Mental health in the workplace is no longer a personal issue tucked away in therapy sessions. It’s an urgent workplace issue. Recent studies show that around 64% of employees are struggling with a mental health diagnosis. But it goes beyond diagnoses—over 80% of workers report that job-related stress impacts their overall mental well-being.

This isn’t a fringe concern. Mental health-related absences jumped 33% in 2023, marking a 300% increase from 2017. Burnout, workplace stress, and psychological safety are not just HR buzzwords—they’re bottom-line issues. A staggering 91% of employees say their mental health affects their performance, and nearly 60% report moderate to severe burnout.

And trust in leadership? That’s slipping fast. Only 48% of employees believe their employer cares about them, down from 59% two years prior. The erosion of psychological safety is fueling disengagement, absenteeism, and turnover.

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Why Is This Mental Health Crisis Happening?

Workplace stress is surging. Increased workloads, poor flexibility, and lack of leadership support all play a role. But the damage runs deeper—it’s cultural. The emotional impact of a toxic or indifferent workplace hits harder than most leaders realize.

Here’s the kicker: 70% of employees say their manager affects their mental health more than their doctor or therapist. The role of leadership in employee mental health cannot be overstated. A supervisor’s influence is on par with a life partner.

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The Business Cost of Poor Employee Mental Health

Let’s drop the idea that this is just an HR concern. Employee mental health impacts productivity, engagement, and retention. Burnout leads to quiet quitting. Disengagement tanks performance. A mentally unwell workforce can’t drive innovation or meet goals.

Organizations that fail to invest in workplace well-being are gambling with revenue, reputation, and workforce stability. Leaders must stop treating mental health like a “nice-to-have” and start addressing it as the strategic issue it is.

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What Mental Health Conditions Look Like at Work

Mental health issues aren’t always obvious. Leaders need to understand how these conditions show up in the workplace:

Anxiety Disorders (~19% of U.S. adults)

• Difficulty concentrating
• Constant worry
• Avoidance behavior
• Irritability
• Perfectionism

Personality Disorders (~9%)

• Excessive absenteeism
• Conflict with coworkers
• Erratic behavior
• Frequent complaints or grievances

Mood Disorders (~20%)

• Persistent sadness
• Low energy
• Drop in productivity
• Substance misuse

Psychotic Disorders (~1%)

• Hallucinations or delusions
• Disorganized communication
• Social withdrawal

Recognizing symptoms is only the first step. Taking meaningful action to support employee mental health is the real game-changer.

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What Employers Can Do to Support Employee Mental Health

1. Normalize the Conversation

• Discuss mental health in team meetings
• Encourage leadership vulnerability
• Educate teams to reduce stigma

2. Offer Mental Health Resources

• Provide Employee Assistance Programs (EAPs)
• Promote mental health apps like Calm, Headspace, and Sanvello
• Create internal peer support networks

3. Monitor Workload and Burnout

• Watch for signs of stress or performance decline
• Balance workloads strategically
• Allow flexible work schedules and sufficient time off

4. Build Psychological Safety

• Hold regular 1:1s and check-ins
• Encourage open feedback without fear
• Avoid punitive responses to mental health disclosures

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Final Thoughts: Make Mental Health a Business Priority

Mental health isn’t a passing HR trend. It’s foundational to team performance, retention, and business success. Ignoring it isn’t just risky—it’s expensive.

Organizations that embrace a mental health-first culture will thrive. Those that don’t will struggle with turnover, stagnation, and disengagement.

This series will continue with upcoming posts on legal compliance, leadership development, and actionable tools to support your team’s mental health.

Want to learn more right now? Watch this recent webinar from the HR experts at MP.

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