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Abstract: This article examines the importance of addressing mental health in the workplace. It discusses how poor mental health negatively impacts both employees and organizations through increased absenteeism, lower productivity, and higher costs. The article emphasizes the need for organizations to create a culture of psychological safety where employees feel comfortable discussing mental health openly without fear of stigma or reprisal. It outlines strategies for developing comprehensive mental health initiatives, including training, support resources, and flexible policies. The article also highlights the critical role of empathetic leadership in advocating for mental health and driving cultural change. By prioritizing employee well-being, the article argues that organizations can enhance performance, retention, and create a more inclusive, thriving workplace culture.
Mental health and well-being have increasingly become important issues in society and the workplace in recent years. However, discussing mental health openly in an organizational context remains a challenge. The stigma surrounding mental illness persists, resulting in shame and fear that prevents employees from seeking help or support. This is problematic for both individuals and their employers. By prioritizing mental health in the workplace through transparent communication, a psychologically safe culture, and relevant programs and policies, organizations can help mitigate stigma, support their people, and improve performance and results.
Today we will discuss mental health at work through a review of current research and practical recommendations for organizational leaders. By strategically addressing mental health, organizations can foster greater inclusion, productivity and human potential while positively affecting lives.
The Impact of Poor Mental Health on Individuals and Businesses
Mental illness represents a significant societal burden, affecting approximately one in five adults globally each year (World Health Organization, 2017). The personal cost of untreated or poorly managed conditions such as depression, anxiety and substance use disorders on individuals and their families can be immense. However, poor mental health also presents substantial economic challenges for employers.
Research shows that mental health issues in the workplace result in increased absenteeism, decreased productivity, higher medical costs, and greater risks of injury or accident (Organization for Economic Co-operation and Development [OECD], 2014). It is estimated that unaddressed mental health problems cost the global economy over $1 trillion per year in lost productivity (World Economic Forum, 2018).
The impacts fall disproportionately on small and medium-sized businesses without dedicated human resources functions. A survey of Canadian employers found mental health-related lost productivity costs small firms (1-99 employees) over $200,000 annually on average (Mental Health Commission of Canada, n.d.).
At the individual level, employees struggling with untreated mental illness also face higher risks of unemployment, lower earnings over career, and poorer physical health and well-being long-term (OECD, 2014). This takes a heavy toll not only economically but on quality of life. Failed transitions back to work after mental health leaves further strain individuals and support systems.
Clearly, poor mental health negatively affects both employers and employees. While the challenges are complex with no single solution, organizations that prioritize well-being gain significant advantages in performance, recruitment/retention and establishing a progressive culture where all can thrive.
Establishing a Culture of Psychological Safety and Open Discussion
A foundational step for organizations addressing mental health is building an environment where employees feel safe to openly discuss challenges without fear of stigma or reprisal. This requires leadership commitment to developing psychological safety -- the belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns or mistakes (Amy Edmondson, 1999).
Leaders play a key role in modeling openness and emphasizing that struggles do not define worth or abilities. They must clearly communicate that disclosing a mental illness will not impact roles, opportunities or relationships negatively. And they should avoid language or behavior that perpetuates stigma, such as referring to conditions as "crazy" or using mental health as an insult.
Some strategies for cultivating psychological safety include:
Initiating small group or one-on-one check-ins to engage in transparent discussions
Publicly sharing real leadership experiences with mental health to normalize issues
Providing impartial ombudspersons for confidential guidance and advocacy
Protecting privacy but enabling voluntary self-identification for support access
Ensuring no reprisal for disclosures via anti-stigma policies and practical support
Organizations like Stanford University have trained all employees as "mental health first aiders" to recognize signs, offer initial support, and guide to professional help (DePaulo, 2019). Such efforts demonstrate cultural prioritization while empowering employees to support one another.
Overall, open communication built on trust and understanding provides foundations to more deeply engage mental health challenges and make relevant assistance available organization-wide.
Developing Tangible Initiatives and Resources to Promote Well-Being
With psychological safety established, proactive organizations implement tailored programs and resources focused on education, prevention and support services. Effective initiatives aim to build resilience across all stages -- from workplace factors affecting mental health, to building coping skills, to early intervention, treatment access, and return-to-work planning.
