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There has been much discussion about mental health in the workplace in recent years, particularly amid pandemic lockdowns, return-to-office mandates, widespread layoffs and an ongoing wage war. Although working has many mental health benefits — a paycheck, a sense of purpose, socialization and daily structure — not every worker is of sound mind. A lack of support and respect can lead to tension among co-workers and reduce performance.
Companies have an opportunity — and an obligation — to provide a healthy, safe working environment to improve workers’ mental health outcomes. However, they must first understand the root cause of their stress, anxiety and depression.
Job insecurity
Since the pandemic, layoffs have hit the technology industry particularly hard. In 2023, 262,682 people lost their jobs at 1,186 tech businesses, with Amazon leading with 27,410 layoffs. Sadly, the workforce isn’t in the clear. According to the independent tracking startup Layoffs.fyi, 89,333 people from 306 brands have been let go from their tech jobs so far in 2024.
With potential job insecurity comes high anxiety about not having a paycheck and needing to restart the job hunt. High stress could be distracting at work, especially if an enterprise’s messaging to staff is not transparent.
Lack of work-life balance
All businesses require a high-performing staff to attain the company’s mission and goals. However, employees may be mandated to work longer hours with little personal time in small and medium-sized establishments. Job stress and burnout could cause poor performance and low productivity.
In today’s corporate landscape, work-life balance is no longer a luxury — it’s a demand. Yet, some have been slow to make progress. Employees have lives outside of their jobs, with priorities for family, taking care of themselves and pursuing personal interests. In one study, participants rated family and health as 25% more important in their work-life balance.
Work-life balance also allows workers to seek therapy. Per President Biden’s 2023 fiscal year budget, health insurance providers must provide three behavioral health services annually without out-of-pocket expenses.
Limited growth opportunities
Most workers — especially those in hourly roles — are eager to climb the career ladder. Few opportunities for professional development are among the top reasons why staff have poor mental health in the workplace. They also drive job dissatisfaction and high turnover.
A McKinsey report found 79% of employees want job growth, while 75% value upskilling. Another 73% want leaders who encourage and support job progression. With cutting-edge technology developments and changing workplace needs, offering learning opportunities to keep skills current benefits the worker and the brand at large.
Toxic workplace culture
From April to September 2021, 24 million workers left their jobs in the Great Resignation. Surveys further suggested a toxic workplace culture attributed to a 10.4 times higher likelihood for attrition — higher than job pay.
A toxic working environment could stem from bullying, gossip, harassment and discrimination, causing anxiety, depression and burnout. These behaviors also influence job engagement and hinder employees’ sense of security.
Little support for diversity, equality and inclusion especially affects the mental health of people of color, workers with disabilities, and those within the LGBTQ+ community. For instance, numerous employer health plans continue excluding gender-affirming care for transgender workers despite it going against Title VII of the Civil Rights Act of 1964. Adverse treatment could make them feel unsupported and unwelcome.
How poor mental health affects businesses
When employees feel stressed or depressed, it can be bad for business. The World Health Organization says the economy loses 12 billion working days annually because of poor mental health, reducing productivity significantly.
According to the American Psychological Association’s 2023 Work in America Survey, 92% of workers say it’s essential for their company to support their psychological health. Another 95% say they want it to respect their boundaries for work-life balance. The survey also revealed workplace stress is at an all-time high, with 31% of people feeling emotionally exhausted and 23% wanting to quit.
Workers may be less inclined to discuss their mental health problems at work for fear of judgment or punishment. Therefore, the organization is responsible for fostering a workplace supporting its employees’ wellbeing.
Developing behaviors health initiatives at work
When developing mental health initiatives for staff, corporate leaders should consider the following:
- Instilling a sense of safety and belonging
- Delivering flexibility for better work-life balance
- Offering robust diversity and inclusion with employee input
- Providing career learning opportunities and career growth
- Guaranteeing dignity, purpose and autonomy
- Fostering connection between team members
Determine what factors impact your employees’ mental health the most, then dig into the areas of improvement.
Mental health matters in the workplace
The business world has undergone significant changes in the last five years. Now more than ever, workers need companies to support their emotional wellbeing to deliver exemplary work performance and productivity. As such, leaders should prioritize their staff’s mental health to reap the rewards.
