Mental Health at Work: The new talent magnet
- alexanderlaugomer1
- 6 days ago
- 11 min read
Updated: 40 minutes ago
Once just a side conversation, mental health is now front and center in corporate discussions. The pandemic, coupled with the "Great Resignation," reshaped priorities—employees today demand work environments that protect their well-being, not just their paychecks.
In boardrooms and HR meetings worldwide, a new refrain is echoing: mental health is mission-critical. Not long ago, discussions of employee well-being were peripheral – today they’re taking center stage. The reason is simple: a workforce increasingly prioritizes mental health, and they’re gravitating toward employers who do the same. The COVID-19 pandemic and the ensuing “Great Resignation” made it clear that employees are no longer willing to sacrifice mental wellness for a paycheck.
In fact, as of early 2022 nearly 44% of workers were actively job-hunting, driven in part by the pursuit of better work-life balance and mental health support.
This marks a profound shift in what people value at work. Modern professionals – especially younger generations – are openly voicing that mental health isn’t a mere personal issue; it’s a workplace priority. Consider this: about half of millennials and an astounding 75% of Gen Z workers have left a job for mental health reasons.
Overall, more than half of employees who quit or plan to quit cite poor mental health as a significant factor in their decision. When 61% of job leavers say mental health drove them away, employers have no choice but to sit up and listen.
Forward-thinking companies have noticed that supporting mental well-being isn’t just altruism – it’s become a strategic imperative for attracting and retaining top talent.
The Workforce’s New Priority: Mental health at work
Employee expectations have evolved rapidly in recent years, placing mental health high on the list of what people want from their jobs. Surveys confirm what many HR leaders have sensed anecdotally: workers are actively seeking out employers that value mental wellness.
A recent workforce study found that 84% of employees consider “robust and comprehensive” mental health benefits an important factor when evaluating a new job opportunity.
In other words, the majority of today’s talent pool won’t even consider an employer that lacks substantive mental health support. This trend cuts across industries and regions. High stress levels and burnout are driving people to demand change.
Nearly half of employees globally say their well-being declined in 2022, with 28% calling themselves “miserable” at work. After experiencing the isolation, anxiety, and exhaustion of recent years, workers have become far more conscious of their mental health needs. Companies are beginning to respond: 81% of workplaces have increased their focus on employee mental health since the pandemic began. Yet there’s a gap – about one in three employees still feel workplace mental health support is inadequate.
The message is clear: employees want more. They are gravitating toward employers who openly champion mental well-being through benefits, culture, and policies. In this new talent landscape, mental health support isn’t a “nice-to-have” – it’s a magnet for talent. Companies that recognize this are gaining a competitive edge in recruitment and retention.
Why mental health support drives retention and performance
Prioritizing mental health has concrete payoffs in employee retention and productivity. Stressed or emotionally unwell employees are far more likely to disengage or leave.
In a U.K. survey, 89% of employees with mental health issues said those struggles negatively impact their work life, and over half had contemplated resigning as a result. Globally, the pattern holds: when work hurts mental health, people ultimately vote with their feet.
Deloitte’s research during the Great Resignation revealed that 61% of employees who left (or planned to leave) their job did so in part because of poor mental health. www2.deloitte.com
For HR leaders focused on retention, these numbers are a flashing red warning – or rather, an invitation to improve. If workers don’t feel safe, supported, and healthy, they will seek out employers where they do. On the flip side, a company known for caring about well-being becomes a talent magnet that attracts loyal, engaged people.
Supporting mental health also boosts performance on the job. Numerous studies link well-being with productivity. Content and supported employees bring their best selves to work – in fact, happy employees are about 13% more productive on average.
When anxiety, depression, or burnout are left unchecked, it’s not only morale that suffers – output and innovation do too.
The World Health Organization estimates that depression and anxiety disorders cost the global economy around $1 trillion in lost productivity each year.
That staggering figure comes from an even more sobering fact: roughly 12 billion workdays are lost annually due to these common mental health conditions. Put simply, when employees are mentally unwell, businesses pay the price in absenteeism, errors, lower output, and lost institutional knowledge when people quit.
On the other hand, a mentally healthy workforce is more resilient, creative, and productive. By addressing burnout and psychological distress, employers can unlock the full potential of their people.
As one Harvard Business Review analysis succinctly noted, hundreds of millions of workdays are lost to mental health each year while nearly 60% of employees have never even discussed their mental health at work
Companies that break this silence and foster a supportive environment stand to gain a more loyal and high-performing team.
The high cost of ignoring employee mental health
What happens if organizations ignore this call and continue with business as usual? The data paints a stark picture: the cost of neglecting employee mental health is enormous – both in human terms and financially. Employers that turn a blind eye to burnout, stress, and psychological well-being face higher turnover, more absenteeism, and lower productivity, all of which hit the bottom line.
