Mental health is no longer an afterthought in U.S. workplaces. Thanks to a growing societal emphasis on protecting our emotional wellness, American employers are increasingly prioritizing more than just physical health.
This transition couldn’t come at a better time. According to recent research from Gallup, 58% of employees say they’re struggling with their overall work-life balance. Stress, burnout, and anxiety are hurting workers – and they’re looking for beyond-standard workplace benefits.
The stakes are clear for small businesses. Investing in mental health is a response to demand, but it’s also a way to build stronger, more productive teams. If you want to attract the top talent on the market, it’s time to look into mental health benefits.
In this blog, Terri Yurek’s team explores how mental health workplace plans are revolutionizing employee care. If you’re an SMB, pay attention: things are changing.
The Growing Need for Mental Health Support
Workers in 2025 want comprehensive insurance plans that address their emotional well-being alongside their physical health. But why? And should your business care?
Let’s talk about it.
The Cost of Ignoring Mental Health at Work
Mental health challenges might be private, but they impact both individuals and businesses.
Employees who struggle without support are less productive, take more sick days, and are more likely to leave their jobs. These issues create hidden costs for businesses, including reduced output and the expense of replacing team members.
Here are a couple of sobering statistics to consider:
- 1 in 5 adults in the U.S. experience a mental health issue each year.
- Work-related stress costs employers up to $300 billion annually in lost productivity and mistakes.
In short: supporting employees’ mental health isn’t just societally and culturally prudent. When you care for your workers’ minds, you also put your business first.
The Evolution of Workplace Health Plans
For decades, workplace health plans have prioritized physical health by covering needs such as doctor visits, surgeries, and preventive care. Although these are all vital elements of insurance plans, mental health has often been overlooked or included as an afterthought with limited coverage.
That reality is changing across most American companies.
Employers now recognize mental health as equally important. Inclusive plans that address both physical and emotional well-being are becoming the standard. This reflects a broader understanding of what it means to support employee health.
Trends Driving This Workplace Change
Several influential factors are accelerating the shift toward mental health-focused plans. These include:
1. Increased Awareness
Conversations about mental health conditions and care have become more open, driven by societal movements and greater public understanding. Employees now feel more comfortable advocating for their mental well-being.
2. Demand for Better Benefits
Workers, especially younger generations, are actively seeking jobs that offer robust mental health support. Employee benefit packages that lack this coverage can deter potential hires.
According to the National Alliance on Mental Health, the vast majority of employees (92%) say mental healthcare coverage is important to create a positive workplace culture. However, only about 60% say their employers offer mental healthcare coverage, which puts up to 40% of companies at a disadvantage when hiring.
3. Financial Value for Employers
Most companies realize that investing in mental health saves money in the long run.
The average employee experiencing mental distress uses more than $3,000 in healthcare services than their peers, and their cost of days lost averages around $4,783 (National Security Council). This is money that could be saved with proper mental health services and benefits in place.
These are just a few of the incentives to implement mental health benefit plans. Let’s talk about some of the other pros.
Reasons to Offer Employer Mental Health Benefit Plans
Benefit #1: Improved Productivity
As Psychology Today reports, employees who have access to mental health resources are often better equipped to manage stress, anxiety, and other challenges. With the right support, they can focus more effectively on their tasks and maintain consistent performance.
Businesses offering mental health benefits may also see a reduction in absenteeism, as employees are less likely to take time off for stress-related issues. Considering that mental health-related leaves of absence are up a staggering 300% from 2017, this is a real advantage for U.S. businesses to consider.
Benefit #2: Higher Job Satisfaction
Emotional support at work makes a significant difference in employee morale. When mental health needs are addressed, workers likely feel more valued and cared for, which can lead to higher job satisfaction.
According to research by Oxford University’s SaĂ¯d Business School, happier employees are more motivated, engaged, and likely to stay with the company. Retaining experienced team members also creates a more stable and positive work environment.
Benefit #3: Profit for Employers
As we touched on earlier, investing in mental health care plans in the workplace creates the potential for financial benefits. However, it’s not just that they’ll save money 一 they might also make more money.
As the counseling platform Talkspace shares, offering mental health support can increase job satisfaction and help businesses harness a competitive advantage. This allows them to attract and retain high-caliber talent, which can offer noteworthy, tangible ROI and opportunities to increase revenue.
Common Features of Mental Health Workplace Plans
Employer mental health plans focus on providing accessible, practical support to address emotional and mental challenges proactively. These features are becoming standard in many workplaces and are impacting how companies care for their teams.
Some of the most popular workplace plan features include:
Coverage for Therapy
Therapy is one of the most effective ways to address mental health challenges – yet cost has often been a barrier. Just last year, The New York Times reported that those who do start therapy often cannot afford to keep going.
Fortunately, many workplace health plans now include coverage for therapy sessions. This reduces the financial burden on employees and allows them to seek help from licensed therapists without worrying about out-of-pocket expenses.
Virtual Support Options
The rise of teletherapy and mental health apps has made mental health care more convenient and flexible. Employees can schedule virtual therapy sessions that fit into their busy lives, often without needing to leave their homes.
Covered apps may provide on-demand resources, such as guided meditations, stress management tools, and even chat-based counseling. These options make mental health support accessible to employees in any location, whether they work remotely or on-site.
Training for Managers
Managers play a significant role in supporting their teams, but many lack the tools to address mental health concerns. That’s why modern health plans often include training programs to help managers recognize signs of stress, anxiety, or burnout.
These programs teach leaders how to start supportive conversations and direct employees to the right resources. Educated managers can create a more compassionate workplace culture, helping employees feel understood and valued.
Mental Health Support: A Win-Win for All
Mental health conditions and challenges are often misunderstood. This leads to a stigma that prevents workers from seeking help.
In fact, the American Psychiatric Association estimates that more than half of people with mental illness don’t receive help for their disorders. Many people are worried about being treated differently or even losing their jobs or livelihoods due to prejudice or discrimination.
Businesses that include mental health resources in health plans work against this. They create an open and supportive culture amongst co-workers. When employees see their workplace as a safe space to discuss challenges, they’re more likely to seek the help they need.
Ultimately, mental health workplace health plans benefit everyone involved – employees, managers, and the company as a whole.
The Future of Workplace Mental Health Benefits
As we move into the new year, popular workplace benefits will likely include stress management and support programs, regular wellness checks, and tools like meditation apps or financial counseling. These resources aim to help employees address challenges early and maintain overall well-being.
If you’re interested in offering these kinds of aids to your employees, it’s time to talk to an experienced broker like Terri Yurek. Our job is to help you find affordable, balanced plans that meet your requirements and preferences.
Ready to Meet Your Business’s Mental Health Needs?
Mental health workplace plans are more than a passing trend. By supporting mental health services, U.S. employers have the potential to improve productivity, reduce costs, and create happier workplaces.
If you’re a small business in San Diego, turn to the team at Terri Yurek Insurance. We’ll help you explore Employee Assistance Programs (EAPs) that offer free and confidential assessments, short-term counseling, referrals, and follow-up services to employees  including group health plans that meet the unique needs of your workforce.
Contact us today to learn more and take the next step.