Why Mental Health Must Be a Strategic Priority for Every Workplace

On October 10, 2025, we join organizations around the world in recognizing World Mental Health Day, which “serves as a powerful reminder that there is no health without mental health.”

According to Gallup’s 2025 State of the Global Workplace report, only 31% of U.S. employees are engaged at work, the lowest rate in a decade. Globally, engagement sits at just 21%, while employee life evaluations have hit record lows. Meanwhile, the American Psychological Association (APA) reports that 92% of U.S. workers say it’s important to work for an employer who values emotional and psychological wellbeing. Yet, despite this overwhelming consensus, many employees feel unsupported, and the consequences are costly.

In many of SCP’s recent client engagements, our organizational assessments have revealed a consistent theme: employees are feeling stretched thin. Burnout, shifting priorities, and the pace of change are eroding engagement and prompting many to consider other job opportunities. In some cases, high turnover has created a costly cycle of constant recruitment and retraining, draining executive time, employer and employee energy, and company resources.

The reality is that employers are already paying the price for declining mental health and wellbeing, so why not invest those resources proactively? By prioritizing mental wellbeing before it affects performance, organizations can foster a culture where employees feel supported, valued, and equipped to thrive at work.

The Hidden Cost of Poor Mental Health

Mental health challenges aren’t just personal; they’re organizational. Depression and anxiety alone cost the global economy an estimated 12 billion lost workdays annually, amounting to nearly $1 trillion in lost productivity. In the U.S., 59% of employees reported burnout in 2024, with millennials disproportionately affected by 66% vs. 39% of baby boomers. These numbers reflect a workplace culture that often prioritizes output and performance over wellbeing, leaving employees emotionally depleted and disconnected.

Gallup’s research highlights that even as remote work boosts engagement, it can also increase isolation and emotional strain. Respect at work has returned to a record low of 37%, and 1 in 5 employees worldwide report feeling lonely. These emotional undercurrents erode trust, collaboration, and performance, especially when leaders fail to acknowledge or address them.

Why EAPs Aren’t Enough

Many organizations offer Employee Assistance Programs (EAPs), yet these resources are chronically underused. Despite widespread awareness, only a small fraction of employees actually engage with EAP services. Why? The barriers are often cultural, not logistical.

Over 40% of employed adults fear retaliation if they take time off for mental health, even though many know how to access care. This fear, rooted in stigma, lack of psychological safety, and unclear policies, prevents employees from seeking help. In many cases, EAPs are seen as reactive tools for crisis management rather than proactive support for everyday wellbeing.

Moreover, EAPs often lack visibility, personalization, and integration into the broader culture of care. When mental health is siloed into a hotline or a benefits brochure, it sends a message that wellbeing is peripheral, not central, to the organization’s mission.

The Strategic Case for Mental Health

Supporting mental health is ethical and strategic. Organizations that prioritize wellbeing see gains in engagement, retention, and performance. Gallup’s data shows that employees who feel cared for are significantly more likely to be engaged, productive, and loyal. APA research reinforces that respect for work-life boundaries and emotional safety are top drivers of employee satisfaction.

In our strategic planning work with clients NAMI California and the American Association of Suicidology, we’ve seen firsthand that an ounce of prevention can protect lives, strengthen families, and stabilize organizations. Providing resources such as access to mental health services, counseling support, substance use disorder and recovery services, and family services is essential, but it’s only part of the equation. Ensuring available resources are clearly communicated and easy to access is foundational.

At SCP, we encourage our clients to explore their messaging and reframe wellbeing as a shared organizational commitment. When leaders move beyond transactional gestures and embrace wellbeing as a core cultural value, they unlock the potential for transformational change.

How Can Leaders Can Support Mental Health and Wellbeing?

Here are five actionable strategies for leaders to create a culture of care:

1. Normalize Mental Health Conversations. Create opportunities for conversations about stress, burnout, and emotional wellbeing. Model vulnerability by sharing your own experiences and encouraging others to do the same. Frame these conversations with empathy and strategic intent by linking personal stories to organizational values.

For example, the Keystone Contractors Association, a commercial construction trade association in Pennsylvania, has made mental health conversations a high priority. Educational resources on mental health and suicide prevention are listed on their homepage. One in 5 construction workers struggles with anxiety and depression, and the construction industry has the second-highest rate of suicide among all occupations. Their goal is to raise awareness among their members, “making it ok to talk about mental health issues.”

2. Audit and Elevate EAPs. Review your EAP offerings and assess usage rates. Are employees aware of these resources? Do they feel comfortable using them? Consider integrating mental health support into new employee onboarding, team meetings, and leadership development. Make EAPs visible, accessible, and culturally relevant.

Provide supplemental resources that proactively address stress, burnout, and depression. Consider hiring a wellness partner—a professional outside the organization who can support your employee engagement and wellbeing goals.

3. Train Managers as Wellbeing Champions. Managers are the frontline of employee experience. Equip them with training in psychological safety, active listening, and strengths-based feedback. Encourage them to check in regularly on their teams’ wellbeing and not just on performance. Gallup’s research shows that management quality is a key driver of employee thriving.

4. Respect Boundaries and Flexibility. APA data reports that 95% of employees want their organizations to respect boundaries between work and non-work time. Honor time off, discourage after-hours communication, and offer flexible work arrangements. These practices signal trust and care, boosting morale and reducing burnout.

5. Measure What Matters. Track wellbeing metrics alongside traditional KPIs. Use pulse surveys, engagement scores, and feedback loops to understand how employees are feeling and respond accordingly. Treat mental health as a core business indicator, not a side note.

Finding Hope in the Data: A Call to Action

The workplace is at a crossroads. As Gallup warns, global engagement is on the brink, and wellbeing continues to erode. But we can find hope in the data. Organizations that invest in mental health through culture, communication, and care can reverse these trends and build resilient, thriving teams.

The challenge is to move beyond performative wellness and toward strategic, sustained, clearly communicated support. Craft messaging that resonates, policies that empower, and cultures that heal. We know that when employees feel valued, supported, and safe, it’s a win for organizations, employees, and communities.

If you’re unsure where to start, you don’t have to figure it out on your own. At SCP, our team of wellness advisors and coaches is here to guide you. We specialize in customizing wellness strategies that align with your organization’s unique culture, challenges, and goals.

Let’s take the next step together. Reach out today, and we’ll help you build a workplace where mental health and wellbeing are embedded in the way you lead.

Sources: 1. Gallup – Employee Wellbeing; 2. Gallup – State of the Global Workplace 2025 Report; 3. American Psychological Association & High5 – Mental Health Workplace Statistics