Consider employee turnover alone: when a talented individual leaves because of chronic stress or a toxic culture, the company loses an experienced contributor and must spend time and money to hire and train a replacement. These costs add up.
In the U.K., for example, the annual cost of staff turnover due to mental health issues jumped from £8.6 billion in 2019 to £22.4 billion in 2021 – a 160% increase in just two years.
This surge coincided with the pandemic’s toll on workers’ well-being, illustrating how quickly the “ignore it and it will go away” approach backfires. It’s not just the U.K.; worldwide, untreated workplace mental health problems are driving expenses through the roof.
Poor mental health doesn’t only cause people to quit – it also leads to “quiet quitting” on the job. Employees who are burnt out or depressed often show up but perform poorly, a phenomenon known as presenteeism.
They might be physically at their desks, but their productivity and engagement are severely diminished. Studies in Britain calculated that presenteeism due to mental health costs employers far more than absenteeism – on the order of tens of billions of pounds a year.
Add to that the direct cost of sick leave: in one survey, 28% of all employee sick days were attributed to mental health conditions. The total business impact is staggering. For instance, a recent analysis estimated £56 billion lost annually in the U.K. from workplace mental health issues (a 25% increase since 2019).
In the United States, employers likewise shoulder the cost of lost days and medical claims; depression alone is associated with 200+ million lost workdays each year in the U.S.
And beyond absenteeism and turnover, consider the opportunity cost: a demoralized workforce simply cannot deliver their best ideas or customer service.
By ignoring mental health, companies essentially underinvest in their own human capital, and the bill shows up later in lower growth and competitiveness.
Conversely, investing in mental health has proven returns. A Deloitte analysis found that certain supports (like counseling and screening programs) can yield a 5-to-1 or even 6-to-1 return on investment in the form of higher productivity and reduced illness costs. The choice is clear: pay now to support mental health, or pay much more later in lost talent and performance.
Leading by example: Companies that prioritize mental health
The good news is that many leading companies have recognized this reality and moved swiftly to make mental health part of their core culture. These organizations are treating mental health as seriously as physical safety or financial targets, embedding support systems and signaling to employees that it’s okay to put well-being first. Their success stories offer inspiration and proof that a focus on mental health truly pays off.
For instance, Starbucks has invested heavily in mental health resources for its workforce. The coffee giant expanded its employee assistance program to offer free therapy sessions through a partnership with a mental health provider, ensuring that baristas and corporate employees alike can easily access counseling when they need it.
Google has rolled out on-site wellness centers and generous mental health benefits, including counseling services, mindfulness courses, and even “reset” days for employees to recharge. During the height of the pandemic, companies like Bumble and LinkedIn made headlines by giving all employees a fully paid week off to recover from burnout and stress – a bold move that signaled genuine care. Other firms have launched ongoing initiatives:
Deloitte implemented a program to train mental health first aiders among staff, creating peer support networks across the organization. Johnson & Johnson and Unilever have each built global mental well-being strategies, from destigmatization campaigns (such as J&J’s “Show Your Stripes” initiative encouraging open conversations) to offering resilience training and apps that help employees build healthy habits. These employers report not only positive feedback from employees, but also tangible improvements in retention and engagement after rolling out mental health programs.
Even structural innovations are proving effective. A number of forward-thinking companies are experimenting with flexible work models to reduce stress – for example, piloting a four-day work week without salary cuts. The results are telling: in one trial of a shortened week with 900 employees, workers reported higher performance and significantly lower burnout and fatigue while maintaining 100% productivity.
Cisco has periodically shut down operations for “wellness days” to give everyone a chance to decompress, and Salesforce introduced an internal campaign promoting mindful work and meeting-free blocks of time. Across the board, these initiatives share a common thread: when employees see their company actively caring for their mental health, they feel valued and motivated.
Companies with robust mental health programs have become employers of choice, often cited in “best places to work” rankings and enjoying reputational benefits that help them attract top candidates. By leading with empathy and action, these organizations demonstrate that supporting mental health is not just possible at scale – it’s transformative for workplace culture.
Actionable steps for HR to support mental health
HR professionals looking to bolster mental health support don’t have to reinvent the wheel. There is now a wealth of knowledge about what works when creating a mentally healthy workplace. Here are some best practices and actionable steps.
HR leaders can take, starting today:
Cultivate an open, stigma-free culture: Make it standard to talk about mental health just as you would physical health. Encourage leaders and managers to share their own experiences or challenges (where appropriate) to normalize the conversation. This openness is crucial – currently almost 60% of employees have never discussed their mental health at work, often out of fear. HR can lead campaigns, host workshops, or start employee resource groups focused on mental well-being to signal that it’s safe to speak up.
