A man with his head lowered shattering showing mental health issues.

From technological evolution to economic uncertainty, the world is changing at a pace never seen before – and understandably, people are more stressed as a response. A 2024 poll from the American Psychiatric Association found that U.S. adults are feeling increasingly anxious, with 43% of adults reporting feeling more anxious than the previous year. What’s more, a staggering 84% of US workers reported that workplace conditions have contributed to at least one mental health challenge, underscoring the urgent need for employers to address workplace stress. This rising trend in anxiety, both in and outside the workplace, highlights the urgent need for HR managers to offer effective mental health support and stress management strategies.

Supporting mental health in the workplace isn’t a “nice to have,” but a necessity in today’s environment, especially if businesses want to increase retention, engagement and performance. Businesses should take comprehensive actions to minimize stress and support employees navigating the modern workplace by focusing on managerial support, fostering a positive workplace culture and providing comprehensive employee benefits.

The business toll of workplace stress

With stress on the rise, and work-related triggers playing a prevalent role, employers are smart to take proactive measures to address what is within their control. Recent studies show that 32% of today’s employees frequently experience stress at work, with 25% suffering from full-on burnout. External factors, such as the rising cost of living, are exacerbating stress, according to 47% of employees. And the unfortunate reality is that the business costs can be great. In fact, half (51%) of employees are more likely to take a sick day for mental health reasons than for physical illness.

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Anxiety and stress can manifest in the workplace in various ways, including decreased productivity, increased absenteeism, and higher turnover rates. Employees experiencing high levels of stress may find it challenging to concentrate, make decisions, or meet deadlines. This can lead to a decline in the quality of work and overall team performance. Additionally, stress can contribute to physical health issues such as headaches, fatigue, and weakened immune systems, further impacting an employee's overall wellbeing and ability to perform their job effectively.

While offering generous PTO packages or expanded healthcare benefits can help support positive change, creating a flexible and compassionate working environment can also go a long way in reducing stress for employees. Whether it's taking a personal call, stepping out to pick up kids from school, or working from home while the plumber is over, recognizing that life and work can coexist can relieve employees of the stress that comes with trying to keep them separate.

The crucial role of managers

One of the first steps to reducing stress in the workplace is ensuring that employees have a support system from a foundational level. Managers in particular can be pivotal in supporting employee mental health, often serving as the first point of contact for employees experiencing stress or burnout. Providing mental health training for managers can help them identify and support employees going through challenging times, and share awareness of available resources.

Managers should also focus on cultivating meaningful relationships with their team members. This can help build a trusting relationship where employees feel comfortable sharing how they’re feeling both inside and outside of the workplace, without fear of judgment. By taking the time to understand the unique challenges and stressors that each team member faces, managers can provide more effective support and guidance. Encouraging leaders who lead with compassion and empathy not only fosters a positive work environment but also encourages open communication and mutual respect.

Managers can also make sure they are properly recognizing employee accomplishments and achievements. This can cultivate a culture of appreciation, allowing employees to find meaning in their workplaces and feel seen and celebrated for their contributions. According to one report, employees with more control over their work, such as job autonomy and flexibility, feel more appreciated compared to those with less control. Employees seek clear expectations, fair workload distribution, and recognition for their efforts. Cultivating a culture of appreciation where employees feel valued by their peers and managers can reduce burnout and motivate employees to consistently perform at their best.

Building a culture of wellbeing

In addition to managerial support, fostering a positive workplace culture is crucial for supporting mental health and overall wellbeing. Encouraging practices like mindfulness and relaxation techniques can provide employees with strategies to manage stress and maintain mental clarity. Providing resources or workshops on these techniques can be beneficial, and create a more open dialogue about mental health. Additionally, organizing team-building activities and social events can strengthen relationships among employees and create a sense of community. A supportive network at work can be a great buffer against stress, and can help employees feel comfortable speaking up when they need help.

Work-life balance is an important aspect of fostering a positive culture. Employers can support this by offering flexible work arrangements, such as remote work options, flexible hours, and generous leave policies. Encouraging employees to take breaks and use their vacation time can also help prevent burnout and promote overall wellbeing.

Benefits that make a difference

Though employers can’t control external factors like the economy, they can provide resources that can be tailored to each individual's specific needs. Offering wellness and adequate mental health programs can help employees manage stress, improve their overall wellbeing, and create a supportive environment where they feel comfortable discussing these issues and seeking help.

Including mental health services in health insurance plans can make it easier for employees to access the care they need. One survey found that 90% of employees stated that mental health benefits were important to them, though only 35% had them. Coverage for therapy, counseling, and psychiatric services should be comprehensive and easily accessible, especially considering their importance to employees. Other programs such as confidential counseling services, and mental health condition resources, can also be valuable for employees seeking help.

Most importantly, employers should actively listen to employee feedback about what truly matters to them, to help inform which benefits to offer. After all, 50% of employees believe that a company that prioritizes wellbeing is more important than a 10% pay raise.

Moving forward with support

Supporting employee mental health is more than an ‘extra benefit,’ but a strategic imperative in today's ever-evolving work environment. Stress Awareness Month serves as a reminder that our workforce is juggling a lot of challenges, from tech changes to economic fluctuations. Creating a flexible, empathetic workplace, offering mental health resources that resonate, and training managers to be mental health champions can make a world of difference to an employee's day-to-day life. By making wellbeing a top priority, we can boost retention, performance, and cultivate a more engaged and resilient workforce. Let's build workplaces where mental health matters, and employees feel empowered to thrive both mentally and professionally.

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Alex Powell

Alex is a highly experienced employee engagement consultant, trainer and speaker. For over 15 years she has helped HR and business leaders implement strategies that drive true culture change. Her wealth of knowledge comes from coaching and training thousands of managers from a wide range of industries across the globe. Alex focuses on providing organizations with proven practices that drive results for varied leadership styles and the multiple generations in the modern workforce. Her presentation will leave you motivated and better equipped to lead your organization on a path to a more engaged workforce, making the world a better place to work.