When you think about mental health concerns in the workplace, you may immediately worry about managing signs of anxiety, stress, and depression. While valid, the No. 1 reason employees say it’s important for their employers to pay attention to mental well-being may surprise you: It affects their performance.

Compared to 13% of businesses, 40% of employees say that employers should be concerned about mental health due to the impact on productivity and performance, a 27-percentage point difference.¹

It makes sense. If someone isn’t feeling their best—physically or mentally—they can’t bring their best self to work.

“We don’t magically leave our personal lives at the door when we enter our workplace or set them entirely aside when we log on to work from another location,” says Kara Hoogensen, senior vice president of Benefits and Protection at Principal^®. “Employers are well-served to think about their team members as whole humans—people who will take care of business if the business takes care of them.”

As employee disengagement trends make headlines, better employee mental health could be one strong antidote. Here are three ideas to get started.

1. Provide financial tools and education.

Employers and employees agree that the top two contributors to worsening employee mental health are inflation/rising cost of living and concern about their personal financial situation.¹

Compared to business leaders themselves, employees are significantly more worried about inflation, rising interest rates, and a recession, according to the Principal Financial Well-Being Index^SM.²

Worry about money isn’t something employees can typically compartmentalize to non-working hours. Financially stressed employees are six times more likely to have troubled relationships with coworkers and are three times less likely to stay with their current employer.³

This means financial stress is not only bad for workplace culture but retention as well.

Providing the building blocks to a sturdy financial foundation—livable, competitive wages and access to benefits—is the first step. When it comes to workplace benefits for their financial security, employees have three clear winners: health care, retirement, and paid vacation. Dental/vision and life insurance round out their top five.²

Beyond providing access to a benefits program, resources and education are key to helping employees get the most out of their money and benefits. A financial wellness program can help do this work for you, with most employees seeking help to save more and pay down or avoid costly debt.³

2. Offer workplace mental health benefits.

Employee mental health isn't all on you. Providing an avenue to professional, affordable resources and care is essential in helping to promote employee mental health and well-being. It’s also the No. 2 benefit workers want their employers to add this year.¹

An employee assistance program (EAP), one common offering, provides a vast array of confidential services—from stress management coaching to substance use treatment to grief support—typically at no cost to the individual. Services are available by phone or online and often are included with some types of benefit coverages (e.g., disability or life insurance) at little-to-no additional cost.

"Be proactive about describing what an EAP is and what resources are available, Hoogensen says. “And stress the confidentiality of EAPs. It's not just about a crisis, but about the normal work-life stressors we all face, too.”

From there, consider how easily an employee could get more substantial therapy or treatment and how much it would cost under their health insurance options.

Clearing a path to mental health services not only saves precious (work) hours that employees would spend searching for a covered provider taking new clients but also demonstrates that you care about them holistically.

"Our employers are woven into our everyday lives. If someone has a death in the family, for example, who they work for and how they were treated during that time will stick with them."

Kara Hoogensen, senior vice president of Benefits and Protection

 

¹ Principal survey of small and midsize businesses (fewer than 500 employees), including 250 businesses and 250 employees, Jan. 25–Feb. 5, 2023.

² The Principal Financial Well-Being Index^SM (Feb. 2–9, 2023) surveyed 500 business owners, decision makers, and leaders at companies with 2–10,000 employees and 200 full-time employees.

³ Inside the wallets of working Americans, The 4th Annual Report from Salary Finance, 2022.

⁴Principal Financial Well-Being Index℠, July 2022.

This article is intended to be educational in nature and is not intended to be taken as a recommendation.