How corporate culture can support employee mental health… or make it much worse

For the past few years, businesses have been confronting the alarming rise in mental health issues among their employees, particularly those under 35. Many have responded by bolstering their employee assistance programs and expanding their networks of behavioral health providers.

While these efforts have helped, there remains a growing population of employees with depression, anxiety, substance abuse problems, and other distress that both impair their lives and prevent them from being fully effective on the job.

Psychologists point to numerous causes that are beyond the control of employers, including social media, isolation, economic uncertainty, and political tensions. For working adults, however, their job also has a profound effect on their well-being. Too often, employees experience the workplace as stressful, insecure, alienating, and hostile. It’s a phenomenon researchers call “quiet cracking.”

Business leaders concerned about the impact of mental health on employee productivity must take stock of how their company cultures may be exacerbating the stress. Creating an environment that is stable, supportive, and open fosters a sense of security that enables workers to thrive, do their best work, and build the strength to tackle other life challenges.

Mental health costs are increasing. Our Alliant Analytics data (a sample set of $14 billion in total annual claims spend) shows that mental health expenses for Alliant clients increased by 11.1% over the past year and now account for 17.2% of total healthcare benefit expenses.

Changing corporate culture is far less expensive than increasing mental health support programs. Of course, executives can’t simply decree a new culture. To make a difference, they must embody their values in every action and communication. That’s harder than writing a check.

Leaders under pressure from shareholders, technological disruptions, and economic uncertainty may find it hard to prioritize employee mental well-being.

“Some CEOs treat spending on mental health as an expensive lifestyle benefit that can distract workers from focusing on their jobs,” says Jennifer Spence, Alliant’s senior vice president for health and productivity. “They miss how this attitude fosters a culture of fear and insecurity that undercuts the organization’s performance.”

Spence says a culture that values the emotional well-being of every employee is the best way to foster a high-performance organization with the resilience to adapt to a rapidly changing market.

“If you think that people can be productive while disliking the company culture, you’re wrong,” she says. “When people are afraid, they spend more time worrying than working. That’s not an environment that encourages creativity and collaboration. And it’s certainly not the sort of company that will attract the best talent.”

Studies consistently show that when employees feel safe and valued, they are healthier and more productive. A survey by the American Psychological Association found that people who had reported lower psychological safety at work were twice as likely to feel tense during the workday and three times as likely to say their job hurt their mental health than those who felt more safe.

This stress has a direct cost for employers, the study found. Those who feel less safe are more likely to be irritable or angry with customers or coworkers and much more likely to be looking for a new job.

Spence offers five ways that business leaders and HR professionals can start to address the psychological well-being of their entire workforce, not just those with diagnosed mental illness:

1. Look for signs of “quiet cracking"

Quantitative signals include growing mental health claims, absenteeism, turnover, disability cases, and mental-health-related leaves. Qualitative signals are found in the questions that come through the HR call center and feedback from managers about declining employee engagement and productivity.

2. Understand your company’s role in exacerbating stress

Listen to employees and managers through surveys, focus groups, or informal conversations. Common concerns include a lack of management support, uncertainty about layoffs and reorganizations, limited opportunities for advancement, and a toxic work environment. At many companies, return-to- work policies are causing frustration, particularly among younger workers who are adjusting to office routines for the first time.

3. Engage front-line managers

Give these leaders mental health first-aid training so they can identify and respond to team members who need help. Ensure that they are aware of available resources and encourage them to give employees time off or make other accommodations to maintain their psychological balance. One tactic: Regularly send managers talking points to spur a brief wellness moment in team meetings. It’s an easy way to invite discussion on topics that many shy away from.

4. Remind people how to work in offices

In years of working remotely, many people have lost sight of the conventions that foster effective workplace collaboration. Younger employees may never have learned them at all. HR professionals, working with front-line managers, may need to guide people on the basics, such as how to give and receive feedback in a professional way.

5. Ensure that your policies and benefits support mental health

Verify that your EAP and medical plan mental health benefits that meet members’ needs, with easy access to in-network providers. Review your leave, paid time off, and other relevant policies to ensure that they enable employees to care for themselves and family members. Endeavor to provide physical locations conducive to mental and physical well-being, e.g., spaces for exercise and quiet time.

To be clear, none of the preceding steps suggests that we should turn offices into kindergartens. Business is competitive; the world is uncertain. Tomorrow could bring a merger or a new AI system that makes entire departments redundant. Pretending otherwise helps no one.

But if companies want a creative, engaged workforce amid this uncertainty, it is all the more important to create an environment that offers as much emotional safety as possible.

“We need to reframe our culture around honesty and transparency,” Spence says. “Leaders can’t promise that nothing will change. But they can commit to sharing as much information as possible and doing everything in their control to act with professionalism, empathy, and kindness.”

How Alliant can help

At Alliant, our employee benefits group is dedicated to fostering the emotional well- being of your workforce through a comprehensive and cost-effective approach. With our deep market insights and advanced analytics, we provide tailored strategies that enhance your work environment, making it more secure and productive. We’ll help you uncover any unmet mental health needs and recommend effective solutions, such as expanded mental health services, manager training, and engaging employee communications. Plus, we support our suggestions with a compelling business case to secure executive buy-in. Together, we can build a vibrant workplace that truly cares for its employees. Learn more about Alliant Health & Productivity.