after-hours emails, also plays a significant role. Employees need time to recharge and focus on their personal lives without the constant pressure of being “on.” Additionally, offering stress management workshops or tools can help employees build resilience and manage challenges more effectively.

Consider hosting regular wellness events, such as yoga sessions, mindfulness training, or team-building retreats, to foster a sense of community and well-being. When employees feel supported and connected to their peers, they’re more likely to thrive both personally and professionally.

Lead by Example

Leadership sets the tone for workplace culture. When leaders take time off, set healthy boundaries, and openly discuss mental health, they signal that prioritizing well-being is not only acceptable but encouraged. Employees are more likely to follow suit when they see management practicing what they preach.

Leaders should model healthy behaviors, such as taking breaks, using vacation days, and seeking help when needed. By showing vulnerability and sharing their own experiences (without oversharing), leaders can help break down the stigma surrounding mental health.

Things to Avoid When Helping Employees with Mental Health

Avoid quick fixes that look good on paper but don’t make a real impact. Offering a single wellness workshop or day off isn’t enough; mental health requires ongoing attention. Similarly, one-size-fits-all solutions rarely work. Tailor your approach to the unique needs of your team, and listen to employee feedback. Most importantly, take action based on what they share.

Another pitfall is ignoring the root causes of workplace stress. If employees consistently feel overworked or undervalued, surface-level solutions like wellness apps won’t solve the problem. Addressing systemic issues, such as workload distribution and toxic behaviors, is essential for creating lasting change.

The Bottom Line

Prioritizing mental health isn’t just about being a good company—it’s about being a smart company. Supported, mentally healthy employees are more engaged, motivated, and loyal, which is good for business. Companies that invest in mental health create environments where employees can thrive, leading to higher productivity, better retention, and a stronger organizational culture.

At Alloy Employer Services, we specialize in helping companies build healthier, more productive workplaces. Whether you need help developing mental health strategies or improving company culture, we’re here to support you.

Contact us today to create a workplace where mental health truly matters.