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Why employers should prioritise employee mental health and well-being

Having a diversified benefit plan that views employee health holistically can be a powerful way to attract and retain top talent and ensure your business is as an employer of choice.
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By Julio Garcia-Villalon , 

Mercer Marsh Benefits Leader

21/07/2022 · 3 minute read

The last few years have been challenging for organisations – many have had to endure extreme financial pressures, supply shortages, delays and interruptions to business. Among these business risks and concerns, the people risks have been immense. Not only did businesses have to transition to remote working in a short period and adjust their operations around lockdowns and restrictions, but their people also had to adapt to these changes seemingly overnight. While the pandemic took a toll on businesses financially and operationally, one of the biggest impacts of COVID-19 was on employees’ mental health.

With long periods of quarantine and self-isolation, fear of becoming ill or family members becoming ill, loss of loved ones, and drastic changes to lifestyle through movement restrictions and lockdowns, the pandemic contributed to increases in depression, anxiety, insomnia, and loneliness. Increases in sedentary behaviour, lack of physical activity and exercise, and poor diet contributed to decreases in physical health as well as mental health.

How does employee mental health impact employers?

Organisations that don’t provide adequate mental health and well-being support to their employees face increased exposure to people risk such as:

  • Increases in absenteeism and presenteeism
  • Reduction in productivity, motivation and engagement in employees
  • Increased risk for errors and omissions (E&O)
  • Increased risk for accidents and injuries in the workplace
  • Inability to retain, attract or engage top talent
  • Reputational and brand risks

The health and benefits landscape has gone through a significant shift over the last few years and organisations are now prioritising the overall health of their people, focusing on ensuring that their benefits plan provides a diversity of physical, financial and mental health offerings. Having a diversified benefit plan that views employee health holistically can be a powerful way to attract and retain top talent and ensure your business is as an employer of choice.

What can employers be doing to promote employee mental health and well-being?

  1. Ensure that your benefit plan includes a mental health and well-being strategy. According to a recent Mercer survey in MENA, 26% of employers enhanced their benefits due to the pandemic. Recent regulatory updates across the region are also showing a growing focus on mental health and wellness.
  2. Communicate openly with employees in order to understand what mental health needs exist. Employers can run surveys or have open conversations around mental health concerns. Understanding what your employees need will help inform your mental health strategy so that it provides actual value to your workforce.
  3. Ensure that your mental health and well-being offerings are diversified enough to cater to your entire employee group, including different life stages, ages, genders and lifestyles.
  4. Analyse your data in order to understand how your benefits are being utilised and which benefits are most valued by employees. Data and analytics was stated as one of the top strategic priorities when it comes to medical insurance by 34% of survey respondents, showing how important it’s become for organisations to know more about their workforce health.

Employers who support the mental health of their employees are more likely to benefit from improved productivity, motivation and engagement in their workforce. It’s important that employers view their health and benefit offerings as ways to enhance the overall well-being of their employees rather than just supporting those who are physically ill.

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