Why mental health is still being overlooked in the workplace

Writer: Mirella Franzese

October 2025 — Nearly 75% of U.S. workers experienced at least one symptom of a mental health condition in the past year. Yet most employers are ill-equipped to address this crisis, even as they acknowledge its impact on performance.

The results are clear: lower morale, teams suffering from higher rates of turnover, burnout, and depression, as well as struggles with attracting and recruiting talent in the midst of a national labor shortage. In a competitive market, lack of preparation doesn’t just mean lower performance or higher turnover — it means a measurable impact on returns.

“The workplace isn’t neutral in this story — 84% of workers say their work conditions directly contributed to a challenge,” mental health nonprofit One Mind’s chief strategy and growth officer Sarah Tol told Invest:. “So the workplace becomes one of the most critical systems where support must be delivered.”

While behavioral health is a top priority for more than half of American executives, just 1 in 4 organizations have a formal mental health strategy in place and few leaders actively participate in mental health initiatives, according to One Mind’s 2025 Mental Health at Work Index annual report. 

“There’s increased awareness from employers to do more to support the mental health of their employees, but as that interest grew, there was insufficient research on how to respond,” Tol told Invest:. “The leaders know it is important. They want to do it. The challenge is how to do it.” 

While 90% of U.S. businesses offer mental health benefits, most are critically underinvesting in prevention measures, such as creating a safe workplace environment. The report suggests employers are treating mental health symptoms once they arise through provisions such as access to therapy and community mental health teams, rather than creating protections and promotions that prevent harm in the first place.

“Employers are inundated daily with benefits, perks, and assistance programs, but they are not integrated. It’s hard to know what makes an impact directly on the employees,” added Tol.

This imbalance is more pronounced at small and midsize businesses. Although larger employers are able to provide better benefits and resources, smaller companies aren’t necessarily able to offer the same opportunities. According to Tol, this creates an equity gap in support, which, over time, can widen to threaten corporate performance.

Data from the Mental Health at Work Index clearly shows that organizations with superior mental health strategies are almost twice as likely to be recommended as a great place to work by employees, leading to voluntary turnover rates that are almost 50% lower. Additionally, employees who work at a company that supports their mental health are twice as likely to report “no burnout or depression,” as cited by Mind Share Partners.

Tol sees this as an opportunity to change the narrative surrounding behavioral health within corporations. 

“It’s this shift — from treatment to prevention — that defines the next phase of workplace mental health leadership. Balancing the employer-employee dynamic starts with recognizing that both have a shared stake in creating a healthy workplace.”

Managers, for one, play a pivotal role in this recalibration: “They’re not therapists, but they are connectors. They need to know how to listen, how to respond, and how to guide people to the right supports,” said Tol.

One Mind and SW/PA Coalition put together a Manager’s Checklist, which outlines fundamentals to promote behavioral well-being in the workplace. These include well-being activities, benefits reminders, regular check-ins regarding workload, and work-life balance.

These types of “well-being investments” solve critical gaps in hiring and retention, according to Ellen Kelsay, president and CEO of Business Group on Health. “By viewing these initiatives as having a direct impact on overall employee health, employers also boost workplace engagement, participant outcomes and business performance, among other benefits,” Kelsay told HR Drive.

However, mentally healthy workplaces are not just critical for employers and employees, but rather for driving long-term economic resilience, retention, and growth.

“In a shrinking labor pool, organizations that invest in well-being are the ones that will retain and attract the best people,” said Told. “In this time of uncertainty with the geopolitical environment, we need to maintain that sense of urgency around workplace mental health. We need to ensure that the attention doesn’t fade … by tying well-being directly to economic impact, we can help organizations to keep this on the leadership agenda.”

Want more? Read the Invest: reports.