5 Quick Ways to Improve Mental Health Support in Your Employee Benefits Plan

When employees struggle with mental health issues, it directly impacts workplace productivity, increases absenteeism, and raises benefit costs. Implementing these five simple additions to your benefits plan can significantly improve mental health support without a complete plan overhaul. The right coverage helps employees access ongoing therapy, provides 24/7 support services, enables convenient virtual care, encourages healthy habits, and simplifies benefits access—ultimately creating a healthier, more productive workplace.

Employee struggling with mental health issues at work

The Hidden Cost of Mental Health Issues in the Workplace

Mental health challenges don’t stay at home when employees clock in for work. The impact on businesses is substantial and measurable. When workers struggle mentally, it manifests in several ways that affect the entire organization:

Increased absenteeism: Employees taking more sick days due to mental health challenges
Presenteeism: Being physically present but mentally distracted or disengaged
Higher prescription drug claims: Increased medication needs for mental health conditions
Team strain: Colleagues having to compensate for reduced productivity
Increased turnover: Employees leaving positions due to burnout or lack of support

According to the Mental Health Commission of Canada, mental health issues cost Canadian employers over $50 billion annually. On an individual level, companies lose approximately $1,500 per employee each year due to mental health-related absence and reduced productivity.

Did You Know?

30% of disability claims and 70% of disability costs in Canada are attributed to mental health problems and illnesses. A comprehensive benefits plan that supports mental health can significantly reduce these costs while improving employee wellbeing.

5 Essential Additions to Your Employee Benefits Plan

The good news is that you don’t need to completely rebuild your benefits package to provide better mental health support. Here are five straightforward additions you can ask your benefits broker to implement:

Employee accessing mental health benefits through digital app

1. Meaningful Coverage for Therapy and Psychiatric Care

Many benefits plans offer insufficient mental health coverage—as low as $300 annually. This typically covers just 2-3 sessions with a therapist or psychiatrist, far below what’s needed for effective treatment.

What to request: Increase psychological service coverage to at least $1,500-$2,000 annually per employee. This allows for approximately 10-15 sessions—enough for meaningful therapy that can address underlying issues rather than just crisis management.

Cost impact: While this increases the potential coverage amount, actual utilization rates mean the real cost increase is typically modest. Studies show proper mental health treatment can reduce overall health claim costs by addressing issues before they require more expensive interventions.

2. 24/7 Employee and Family Assistance Program (EFAP)

EFAPs provide confidential support for a wide range of personal and work-related challenges at any time of day or night.

What to request: A comprehensive EFAP that includes:

Immediate phone/video counseling sessions
Legal and financial consultation
Work-life solutions (childcare, eldercare)
Crisis intervention services
Management consultation for workplace issues

Cost impact: EFAPs typically cost $3-$6 per employee per month but deliver significant ROI by reducing absenteeism and improving productivity. For every $1 spent on EFAPs, employers save $3-$5 in reduced absence and improved performance.

3. Virtual Mental Health Services

Virtual care removes significant barriers to accessing mental health support, particularly for employees in remote locations or those with busy schedules.

What to request: Integration of virtual therapy platforms that offer:

Text-based therapy options
Video counseling sessions
Flexible scheduling including evenings and weekends
Specialized providers for diverse needs
Reduced wait times compared to in-person appointments

Cost impact: Virtual services often cost less than traditional in-person therapy while increasing accessibility and utilization. Many providers offer package pricing that can reduce per-session costs significantly.

Group of employees participating in wellness activities

4. Wellness Account Funding

Physical wellness directly impacts mental health. Providing funds specifically for wellness activities encourages healthy habits that support overall wellbeing.

What to request: Implement a wellness spending account that covers:

Fitness memberships and classes
Mindfulness and meditation apps
Wellness retreats or workshops
Nutrition counseling
Sleep improvement programs
Fitness trackers and wellness technology

Cost impact: Wellness accounts can be structured with annual limits ($250-$500 per employee) that fit your budget. These programs typically deliver 3:1 ROI through reduced healthcare costs and improved productivity.

5. Digital Benefits Cards and User-Friendly Apps

Even the best benefits won’t help if employees can’t easily access them. Digital tools reduce friction and increase utilization of available services.

What to request: Modern, user-friendly digital benefits solutions that provide:

Digital benefits cards for immediate access
Mobile apps with intuitive interfaces
Quick coverage verification (under 30 seconds)
Direct provider search and appointment booking
Simplified claims submission
Educational resources about available benefits

Cost impact: Many insurance carriers now include digital tools at no additional cost. These solutions can actually reduce administrative costs while improving employee experience and benefits utilization.

