Ultimate Guide to Mental Health Benefits for Employees

• 75% of workers faced mental health challenges last year, leading to productivity loss and costing the global economy billions.
• Mental health wellbeing programs can improve productivity by 15–25% and offer a £5 return for every £1 spent.
• Yet, only 13% of employees feel comfortable discussing mental health at work, and 81% struggle with stress but don’t use available resources.

Key Takeaways:

1. Common Benefits: Therapy coverage, mental health days, apps, flexible work policies.
2. Implementation Steps: Employee surveys, budget planning, manager training, and clear communication.
3. Measure Success: Track participation, health outcomes, and ROI to refine programs.

Actionable Insight: Start by assessing employee needs, train managers, and communicate benefits effectively to close the gap between availability and usage.

Mental Health Benefits Basics

Definition and Scope

Mental health benefits are designed to support employees' psychological wellbeing. Once considered optional, these benefits are now a standard part of many workplaces, with 89% of organisations offering coverage.

These benefits typically address several areas, including:

• Therapy and counselling services
• Digital tools and mental health apps
• Workplace policies promoting mental wellbeing
• Programmes focused on prevention and early intervention - including mindfulness and movement

Despite the availability of these resources in many businesses, there’s a significant gap in usage. While 81% of employees report struggling with anxiety and stress, only 19% take advantage of the care provided.

Common Benefit Options

Modern mental health benefits packages include a variety of options to meet diverse employee needs.

"Employees in good mental health are more focused, creative, and less prone to absenteeism. In addition, robust mental health support also fosters a more inclusive and supportive workplace culture that enhances employee retention and attracts top talent."

Here are some of the most common offerings and their adoption rates:

• Employee assistance programmes such as confidential counselling and referrals - Standard offering
• Mental health days - Less than 20% of employers
• Therapy coverage (in-person and virtual services) - 89% of organisations
• Digital wellness tools - Growing rapidly
• Flexible work arrangements - Growing

4 Main Parts of Mental Health Programmes

Effective mental health programmes in the workplace typically include four key elements.

Employee Assistance Programmes (EAPs)

EAPs are a cornerstone of workplace mental health initiatives. EAPs provide a range of services, such as:

• Short-term counselling (usually 3–10 sessions)
• Crisis intervention
• Referrals for substance abuse treatment
• Financial and legal counselling
• Support for childcare and eldercare needs

For every £1 spent on EAPs, organisations see a return of £5-£10. However, with utilisation rates often under 10%, companies need to actively promote these programmes to ensure employees take advantage of them.

Therapy Benefits

Offering therapy benefits is a critical part of supporting employees' mental health. Research shows that 37% of employees feel that employer-provided mental health resources improve the workplace environment.

To make therapy benefits effective, companies should:

• Cover both in-person and virtual therapy options
• Offer a diverse network of mental health professionals
• Provide flexible scheduling to reduce access barriers
• Ensure strict confidentiality to build trust
• Include specialised treatment options when necessary

Employees who don't use available mental health resources often face signifiantly higher absence through ill health than those who do.

Mental Health Apps and Tools

Digital tools complement traditional mental health care by addressing common barriers like cost, access, and stigma. Here are some key insights:

• Prescriptions for anti-adepressants has risen 43% in the last decade.
• Nearly 70% of users actively engage with apps that include features like mood tracking and journaling.
• Gamification in apps can increase employee motivation by up to 80%.

"Apps can be most helpful when it comes to mitigating three key barriers to mental health care - cost, access and stigma." - LuAnn Heinen, vice president with the Business Group on Health.

Work Policies for Mental Health

Supportive workplace policies are essential for creating an environment where mental well-being is prioritised. Companies can implement policies like:

• Mental Health Days: Separate from regular sick leave, these encourage employees to focus on self-care.
• Remote Work Options: Flexible work arrangements help reduce stress and improve work-life balance.
• Manager Training: Supervisors should learn to identify mental health challenges, guide employees to resources, and maintain confidentiality.

The Impact of Work Policies on Mental Health

• Mental health days provide time for psychological recovery and help improve job performance.
• Flexible scheduling accommodates therapy appointments resulting in higher resource utilisation.
• Manager education strengthens support capabilities which improves team outcomes.
• Clear communication reduces stigma around mental health and increases programme engagement.

How to Set Up Mental Health Benefits

A surprising 67% of workers either don't know about or have limited awareness of their company's mental health resources.

Employee Needs Survey

Anonymous surveys are a great way to gather honest feedback about the challenges employees face and the kind of support they need.

