Instant Insights / Mental Health Awareness Month

Employee mental health is becoming an important issue for employers, and one of the ways to help workers is through their employee benefits packages. Here we look at trends, build awareness, and share ideas for benefits managers and brokers.


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The number of employees medicated for anxiety and depression rise by 5.7 percent over an existing base rate of 5.2 percent when pay is based on performance–and up 8.9 percent for older workers. (Photo: Shutterstock)

Employers across the country have been putting a lot more thought into their compensation programs in recent years, partially responding to the more-competitive market for talent, but also to increasing pay transparency among workers. Many have landed on a pay-for-performance model, which seems logical enough–at first glance.

A first-of-its-kind study from researchers at Washington University in St. Louis and Aarhus University in Denmark, found that a company that switches to a pay-for-performance process (which includes things like bonuses, commissions, piece rates, profit sharing, individual and team goal achievements or some other configuration) will also see a rise in the number of employees using anxiety and depression medication.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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