Toolkit: Creating a Mental-Health-Friendly Workplace
Discover actionable strategies and resources for creating a mental-health-friendly workplace. Learn how to support employees, ensure compliance, and foster well-being with expert guidance, tools, and tips.
Abraham Lincoln. Billie Eilish. Dwayne "The Rock" Johnson. Buzz Aldrin. Jimi Hendrix. Jane Pauley. Barbara Streisand. Michael Phelps. Selena Gomez. Simone Biles.
These are just a few well-known, highly successful individuals who have lived with or are living with mental illness. The value of their work is immeasurable and not defined by their conditions. With support and understanding from employers, individuals with mental health conditions can thrive in the workplace.
Mental health has emerged as one of the critical issues of our time and has only been compounded by current events, with anxiety on the rise in 2025. A 2024 SHRM survey of U.S. workers found 44% are burned out from their work, while a 2023 report from the U.S. Department of Health and Human Services indicated that 76% of U.S. workers reported experiencing at least one symptom of a mental health condition. And supporting the mental health of five generations that comprise today's workforce requires more than a "one size fits all" approach.
This toolkit offers an overview of key concepts and considerations related to mental health in the workplace and offers strategies and resources for employers to better understand and support the mental health of their employees.
HR Pros and Workplace Mental Health
In this Honest HR podcast, host Wendy Fong and Marjorie Morrison, SHRM’s new executive in residence for mental health, discuss how HR can support employees going through mental health challenges while maintaining healthy boundaries for themselves.
Understanding Mental Health
Many people will fluctuate on the milder end of the mental health spectrum due to the normal challenges of life, while others will fluctuate or stabilize within the range of mental illness. Most will be able to work successfully, especially when mental health is understood and supported by their employer.
Mental Health Versus Mental Illness
The terms are often used interchangeably, but poor mental health and mental illness are not the same thing:
The Centers for Disease Control and Prevention (CDC) website states: “A person can experience poor mental health and not be diagnosed with a mental illness. Likewise, a person diagnosed with a mental illness can experience periods of physical, mental, and social well-being.
The National Institute of Mental Health (NIMH) defines a mental illness as a mental, behavioral or emotional disorder. A serious mental illness is one that results in serious functional impairment that substantially interferes with or limits one or more major life activities.
According to the Substance Abuse and Mental Health Services Administration (SAMHSA), 23% of U.S. adults experience mental illness each year and other studies show that most individuals will experience some degree of mental illness during their lifetime.
Pro Tip
While some mental illnesses are debilitating and significantly interfere with daily activities, many are minor and even undiagnosed. Regardless, all employees can benefit from mental health support in the workplace.
Benefits of Investing in Mental Health
Failure to support employees' mental health weighs heavily not only on the employees themselves, but also on an organization's bottom line.
Investing in workplace mental health and wellness:
- Increases retention, recruitment and productivity.
- Lowers absenteeism, disability leave and medical costs.
- Reduces employee-related risks and potential liabilities.
SHRM research has found that work’s impact on mental health shapes employee engagement and retention. Within organizations that have successfully supported mental health, 43% of workers experienced positive mental health effects due to their job, compared to 14% of workers who experienced negative mental health effects.
In a 2022 report by SHRM, SHRM Foundation, and Otsuka, 94% of HR professionals believed that offering mental health resources can improve the overall health of employees, 88% said these benefits can increase productivity, and 86% opined that these resources can improve employee retention.
Untreated mental illness will contribute $16 trillion in lost output by 2030, while depression alone costs an estimated $200 million in lost work days annually, as noted by the SHRM Foundation in the business case for investing in mental health. However, every $1 investment in promoting mental health has a $3 – $5 return.
Legal and Compliance Considerations
HR is responsible for ensuring that any employer sponsored health plan is in compliance with federal laws regarding mental health coverage.
The federal laws include:
Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA): Requires large group health plans to apply the same payment and restriction rules to mental health and substance use disorder benefits and services as it does medical or surgical benefits.
Affordable Care Act: Requires coverage of mental health and substance use disorder services as one of ten essential health benefit categories in non-grandfathered individual and small group plans. Over the years, the rules and guidelines have evolved.
Consolidated Appropriations Act, 2021: Beginning in 2021, plan sponsors must conduct an analysis of their health plan's treatment limitations and provide this information to the Department of Labor (DOL) or the Department of Health and Human Services upon request. Plans must document that mental health and medical coverage limits apply equally.
Pro Tip
The DOL provides an online self-compliance tool that consists of questions and examples to help plan administrators assess whether their plans are in compliance with various requirements, including rules relating to medical management standards, pre-authorization, and coverage exclusions and limits.
The 4 A’s of a Mental-Health-Friendly Workplace
EARN has created a downloadable PDF checklist for mentally healthy workplaces with several actionable implementation strategies for each pillar of mental health.
Build Awareness and a Supportive Culture
Proven strategies for building a mentally healthy workplace include educating workers on mental health issues and taking actions to foster a supportive workplace culture.
