ALIC Group

Mental Health

Supporting Your Workforce Through Mental Health Challenges

Mental health has become one of the defining workforce challenges of this decade — and organizational responses to it have become a meaningful indicator of how seriously an employer takes the well-being of its people. According to a 2024 SHRM survey, 44% of U.S. workers report feeling burned out, and 30% say they would take a pay cut to work for an employer that provides better mental health support. For HR teams and organizational leaders, these figures reflect both a challenge and an opportunity.

Why It Matters to the Organization

The connection between workforce mental health and organizational performance is well-documented. Mental health challenges cost the U.S. economy approximately $282 billion annually. The Integrated Benefits Institute estimates that $530 billion is lost annually due to unproductive time and impaired performance — a figure that encompasses the full spectrum of health and well-being challenges affecting the workforce.

Employees who have access to meaningful mental health support are more likely to remain engaged, less likely to take extended leaves of absence, and more likely to stay with the organization. According to a 2025 HR Lineup analysis, comprehensive wellness strategies — which include mental health components — reduce employee turnover by 22%.

What Employers Can Put in Place

Employee Assistance Programs (EAPs)

EAPs are among the most widely available — and most underutilized — employer-provided mental health resources. They typically provide confidential access to counseling, referrals, and support services at no cost to the employee. Increasing awareness and reducing perceived stigma around EAP use is a meaningful lever for HR teams.

Mental Health Benefits Under Group Plans

The Mental Health Parity and Addiction Equity Act (MHPAEA) requires that mental health and substance use disorder benefits be covered at parity with medical and surgical benefits in group health plans that offer them. HR teams should verify that their group plan's mental health benefits are structured in compliance with this requirement and communicated clearly to employees.

Leave Policies

Employees experiencing serious mental health conditions may be eligible for leave under the Family and Medical Leave Act (FMLA) or, in some cases, under an employer's short-term disability policy. Understanding the intersection of these protections — and communicating them to managers and employees clearly — is an important part of a supportive workplace framework.

Manager Training

Managers are often the first people an employee encounters when navigating a mental health challenge at work. Organizations that invest in equipping managers with awareness, language, and appropriate referral skills tend to see better outcomes than those that rely solely on formal benefit structures. This does not require managers to function as mental health professionals — it requires them to know when and how to refer employees to the resources that exist.

Disability Insurance as a Safety Net

When a mental health condition rises to the level of preventing an employee from working, short-term or long-term disability insurance may provide income replacement during the period of absence. Ensuring that employees understand how to access disability benefits — and that managers know not to discourage employees from using them — is a component of a comprehensive mental health support framework.

A Note on Communication

Research consistently shows that awareness of available resources is one of the most significant barriers to utilization. Organizations that proactively and regularly communicate the mental health resources available to employees — through onboarding, benefits communications, manager briefings, and direct outreach — tend to see meaningfully higher utilization rates than those that rely on employees to seek out information independently.

This article is provided for informational purposes only. Atlanta Life Insurance Company does not provide HR consulting, clinical, or benefits advisory services. Organizations are encouraged to consult qualified HR professionals, legal counsel, and benefits advisors for guidance specific to their workforce.