Mental health is a fundamental human experience that can’t be separated from the workplace. In fact, 1 in 5 US adults will experience mental illness each year. When employees feel mentally supported, they’re healthier, more engaged, and ultimately more productive. Investing in mental health isn’t just a compassionate choice, it’s a strategic one.

Studies show that depression and anxiety cost the global economy around $1 trillion annually in lost productivity. And in the US, a 2022 study estimates that workers with fair or poor mental health cost the economy $47.6 billion annually. When mental health is left unsupported, it doesn’t just hurt individuals — it impacts teams and entire organizations. Conversely, when HR leaders prioritize mental wellbeing , the benefits ripple throughout the company, leading to a more resilient and thriving workforce.

For HR leaders, understanding and addressing mental health is crucial for fostering a workplace where every employee feels supported and valued. Below, we share practical strategies you can incorporate and share at your organization to create an environment that promotes wellbeing and productivity.

Crafting a Healthy Work Environment

Employee mental health is profoundly influenced by the work environment. Factors like high pressure, worrying about losing their job, not having much control over their work, and not having support from others can increase stress levels. Over a third of Gen Z and millennial workers who regularly feel anxious or stressed say their job is a key factor. So, what can organizations do to foster a healthier work environment? The first step is to build a foundation.

Encourage open and empathetic conversations

Organizations need to foster an environment where employees feel comfortable discussing mental health without fear of stigma. This involves promoting open, stigma-free conversations and ensuring they are met with understanding and action.

Promote work-life balance

It’s essential to prioritize work-life balance through equitable policies. Flexible hours, remote work options, and adequate leave can go a long way. When employees feel their wellbeing is prioritized, their engagement and productivity follow suit. In a global study of 23,000 respondents, “good work/life balance” was selected as the top reason that Gen Z employees (25%) and millennials (31%) chose their organization. Followed by “learning and development opportunities” and “high salary or other financial benefits.”

Prepare Managers to Be More Empathetic and Supportive of Mental Health in the Workplace

Managers are often the first point of contact when employees face mental health challenges. This makes it crucial for them to be well-trained in not just recognizing the signs of distress, but also in responding effectively and empathetically. HR and benefits leaders can equip managers with the tools to support their team meaningfully, fostering a work environment that values mental wellbeing. This proactive approach helps to enhance productivity, reduce turnover, and cultivate a resilient workforce ready to tackle both personal and professional challenges

Give your managers the tools and training they need to support their teams in the following ways:

1. Understand how to recognize and acknowledge signs of distress

Managers should pay attention to noticeable changes in an employee’s mood, behavior, or productivity. Create an inclusive environment where these signs are acknowledged, setting the stage for proactive support and intervention.

2. Conduct regular check-ins

Ensure managers regularly ask employees how they’re doing with questions like, “How’s it going today?” or “Is there any way I can support you?” These routine check-ins can open the door to deeper and more meaningful conversations about their wellbeing.

3. Practice empathetic communication

Managers can use empathetic communication by starting with observations. For example, saying, “I’ve noticed you seem more stressed than usual,” can be less confrontational and more supportive. They should also listen actively and validate feelings with responses like, “It sounds like you’re going through a lot. Thank you for sharing.”

4. Guide employees to resources

Train your managers to be well versed in each of the benefits available to employees. Their understanding of what they are, how to access them, and how they can be beneficial helps managers make meaningful and relevant recommendations to their teams (see relevant support resources below).

Recommended Mental Health Resources

Access to diverse support resources is a critical component in building a supportive workplace. In Sequoia’s 2024 Benefits Benchmarking Report, Enterprise Edition, 97% of respondents offer an Employee Assistance Program (EAP).

While an EAP is a standard offering in providing access to mental health support and work-life referrals, a growing number of companies are offering meditation apps and enhanced EAP solutions to increase access to providers and minimize time waiting for their first appointment. Suggested resources include:

Professional care: Coaching, counseling, therapy, and medical support.

Self-led care: Exercise, nutrition, and mindfulness practices play a part in overall well-being.

Community support: Managers, team collaborations, and HR involvement are crucial for a robust support system.

Emergency resources: Quick access to crisis support lines like 911 or the 988 Suicide & Crisis Lifeline.

How Sequoia Can Help

Sequoia’s Benefits Advisory team is ready to help you build a supportive workplace at your organization with the right self-care tool and professional care resources for your organization Connect with a team member today by completing this inquiry form.

Shannon Arens — Shannon is a Senior Wellbeing Strategist at Sequoia, specializing in market insights, industry trends, and strategic initiatives to enhance employee wellbeing for clients. With a keen eye on the ever-changing wellbeing landscape, Shannon is focused on helping employers prioritize what will best address the needs of their people. Outside of work, Shannon enjoys spending quality time with family, staying active through exercise, and connecting with friends.