Organizations can take the lead in overcoming the stigma of seeking treatment for mental illness. Through education and advocacy, employers can ensure that employees know the symptoms and causes of mental illness and how to access mental health services. Employees should be encouraged to seek mental health help just as they would seek treatment for physical illnesses or injuries.
Thirty percent of U.S. workers would take a pay cut to receive better support for their mental health at work, according to a SHRM 2024 survey of U.S. workers. Additionally, workers feel pressured to prioritize work over their mental health, with 20% curtailing their careers to protect it, while 49% of managers feel pressured to prioritize the organization's wellbeing over that of the people they manage.
A September 2021 survey of working Americans by SHRM found that 26% of workers hid their mental health struggles from their supervisor. However, when their supervisor was aware that the employee was experiencing mental health issues, the most common responses from the supervisor were to:
- Demonstrate empathy.
- Encourage the employee to take time off.
- Adjust the employee's workload.
- Offer remote or flexible work options.
The SHRM Foundation workplace mental health initiative is leading the charge toward transformational change, offering a Mental Health in Your Workplace field guide assessment and strategy tool to guide HR leaders in thinking through important questions from assessment and implementation to measurement and impact, as well as a workplace mental health ally certificate.
Training supervisors and managers on ways to support employee mental health, the legal obligation to accommodate disabilities, and how to prohibit discrimination and retaliation is essential.
In this Honest HR podcast, Marjorie Morrison, SHRM’s executive in residence for mental health, is joined by Tamla Oates-Forney, CEO of SHRM Linkage, to dive into strategies for HR professionals to support women’s mental health as part of creating an inclusive workplace culture.
Pro Tip
The Job Accommodation Network (JAN), a service of the U.S. Department of Labor’s Office of Disability Employment Policy, provides a list of workplace mental health awareness training programs employers can access and use in their organizations, including the National Council for Mental Wellbeing's Mental Health First Aid at Work.
SHRM Foundation Resources
Provide Accommodations
Mental illness can often rise to the level of a disability under the Americans with Disabilities Act (ADA) and thereby require employers to make accommodations for workers with such conditions according to the EEOC enforcement guidance.
To have employment protection under the ADA, a person with a physical or psychiatric condition must meet two criteria.
- Be qualified for the job. A qualified employee or applicant is one who, with or without reasonable accommodation for a disability, can perform the essential functions of the job in question.
- Have a disability as defined by the law. The ADA does not list medical conditions that constitute disabilities; instead, it has a general definition of disability. According to the ADA, a person has a disability if he or she meets one of the following criteria:
- Has a physical or mental impairment that substantially limits a major life activity (such as walking, talking, seeing, hearing, learning or operation of a major bodily function)
- Has a history of such an impairment (such as cancer that is in remission).
- Is regarded as having such an impairment (even if the individual does not have such an impairment).
While much has improved for people with disabilities, stigma in the workplace, particularly for individuals with mental illness, remains. Providing reasonable accommodations when they are needed is one way to combat that stigma.
A few examples of accommodations that have been found to help employees with mental health impairments perform their jobs more effectively include:
- Remote work or telecommuting or adjustment in work hours.
- Sick leave, or flexible use of vacation leave, including unpaid leave, for reasons related to mental health.
- Workspace modifications related to noise, light, or other distractions.
- Recording devices for recording meetings/training sessions.
- Division of large assignments into smaller tasks and goals.
- Additional assistance or time for orientation activities, training, and learning job tasks and new responsibilities.
Have questions about employee accommodations?
Pro Tip
The Job Accommodation Network (JAN) has compiled a considerable amount of information on various methods of accommodating employees with mental health conditions.
Focus on Inclusion
Want to ensure your I&D strategies are in compliance with the executive orders? Consider getting the SHRM Inclusive Workplace Culture Specialty Credential. It helps you foster a workplace where inclusion and diversity drive success with the SHRM Inclusive Workplace Culture Specialty Credential.
Offer Employee Assistance
Examples of accommodations: Employer Assistance and Resource Network on Disability Inclusion (EARN) examples of accommodations include:
- Fitness programs to improve employees' physical health, which in turn promotes positive mental health.
- Stress management training to develop relaxation, mindfulness and resiliency skills to manage workplace stressors and enhance mental well-being.
- Work environments that connect with the outside world through natural light, plants, etc., and provide a versatile, flexible range of spaces.
- Employer-sponsored awareness-building and anti-stigma campaigns.
Employee assistance programs (EAPs): Many employers also offer (EAPs) designed to identify and assist employees in resolving personal problems (e.g., marital, financial or emotional problems; family issues; substance/alcohol abuse). However, utilization remains low.
EAP services may include assessments of employees' needs and referrals for diagnosis and treatment of mental health, substance use or other issues. Educational and wellness programs, such as programs informing employees about healthy weight, stress management and smoking cessation, are also staples of many EAPs.
This Honest HR podcast offers actionable insights on how to manage burnout with Deidre Gestrin, Founder at Abundant Wellness Essentials, Wellness Consultant, Author, and Trainer.
Pro Tip
Forbes offers a rundown of 6 popular mental health apps for the workplace along with steps to take to encourage employee use.