The Business Case for Mental Health Support

Investing in employee mental health isn’t just good for your team—it delivers measurable business benefits:

Benefit	Impact
Reduced Absenteeism	Employees with supported mental health take up to 41% fewer sick days
Improved Productivity	Effective mental health programs can increase productivity by 12-15%
Lower Disability Claims	Proactive mental health support can reduce disability claims by up to 30%
Decreased Turnover	Companies with robust mental health benefits experience 21% lower turnover rates
Enhanced Recruitment	77% of Canadian job seekers consider mental health benefits important when evaluating job offers

Expert Insight

“Supporting employee mental health isn’t just a cost—it’s an investment with significant returns. Organizations that implement comprehensive mental health programs typically see $2-$4 in return for every dollar invested through reduced healthcare costs, decreased turnover, and improved productivity.”

Implementation: Easier Than You Think

Enhancing your benefits plan with these mental health supports is straightforward and can be done without disrupting your entire benefits structure:

Step 1: Contact Your Benefits Broker
Simply ask your broker to review these five additions at your next renewal or even mid-policy if mental health concerns are urgent.
Step 2: Request Specific Quotes
Have your broker provide specific pricing for each component so you can evaluate the cost impact accurately.
Step 3: Prioritize Based on Need
If budget constraints exist, implement the changes that address your most pressing workforce needs first.
Step 4: Communicate Effectively
Ensure employees understand the new benefits and how to access them through multiple communication channels.
Step 5: Measure Utilization and Impact
Work with your broker to track usage and outcomes to demonstrate ROI and make future adjustments.

Frequently Asked Questions

Won’t adding these benefits significantly increase our costs?

Not necessarily. While coverage limits increase, actual utilization typically remains manageable. Many employers find that proactive mental health support reduces costs elsewhere—including fewer disability claims, reduced absenteeism, and lower turnover. The ROI on mental health programs ranges from 2:1 to 4:1 when all factors are considered.

How do we ensure employee privacy when they use mental health services?

Privacy is a critical component of mental health services. EFAPs are completely confidential—employers receive utilization statistics but never information about which employees use the service or what issues they discuss. Similarly, insurance claims data is protected by privacy regulations. Digital platforms use encryption and secure authentication to protect sensitive information.

Can we implement these changes mid-year or do we need to wait for renewal?

Many of these changes can be implemented mid-policy year, especially adding EFAPs or digital platforms. Increasing coverage limits for psychological services might need to wait until renewal, but exceptions can sometimes be made. Speak with your benefits broker about the timing that makes the most sense for your situation.

How do we know if these mental health benefits are actually being used?

Your benefits provider can supply anonymized utilization reports showing how often services are accessed. For digital platforms, usage statistics are typically available through administrative dashboards. The key is to track trends over time while maintaining employee confidentiality.

Ready to Improve Your Employee Benefits Plan?

Enhancing mental health support in your benefits package doesn’t require a complete overhaul or massive budget increase. By implementing these five strategic additions, you can significantly improve employee wellbeing, productivity, and retention while potentially reducing overall healthcare costs.

At Red Helm Canada, we specialize in helping organizations optimize their group benefits plans to support both employee health and business objectives. Our licensed advisors can work with you to evaluate your current coverage and implement these mental health enhancements in a cost-effective way.

We’ll provide you with detailed quotes and plan information on how to improve your group benefits package with enhanced mental health support options.

Take the First Step Today

Mental health challenges affect every workplace. By taking action now to improve your benefits plan, you’re investing in your most valuable asset—your people. The five additions outlined above represent a practical approach to supporting employee mental health that delivers real results without overwhelming complexity or cost.

Contact Red Helm Canada today to discuss how we can help you implement these changes and create a more supportive, productive workplace environment for your team.

Disclosure

All quotes, products, and services are marketed and distributed by Red Helm Canada, an independent brokerage. Review our brokerage disclosure to find out more about who we are. While all effort is made to ensure accuracy, rates and plan details may be subject to review or change without prior notice. Rates are not guaranteed until final approval and confirmation from the insurance carrier. Plan eligibility is not guaranteed and may be subject to a medical questionnaire or other eligibility criteria. By submitting your information in our quote request form, you are accepting the terms and conditions of our website and are accepting that we communicate with you electronically for the purpose of solicitation.

Mental Health Benefits Boost Productivity Wellbeing And Morale

Mental Health Benefits Boost Productivity Wellbeing And Morale

5 Quick Ways to Improve Mental Health Support in Your Employee Benefits Plan