How Employee Benefits Can Support Mental Health in the Workplace
Mental health benefits in employee benefit plans can reduce absenteeism by up to 45% and increase productivity by 39%. A comprehensive mental health strategy within your benefits package not only supports employee wellbeing but directly impacts your business’s bottom line through improved retention, reduced disability claims, and enhanced workplace culture.
The Business Impact of Mental Health Challenges
Mental health challenges affect more than just individual employees—they have significant impacts on businesses as well. According to the Mental Health Commission of Canada, mental health problems cost Canadian employers over $50 billion annually through:
- ⏰ Reduced productivity — Presenteeism (working while unwell) can reduce performance by up to 35%
- 📅 Increased absenteeism — Mental health conditions account for approximately 30% of short and long-term disability claims
- 💸 Higher benefit costs — Mental health prescription medication and therapy services increase overall plan utilization
- 🔄 Higher turnover — Employees experiencing burnout are 2.6 times more likely to seek a new job
The good news is that proactive companies are discovering that strategic employee benefit plans can effectively address these challenges while providing significant return on investment.
5 Ways to Support Mental Health Through Your Benefits Plan
1. Enhance Mental Health Care Coverage
Why it matters: Financial barriers often prevent employees from seeking mental health support. When therapy sessions can cost $150-200 per hour, limited coverage can make consistent care unaffordable.
To maximize the effectiveness of your mental health benefits:
- Increase coverage limits — Aim for at least $1,000-$2,000 annually per employee for psychological services
- Expand provider types — Include coverage for registered psychologists, social workers, psychotherapists, and counsellors
- Reduce or eliminate co-pays — Lower financial barriers that discourage regular usage
- Cover medication management — Ensure psychiatric medications are included in your drug plan with minimal restrictions
This comprehensive approach ensures employees get professional help before minor issues develop into major problems requiring disability leave.
2. Implement an Employee & Family Assistance Program (EFAP)
An EFAP provides confidential, short-term counselling and referral services for employees and their immediate family members. These programs typically cost employers between $3-7 per employee per month but deliver exceptional value.
EFAP key advantages:
- 24/7 crisis support via phone, chat, or video
- Completely confidential (employers receive only anonymized usage data)
- Short-term solution-focused counselling (typically 4-6 sessions)
- Support for a wide range of issues beyond mental health (legal advice, financial counselling, relationship support)
- Resource libraries with self-help tools, articles and videos
Modern EFAPs often include digital components like self-assessment tools, guided meditation programs, and mobile apps that increase engagement and accessibility. For maximum effectiveness, regularly promote your EFAP through multiple communication channels to maintain awareness and reduce stigma around usage.
3. Provide Virtual Mental Health Care Options
Virtual mental health services have become increasingly popular, with 76% of Canadians reporting they would consider using virtual care for mental health support. These services remove significant barriers to access:
| Traditional Barriers | Virtual Care Solutions |
| Limited local specialists | Access to nationwide network of providers |
| Long wait times (often 2-3 months) | Appointments typically available within days |
| Scheduling difficulties during work hours | Evening and weekend appointments available |
| Commuting time and transportation issues | Access from home, office, or anywhere private |
| Privacy concerns about being seen at a therapist’s office | Discreet access without public visibility |
When implementing virtual mental health options in your benefits plan, consider these approaches:
- Dedicated virtual mental health platforms like MindBeacon, Inkblot, or Dialogue that offer on-demand access to therapists
- Telehealth add-ons to existing benefits that include mental health professionals
- Coverage for virtual sessions with traditional providers who offer remote appointments
4. Invest in Wellness and Prevention Programs
Preventative mental wellness programs have been shown to deliver an ROI of $1.62 for every dollar spent through reduced absenteeism, improved productivity, and decreased disability claims.
Effective wellness benefits that support mental health include:
- Health spending accounts (HSAs) that give employees flexibility to choose wellness activities that work for them, from gym memberships to massage therapy
- Mindfulness and meditation app subscriptions like Headspace or Calm (which report 32% reductions in stress among regular users)
- Wellness challenges with incentives for physical activity, proper sleep, and work-life balance
- Mental health first aid training for managers to recognize early warning signs
- Regular mental health check-ins or assessments as part of your wellness program
5. Simplify Benefits Access with Digital Tools
Even the most comprehensive mental health benefits won’t deliver results if employees find them difficult to access or understand. Modern digital benefits platforms can dramatically improve utilization rates by:
- Centralizing all benefits in a single, user-friendly mobile app or portal
- Enabling direct booking with mental health providers without requiring separate logins
- Simplifying claims submission with photo uploads and direct deposit reimbursement
- Providing benefits literacy tools that explain mental health coverage options in plain language
- Offering personalized recommendations for mental health resources based on individual needs
Pro tip: When evaluating benefits administration platforms, prioritize solutions that offer robust mental health navigation features, not just claims processing. The ability to guide employees to appropriate resources when they’re struggling is invaluable.
Implementing a Successful Mental Health Benefits Strategy
Successfully integrating mental health support into your benefits plan requires more than just adding services. Consider these implementation best practices:
- Create a communication plan that regularly promotes available mental health resources through multiple channels
- Train managers on how to discuss mental health benefits without overstepping boundaries
- Gather anonymous feedback about which mental health benefits employees most value
- Monitor utilization data to identify gaps and optimize your mental health offerings
- Lead by example with leadership openly supporting mental health initiatives
Mental Health Benefits ROI: The Business Case
While supporting employee mental health is the right thing to do, it also delivers measurable business benefits. Companies with robust mental health benefits report:
| Business Outcome | Typical Improvement |
| Reduced absenteeism | 25-45% reduction in mental health-related absences |
| Decreased presenteeism | 18-30% productivity improvement |
| Lower disability costs | 20-40% reduction in mental health disability claims |
| Improved retention | 26% higher retention rates |
| Enhanced recruitment | 60% of job seekers consider mental health benefits “very important” |
Need Help Improving Your Mental Health Benefits?
Not sure if your current benefit plan is doing enough for mental health? Get a free review or comparison quote from a licensed advisor who can help you design a mental health benefits strategy that supports both your employees and your business goals.
Conclusion: A Healthier Workplace Starts with Your Benefits Plan
Mental health support isn’t just an employee benefit—it’s a business strategy that delivers measurable returns. By implementing comprehensive mental health coverage, providing access to EFAPs, offering virtual care options, supporting wellness initiatives, and simplifying benefits access, you create a foundation for a healthier, more productive workplace.
The most successful organizations recognize that mental health benefits aren’t a cost—they’re an investment in their most valuable asset: their people. And like any good investment, the returns compound over time as employees feel supported, engaged, and equipped to bring their best selves to work.
Taking proactive steps today to enhance your mental health benefits means building a more resilient, loyal, and high-performing workforce for tomorrow.
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