How Employers Are Widening the Definition of Mental Health Benefits

Watch this related "quick tip" from our executive in residence for mental health:

How Benefits Impact Mental Well-Being

In general, benefits offerings are known to improve employee mental health. 

For instance, a study by a Northeastern University researcher found a significant association between paid vacation leave and lower rates of depression in women. Specifically, for every 10 additional days of paid leave, the rates of depression decreased by 29%. And employer-provided parental leave may help protect mothers’ mental health in the months after childbirth, according to a separate study in The Lancet.  

“Incorporating a variety of benefits that tap into different areas of well-being will help boost employee happiness levels, and ultimately, can lead to more engaged employees with higher productivity,” said Tiffany McGowen, senior executive vice president of HR and talent acquisition at software company Paycom in Oklahoma City.

For that reason, having mental health be a focus in most benefits offerings is an evolution that makes sense, many experts say, as a variety of benefits take aim at specific stressors employees go through — fertility benefits for help conceiving, for example, or menopause support. 

Other benefits, such as paid time off, flexible schedules, and financial well-being programs, can have ongoing mental health advantages.

Take financial wellness offerings. In response to high costs of living and soaring financial stress, more employers have begun offering financial counseling, budgeting tools, emergency savings funds, and other assistance. 

Those offerings can not only make a difference to employees’ financial well-being, but also to their mental well-being. Roughly 19% of working Americans reported depression tied to financial problems, especially during the pandemic (rising to 52% among unemployed individuals), SHRM data found. A FinFit survey found that about 60% of respondents said they experience stress and anxiety when thinking about their finances. Several organizations that offer financial benefits say they improve their employees’ mental health in addition to improving their financial literacy and helping them better budget and prepare for unexpected expenses.

While Paycom offers specific mental health benefits, including meditation spaces and a $0 co-pay for in-network mental health services, McGowen said other offerings, including access to full-time well-being advisers and an automated payroll experience, which allows employees to track their pay cycles, “has been a driver in reducing financial stress — which has a significant influence on mental health.” 

Those benefits also have a substantial impact on Paycom at large, driving rates of retention, productivity, and engagement.

Caregiving and child care support are other growing areas of strain and stress for employees. Benefits that offer help with these are increasingly being touted as ways to improve employees’ mental health.  

“We know that most workers — nearly 3 in 4 — are juggling some form of caregiving, and that caregiving responsibilities are linked to stress and burnout,” Burke said. “That means care benefits aren’t niche, but foundational. These supports reach a wide and diverse portion of the workforce and go far beyond helping with child or senior care.”

Focusing on benefits to help working parents can help employees’ mental health, said Megan Schulte, vice president of human resources at herbs and spices company Frontier Co-op. The company offers an onsite child care center that costs just $2-$3 an hour per child for employees at its headquarters in Norway, Iowa. It also offers subsidized offsite child care and reimbursement options for employees.  

“It’s really, really impactful,” said Schulte, who uses the onsite center for her three children. The assistance, she said, allows employees at Frontier to easily juggle personal and work responsibilities and not have to worry about finding quality, convenient, or affordable child care — historically an issue for parents and a common reason why parents, especially mothers, leave the workforce.

“For any parents, child care can be a huge stressor logistically and financially, as accessible and affordable options are difficult to come by,” Schulte said. “So, by providing a menu of options for our employees, they can identify and select what works best for them and their families. We know that provides them a sense of security and ease that allows them to show up more fully at work.”

In short, “all of our employee benefits programs, including our child care program, are designed to support the overall holistic well-being of our team.”

Getting Employees Comfortable with Mental Health 

The strategy of touting benefits that aren’t traditional mental health benefits but still can help improve employees’ emotional well-being is commonly used to get people “in the door” regarding their mental health, said Sarah Gunderson, senior consultant of clinical consulting at consulting firm Segal in Austin, Texas.

“Leading with wellness-oriented benefits — like financial support services or child care-finding services — allows users to get comfortable with less intimidating services,” she said.  

Companies that proactively promote well-being and mental health — through programs and benefits, culture, and attitudes — likely have employees who feel more comfortable prioritizing their own mental health and using therapy and other benefits.

“As a participant is using these services, they’ll be reminded of the mental health support that is available to them,” Gunderson said.

Going Beyond One-Size-Fits-All

The mental health landscape has evolved in the past several years, prompted by the pandemic and a growing number of employees — particularly younger ones — being open about the struggles they go through and the help they are looking for. 

“I think in the past, employers have thought about their employees through a strictly professional lens,” Burke said. “Over the last several years though, especially post-pandemic, employers have started to see and consider all the different aspects of an employee’s life and lived experience that affect how the employee is able to show up at work. Because of that, they’ve realized it’s only prudent to approach their support of employees from a more holistic perspective and try to identify and break down whatever barriers or challenges they face — both personally and professionally —to help them achieve greater success.”

Supporting employee mental health through a variety of benefits is just part of that evolution. 

“Well-being is multifaceted, which means a one-size-fits-all approach will not sufficiently address the diverse needs of today’s modern workforce,” McGowen said.  

Research from insurer The Hartford found that, when asked how their employer could help them build resilience, in addition to mental health benefits, employees said employers could provide benefits such as flexible work schedules, new or improved reward and recognition programs, learning and development opportunities, and financial help.

Although mental health has become a key part of other benefits, it doesn’t mean there still isn’t a need for traditional mental health benefits. Specific benefits that help reduce employee stress need to be offered along with robust mental health benefits, such as therapy, apps, and other resources, experts said.

“Benefits managers need to prioritize comprehensive, ongoing mental health support,” McGowen said. “High-impact initiatives can include telehealth mental health services, privacy pods to take those appointments, and regular sessions to have human conversations. Smaller, one-off programming will have less of an impact and can be forgettable.”

Essentially, mental health needs to be at the core of the workplace experience, experts said. 

“In moments of need, having someone carry the weight alongside you can make all the difference,” Burke said.