Train managers to recognize and respond: Your frontline managers play a pivotal role in employees’ day-to-day well-being. Invest in training so that managers can spot signs of burnout or distress and know how to support team members or direct them to resources. Today, nearly 45% of supervisors have never received any mental health training– closing this gap will empower leaders to assist rather than inadvertently alienate struggling employees. Even basic mental health first-aid training or stress management coaching for managers can make a huge difference in creating a supportive environment.
Improve access to professional support: Reevaluate your employee assistance programs (EAPs) and mental health benefits to ensure they truly meet employees’ needs. This could mean providing free or subsidized counseling sessions, partnering with mental health apps or teletherapy platforms, or extending insurance coverage for therapy and psychiatric care. When support is accessible, employees are more likely to get help early – preventing small issues from becoming crises. Also, clearly communicate these benefits; many employees aren’t fully aware of what’s available. A robust support system shows employees that help is there when life gets hard, and it reinforces that the company cares.
Prioritize work-life balance and flexibility: Burnout often stems from chronic overwork and lack of balance. HR can address this by shaping policies that protect personal time and promote flexibility. Encourage employees to actually use their vacation and mental health days (and lead by example). Implement reasonable limits on after-hours emails or create norms around not expecting instant replies at night. Where possible, offer flexible scheduling or remote work options – giving employees more control over their work life can dramatically reduce stress. Some companies have even introduced “no-meeting Fridays” or shortened work weeks, finding that productivity doesn’t suffer but morale improves. Simple steps like respecting boundaries and offering flextime cost little and pay back a lot in wellbeing.
Integrate wellness into the workplace: Go beyond reactive support and embed mental wellness into the fabric of your workplace. This could include mindfulness or stress-reduction workshops, regular check-in surveys on employee well-being, and office design considerations (like quiet spaces or relaxing break areas). Sponsor seminars on building resilience, time management, or coping skills. Celebrate mental health awareness events and encourage team bonding activities that foster connection (combating the isolation that can feed poor mental health). By treating wellness as a continuous initiative – not one-off perks – HR can create an environment where healthy habits are encouraged and stress is actively managed.
Measure impact and iterate: Just as you track engagement or turnover, track metrics related to mental health. Utilize pulse surveys, EAP usage rates, or feedback from exit interviews to gauge how employees are feeling and what’s working. Use this data to iterate on your programs. Maybe stress is spiking in a certain department – that’s a cue to intervene. Or perhaps few employees use a particular benefit – that might mean it’s not the right fit or not well-publicized. By treating mental health support as a strategic, data-informed program, you can continuously improve its effectiveness. Remember, what gets measured gets managed.
Each organization’s approach may look different, but the goal is the same: make mental health support proactive, visible, and ingrained in the company’s DNA. Small steps, done consistently, can shift a culture. As the saying goes, “culture eats strategy for breakfast” – and a culture that genuinely values mental well-being will naturally attract and retain people better than any slogan or recruitment bonus ever could.
A Call to Action: Make Mental Health Core to Your Talent Strategy
It’s time for HR leaders to embrace mental health as fundamental to talent strategy, not an optional add-on. The evidence is overwhelming that when employees feel psychologically safe, supported, and valued as whole people, they reward companies with deeper loyalty and higher performance.
Conversely, when mental health is neglected, no ping-pong table or free lunch can compensate for the toll it takes on morale and attrition. As one report noted, we’re in the midst of a “crisis of wellbeing” in the workplace but it’s a crisis we can solve. By treating mental health with the urgency and importance it deserves, you position your organization to win the battle for talent in this new era.
HR professionals are uniquely positioned to drive this change. You are the advocates who can translate executive support into tangible programs and policies that improve employees’ lives.
By championing initiatives – from better benefits to manager training to simply asking employees how they’re doing and really listening – you set the tone that mental health matters. This is incredibly motivating to today’s workforce. People want to bring their best selves to work, and they will gravitate toward employers who empower them to do so.
Imagine the payoff: a workplace where employees feel energized, not drained, by their jobs; where top talent joins and stays because they know their well-being is a priority; where mental health days are as normal as sick days, and seeking support is viewed as a strength, not a stigma. Such a workplace isn’t a fantasy – it’s being built right now by organizations that have seen the light. The companies with robust mental health programs are already reaping benefits in recruitment, retention, and reputation. They’re proving that doing right by your people is also a winning business strategy.
So, what will your organization’s story be? As an HR leader, you have the opportunity to make “Mental Health: The New Talent Magnet” a reality in your company. Start conversations, pilot programs, get buy-in from the top – and don’t be afraid to be a vocal advocate. Even the World Health Organization has called on employers worldwide to protect, promote, and support mental well-being in the workplace.
Answering that call is not just professionally responsible; it’s personally rewarding to see colleagues thrive. In closing, let’s treat mental health as the cornerstone of talent management that it truly is. By caring for the minds behind the work, you create a company where people want to work – and that is the ultimate competitive advantage in today’s talent market. The challenge is real, but so is the o
