Why most workplace wellbeing & mental health programs fail – and how to fix them
- dafinaberisha
- Aug 12
- 5 min read
Updated: 4 hours ago
By 2026, corporate spending on wellness programs, including mental health support, is expected to reach record levels. On paper, that sounds like progress. But in reality, mental health is getting worse, not better. In this article, we’ll explore why, despite record spending, most workplace mental health initiatives fail (and what should leaders do differently).
Table of contents:
More spending, but no real workplace wellbeing and mental health program outcomes
A decade ago, workplace wellbeing budgets were modest – and mental health programs were the exception. Today, the landscape looks very different.
By 2026, global corporate spending on wellness initiatives is projected to hit $94.6 billion (HBR, 2024), nearly double what companies spent just ten years ago. The workplace wellness market, valued at $53.8 billion in 2024, is growing at 5% annually and is expected to surpass $124 billion by 2034 (GMI Insights, 2024). But, if billions are spent on workplace wellbeing, why isn’t mental health improving?
Gallup's State of the Global Workforce 2024 report, shows that:
44% of employees worldwide say they experienced a lot of stress during the day before the survey, the highest level ever recorded.
On the other hand, the World Health Organization estimates:
12 billion workdays are lost each year due to depression and anxiety, costing the global economy $1 trillion annually in lost productivity.
And according to Forbes,
In 2025 job burnout has reached an all‑time high, with 66% of employees in the US experiencing some degree of burnout.
Budgets are bigger but wellbeing and mental health outcomes have stalled. It's a 21st century paradox.
The next step is to understand why many well-being programs fail to make a real difference. Keep reading.
Why many workplace wellbeing programs don't work?
Several common issues explain the gap between increased investment in wellbeing and impact. Let's elaborate the five most common reasons:
Wellbeing programs rolled out in isolation. Programs addressing employee wellbeing help, but they can’t fix a stressful work environment on their own. To be effective, programs need to be paired with changes to workload, job design, and leadership practices.
One-size-fits-all solutions. A nurse, an engineer, and a sales manager face different challenges. Offering the same program to all employees may help some but won’t meet everyone’s needs. Simply put, not everyone needs an EAP or a meditation app.
Low engagement and high barriers. Stigma, lack of time, and clunky access to existing programs prevent employees from using what’s available.
Reactive only programs. Many programs step in only when problems are visible – after burnout, absenteeism, or resignations. Prevention is more effective and less costly.
Culture and leadership misalignment. If leaders reward overwork, send late-night emails, or fail to model healthy habits, wellbeing initiatives lose credibility. Employees see the gap between words and actions.
No measurement, No accountability. Few companies track whether programs reduce burnout, improve retention, or boost engagement. Without metrics, leaders can’t see what’s working or adjust.
The pattern is clear: most initiatives treat symptoms, not causes. Research from Harvard Business Review highlights the need to shift from “I-frame” (individual-focused) interventions to “S-frame” (system-focused) strategies that change the work environment itself.
In the next section, we'll discuss what leaders can do to improve the impact of wellbeing and mental health initiatives.
How can leaders boost wellbeing program outcomes?
Redesign work to reduce stress
Address the sources of stress directly: set realistic workloads, increase job autonomy, and cut unnecessary processes. Flexible working arrangements (when genuinely flexible) improve both productivity and satisfaction.
A University of Birmingham survey found that 76.5% of managers believe flexible working boosts productivity, reinforcing that changes in work structure benefit both employees and the organization.
Train leaders to support mental health
Managers need both the right mindset and the right tools to support their teams’ well-being. Provide training through group workshops on topics such as creating psychological safety, leading with empathy, and fostering a caring leadership culture. When leaders model healthy behaviors, it signals to employees that well-being is not just encouraged, it’s expected.
Use data to act before problems escalate
Well-being and mental health impact are no longer “unmeasurable.” The emerging field of predictive analytics in mental health is giving HR, HSE, and leaders the ability to identify which areas their teams are struggling with most, and to tailor actions accordingly.Predictive analytics can reveal early risk patterns, helping leaders act before small issues escalate into burnout or turnover. This proactive approach makes interventions more targeted and effective.
Make small changes that deliver big results
Small operational changes can have a significant impact on well-being. For example, to boost productivity and morale, consider:
Streamlining meeting schedules
Reducing unnecessary approval layers
Redesigning shifts to allow for recovery time
These changes often require minimal financial investment but deliver a high return in employee engagement and performance.
Offer support that’s personal and relevant
As briefly mentioned in the previous section, one-size-fits-all solutions rarely work. Modern organizations are increasingly choosing wellbeing and mental health solutions that allow for personalization.
For example, companies like On use platforms where every employee’s wellbeing journey begins with an initial assessment. The data – covering mental health status, preferences, and goals – is then used by AI to match each person with the right counsellor or coach. Combined with resources such as guided meditations, practical exercises, and videos, On ensures support is relevant, accessible, and tailored to individual needs.
Build a culture that puts mental health first
A psychosocial safety climate (PSC) is the shared belief that mental health is a priority at every level of the organization. A strong PSC reduces burnout, increases engagement, and improves retention – because employees see that well-being is valued in everyday actions, not just written in policy documents. Building PSC requires commitment from leadership, alignment across teams, and ongoing reinforcement through workplace practices.
Conclusion: Turning investment into real impact
Spending on wellbeing without addressing the system is like pouring water into a leaking bucket. (The benefits won’t last if the causes remain.) Evidence is clear: budgets for workplace wellness are bigger than ever, yet stress, burnout, and poor mental health continue to rise.
The solution is not to spend more, but to spend smarter. That means:
Redesigning work to remove unnecessary stressors and improve job design.
Equipping leaders with the skills and data to act early and lead with empathy.
Providing support that’s personal and relevant, so employees get the right help in the right way.
Organizations that combine these elements – systemic change, proactive, data-driven leadership, and personalized support – create a culture where well-being is part of everyday operations, not an afterthought. This is how investment in mental health stops being a cost line and starts becoming a driver of performance, engagement, and long-term success. This way, both people and performance benefit.
Interested to see what predictive mental health analytics can do for your organization? Get in touch here.