Ensure Access to Treatment
Job-protected leave: Employers covered by the Family and Medical Leave Act (FMLA) should inform individuals with mental health conditions about the availability of job-protected time off from work to seek medical treatment. Time away from work for mental health treatment is often covered under the FMLA.
While time off from work can be provided as an accommodation under the ADA, the FMLA provides an employee with additional job and benefit protection and reinstatement rights. Leave that qualifies for protection under both the ADA and the FMLA can run concurrently.
Workplace practices: Employers can also implement practices to remove barriers, reduce stigmas and encourage individuals to seek treatment for mental illness. The Center for Workplace Mental Health provides a Working Well toolkit to assist employers in fostering a workplace that promotes, supports and improves the mental health of employees and their families. Examples from the Working Well toolkit include the following:
- Regularly provide information about mental health issues and employee benefits to reduce the stigma sometimes associated with seeking help for mental health problems.
- Provide access to valid mental health screening tools.
- Give employees easy access to mental health support and care (e.g., an EAP).
- Provide high-quality outpatient and inpatient coverage for mental health treatment, as well as easily understood descriptions about how to access care, when needed.
- Cover effective prescription medications for mental health conditions at a level that encourages their appropriate regular use.
- Encourage mental health and stress management through a comprehensive wellness and health promotion program.
- Provide training to managers on conflict resolution and management skills to reduce excessive workplace stress.
WEBINAR
Avoiding FMLA Mistakes: A Knowledge Challenge
Test your knowledge of the most common FMLA mistakes and learn how to avoid them.
Balancing Employee Well-Being with Organizational Standards
Changes in an employee's behavior, mood or performance may reflect any number of things, including personal difficulties, job dissatisfaction, or physical or mental health conditions that may require treatment.
While anxiety is the number one mental health issue, the signs aren't always obvious. Asking open-ended questions can encourage an employee to request support or accommodation, but it is not the employer's job to probe into an employee's personal life, diagnose a problem or act as the employee's counselor, as noted by the Harvard Business Review.
When having conversations with employees about mental health issues, three helpful things to remember are:
- Have some prepared questions about workplace mental health in your back pocket.
- Protecting your and your team's boundaries does not prevent meaningful discussions about mental health.
- The most important thing is to show up.
Employees with mental health conditions may be disruptive or erratic or may have difficulty controlling their emotions. Employers should clarify to all employees the behaviors that are inappropriate in the workplace and the consequences for engaging in those behaviors.
If an employee's behavior at work becomes a problem, talk to the person privately about how this is impacting the workplace. Focus on the behavior, and do not label the person.
Example: Do not say, "You are disrespectful." Instead, say, "You are behaving in a disrespectful way" and give examples.
If the employee brings up a health-related factor, ask open-ended questions to encourage the individual to request support or accommodation.
- Example: How can we support you in changing these behaviors?
The employer's involvement does not end with one meeting. HR or a supervisor should follow up with the employee regularly. If the employee's performance has not shown any improvement after the designated period, and he or she has not requested accommodation or leave, considering disciplinary action may be appropriate at that point. If the situation is serious enough that termination of employment is imminent, being clear and documenting the meeting as a performance-related issue is important.
Pro Tip
When a performance-related problem occurs, it remains a performance issue even if the cause is related to the employee's disability. It is not discrimination to approach an employee with a mental health condition to discuss the issue.
Expert Advice
Visit the SHRM Mental Health Hub for the latest news and expert insights on mental health in the workplace as well as resources for employers.
Check out these upcoming live as well as on-demand webinars.
WEBINAR
Thriving Together: A Candid Conversation on the Future of Mental Health at Work
SHRM President and CEO Johnny C. Taylor, Jr. and SHRM Mental Health Executive in Residence Marjorie Morrison hold a powerful, no-holds-barred Q&A on the future of mental wellness at work.
WEBINAR
Building Stronger Workplaces: Empathy, Safety, and Boundaries
Marjorie Morrison, SHRM Mental Health Executive in Residence, explores the essentials of emotionally intelligent leadership: lead with empathy, create psychologically safe workspaces, and model healthy boundaries to prevent burnout.
WEBINAR
Navigating Life Transitions: How HR Leaders Can Support Employee Mental Health
Designed specifically for HR leaders, learn actionable strategies to recognize signs of stress, address employee needs during transitions, and implement policies to promote resilience.
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Women, Whole Health, and the Workplace: A Mental Health Awareness Month Conversation
A special virtual event featuring renowned psychologist Dr. Julie Smith, journalist and New York Times bestselling author Jennifer Wallace, and Calm Mindfulness Coach Mel Mah.
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How the World’s Best Companies Drive Engagement - Market Review of All EAPs
Stephen Sokoler, Founder & CEO of Journey, and Mike Clementi, former Global CHRO of Unilever, lead a high-impact discussion on the future of mental health benefits.
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Delivering Mental Health Benefits that Work for Every Employee
Hear from the restaurant industry experts at bartaco and Headspace as they share strategies and success stories to help you create a mental health benefit that meets your workforce’s needs.