Program areas may include:
Mental health literacy training to recognize signs, have compassionate conversations, and guide to resources.
Stress and resilience workshops teaching relaxation techniques, optimism skills, mindfulness practices.
Manager training on legal responsibilities, reasonable accommodation, effective support strategies.
EAP counseling and referral services available 24/7 via phone, online, or on-site visits.
Mental health days as paid sick days that can be used specifically for mental wellness.
Gradual return-to-work plans to safely reintegrate employees post-illness or treatment.
Peer support networks enabling employees helping each other.
Mental health-focused intranet resources sharing information, testimonials, and community.
Industry leaders implementing robust, compassionate mental health programs include Google, which offers on-site counseling, global mental health first aid training, and open discussions on mental wellness (The Washington Post, 2018). Microsoft Canada provides mental health training and coaches, and has reduced depression-related short-term disability costs by 30% since 2014. Their Global Diversity and Inclusion team works to "create a culture where each person feels empowered to bring their whole selves to work" (Microsoft, 2020).
With tailored, multi-faceted initiatives attuned to employee needs, organizations demonstrate mental health as a business priority alongside physical safety or financial wellness.
Leading with Empathy and Commitment to Mental Health Advocacy
For any organizational mental health strategy to take root, leadership must authentically articulate why well-being matters through personal testimony and advocacy. Their tone sets the culture, so leaders need strong interpersonal skills -- particularly empathy, active listening and compassion -- to effectively engage employees on this sensitive issue.
Senior leaders might openly share their own mental health experiences or those of loved ones to encourage broader disclosure with dignity. Some openly share long-term management of conditions like anxiety or depression to normalize issues, improve understanding and empower others.
As advocates, leaders also increase external awareness and support. They can incorporate mental health metrics within environmental, social and governance reporting to demonstrate the business case holistically. And they can use industry standing to influence policy and reduce stigma societally alongside internal efforts.
Small actions like participating in conferences, sponsoring community programs or charities, and joining coalitions also help amplify messages of care, acceptance and hope. Simply declaring beliefs publicly that mental well-being enhances quality of life for all makes a difference.
With transparency, empathy and advocacy, leaders demonstrate genuine care for employee welfare beyond performative statements. Authentic connection and shared humanity are integral for mental health initiatives to gain trust and deliver lasting benefit across careers and the broader community.
Conclusion
As research finds connections between mental wellness, diversity, creativity and organizational performance, addressing mental health has become essential for the modern, progressive workplace. By fostering a culture of open communication and implementing multi-faceted, compassionate strategies, organizations demonstrate care for their people and a commitment to human potential.
While progress is being made, more work remains to reduce stigma, enhance accessibility of treatment and support healthy transitions. With leadership advocating change and role-modeling empathy, mental health will continue advancing as a business imperative and a shared community responsibility. Overall, by prioritizing psychological and emotional needs, organizations empower lives for greater productivity, resilience and fulfillment.
With continued progress in reducing stigma, enhancing accessibility of services and supporting employee resilience, mental health will be increasingly recognized as integral to workplace culture, performance and quality of life both within and beyond organizations.
References
Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative science quarterly, 350-383.
DePaulo, J. (2019, October 14). More companies are training all employees on mental health. Here's why. CNBC.
Microsoft. (2020, January 20). Fostering mental well-being in the workplace. Microsoft Stories.
Mental Health Commission of Canada. (n.d.). The economic case for investing in work-related mental health strategies.
Organization for Economic Co-operation and Development. (2014). Mental health and work: Canada. OECD Publishing.
The Washington Post. (2018, September 25). Google takes mental health days seriously. Here's why other companies should too. The Washington Post.
World Economic Forum. (2018, October 10). We need to talk more about mental health at work. Here are three ways we can destigmatize it. World Economic Forum.
World Health Organization. (2017, August). Mental health: Strengthening our response.
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2025). We Need to Talk More About Mental Health at Work. Human Capital Leadership Review, 17(4). doi.org/10.70175/hclreview.2020.17.4.2