"Understanding utilisation, employee stressors, and obstacles through surveys, focus groups, or one-on-one interviews will ensure that benefits reflect employee needs and are more likely to be embraced."

Here’s how you can structure your survey:

• Identify key stress factors and understand how job pressure and personal issues affect mental health.
• Assess knowledge of benefits to understand programme familiarity and usage barriers.
• Obtain support preferences to learn preferred therapy formats and scheduling needs.
• Uncover implementation hurdles to understand rime constraints, stigma concerns and technical issues.

Once you understand employee needs, you can move on to setting a budget and selecting the right provider to address these challenges effectively.

Budget and Provider Selection

It’s important to choose solutions that are both impactful and sustainable. Here’s what to look for:

• Comprehensive Coverage: Support for clinical needs, short-term care, and self-guided options.
• Quality Metrics: Check provider credentials, success rates, and pricing transparency.
• Implementation Support: Opt for providers that offer clear guidance during setup and ongoing assistance.

"When it comes to pricing, you want a solution that will produce meaningful mental health improvements for your team while being sustainable for you in the long run."

The right provider can make a big difference in creating a more supportive workplace, which in turn boosts productivity.

Employee Communication Plan

After selecting a provider, the next step is to ensure employees understand and engage with the benefits. Research shows that 50% of workers don’t fully grasp their benefits, 80% rarely read benefits-related communications, yet employees are 101% more likely to trust their employer when benefits are clearly explained.

To improve engagement, use a multi-channel communication strategy:

• Multi-Channel Outreach: Share information through emails, intranet updates, and team meetings.
• Personalised Messaging: Tailor messages to different employee groups.
• Feedback Mechanisms: Regularly collect feedback through surveys and discussions.

Manager Mental Health Training

Managers play a key role in supporting their teams. Equip them with the tools they need through training programmes that cover:

1. Identifying signs of distress
2. Understanding benefits and referrals
3. Techniques for supportive dialogue
4. Professional limits and confidentiality

"Managers must know exactly how to support their team without becoming clinicians or therapists."

These training sessions should focus on creating a safe environment while maintaining professional boundaries.

Tracking Program Success

Keeping an eye on mental health programmes is crucial to ensure they deliver value. Research indicates that organisations prioritising employee wellbeing experience 11 percentage points lower turnover compared to those with minimal efforts in this area Tracking these programs not only confirms their effectiveness but also identifies areas for improvement.

Success Metrics

Key performance indicators (KPIs) are essential for assessing how well your mental health programs are working. Focus on metrics like participation, health outcomes, employee experience, and service delivery. Here's a breakdown:

• Participation: Usage rates and engagement levels
• Health outcomes: Absenteeism rates and private medical premiums
• Employee Experience: Satisfaction scores and reported stress levels

Mental health-related missed workdays cost UK businesses £51 billion annually.

ROI Measurement

Investing in mental health programs can yield impressive returns.

1. Track Direct Savings

Monitor reductions in absenteeism and track the impact on Private Medical Premiums.

2. Measure Productivity Gains

Managing depression alone can recover up to 14.6 million workdays, cutting missed workdays by 60%. Track productivity improvements through reduced absenteeism, better performance, and enhanced team collaboration.

3. Evaluate Retention Impact

With about 20% of employees leaving jobs due to mental health concerns, improving retention can lead to substantial cost savings. Calculate retention rates by dividing the number of remaining employees by the initial headcount and multiplying by 100.

Alongside these quantitative measures, make it a priority to gather employee feedback for a well-rounded evaluation.

Employee Input Methods

Regular input from employees is key to refining mental health programs. Use these methods to collect actionable insights:

• Anonymous surveys to gauge stress levels and overall satisfaction. Run surveys periodically to track employee sentiment.
• Focus groups to identify common concerns and preferences. Bring together diverse groups for detailed discussions.
• Usage analytics to analyse service utilisation trends. Review data to spot patterns and address barriers.
• Manager reports to gain team-level insights. Encourage managers to share observations about team wellbeing.

These tools help ensure your programmes remain relevant and effective.

Next Steps

Now that you’ve established tracking strategies and evaluated your current benefits, it’s time to take action. Investing in mental health programs pays off - research shows a £5 return for every £1 spent.

The focus now shifts to putting plans into motion and refining them over time. Start by conducting an employee needs assessment through surveys or focus groups.

Here’s how to prioritise your next steps:

• Evaluate Current Benefits and Fill Gaps
• Train Managers to Provide Support
• Build a Communication Plan

Keep in mind that success requires ongoing effort. With 86% of employers identifying workplace mental health as a priority, your commitment to these programs not only supports employees but also strengthens your organisation.