Most employees say stress at work effects their sleep and relationships with others.

Roughly three in four employees report an impact on sleep while three in five report an impact on relationships. At the same time, Gen Z and Millennial employees report poorer overall work health than other generations.

With mental health in the workplace pushed to the forefront of employee concerns, PropertyCasualty360.com spoke to Sam Reid, vice president of population health management at CAC Agency, about the decline in employee mental health and what’s being done about it.

PropertyCasualty360.com: More than half of employees report a decline in mental health. What are the specific issues?

Reid: Stress, anxiety, burnout and depression are top issues surrounding the mental health of employees, most of which have only been amplified over the last five years since the pandemic.

The National Alliance on Mental Illness puts a spotlight on burnout, stating that burnout remains a huge problem, especially among women, young workers and mid-level employees. More than 50% of employees are feeling burned out in the past year because of their job, and 37% reporting feelings so overwhelming it made it hard to do their job. Additionally, a study from Mental Health America reported that 90% of respondents feel that work stress affects their quality of sleep and 88% feel that work stress affects relationships with family and friends.

In general, workforce mental health is at a crossroads and without attention from employers and more importantly employer leadership, mental health will continue to decline, which directly relates to the productivity of the workforce and the success of companies.

PropertyCasualty360.com: What are the financial ramifications of shifting focus from physical health to mental health and the potential trade-offs companies face in prioritizing these benefits?

Reid: In the last few years, mental health has taken a front seat for employers, broadening the focus from physical wellness initiatives, such as physical activity and healthy eating. Well-being investments should be considered efforts to decrease future spending, which can be difficult to quantify. Focusing on the Value of Investment (VOI) is a more meaningful way to assess the impact of these programs.

This includes intangible assets that contribute to a company’s performance such as; absenteeism, sick day usage, presenteeism, retention of good talent, and attracting new talent. The American Psychological Association (APA) states that 81% of workers will be looking for workplaces that support mental health in the future, which lends to greater attraction of workers and better VOI for mental health investments. Budgeting for comprehensive and intentional mental health programming is good for business.

PropertyCasualty360.com: Why is diversifying vendors important to ensuring comprehensive mental health benefits?

Reid: Diversity within an employer’s vendor ecosystem can be helpful, as it can provide employees with resources that cover a range of needs, such as work-life assistance and therapy sessions to network referrals and management training programs.

When employers review current vendors and vet future vendor partners, employers should understand what is not currently working, what programs need to evolve, and what challenges the company is trying to solve for. It is also helpful to understand engagement in current benefits.

If the vendor(s) has maximized their marketing and communication best practices and engagement remains low, it may be time to find new partners or a more diversified list of partners. Vendor partner choices should be intentional and meaningful so that they can be impactful and the best way to achieve that goal is to practice employee listening so employers can choose the right programs for their workforce.

It is important to note that a diversified list of vendors without intention can lead to unintended consequences for employees, such as duplication of services, confusion of what programs are available, how to access programs, and more.

PropertyCasualty360.com: How can companies establish generational well-being in a diverse workforce and what is its potential impact on company culture and retention?

Reid: Each generation is unique with its needs and motivations. Currently, we have four generations in the workplace, which adds complexity to ensuring all employees feel like their needs are met. The first step is recognizing what generations are present in a company’s workforce. The second step is understanding what the motivations of their employees are. The third step is realizing that each generation has something unique to offer the workplace environment.

To understand motivations, employers can survey, lead focus groups, and conduct simple research. For example, the Baby Boomer generation (ages 60-78) require clear goals, structure, and recognition for a good job whereas Generation Z (16-27) wants to feel empowered. The recognition and understanding of how employees can support company growth can lead employers to appreciating the differences of generations, providing outlets for creativity, teamwork, mentorship, and more, which will open doors for a purpose-driven work environment and culture of generational well-being.

As employees find purpose in their work, as they feel supported in the workplace, and as they feel like their strengths are used for the greater good of the company, they will feel connected to their employer, which leads to lower absenteeism, greater retention, and even attraction of new, strong talent.

PropertyCasualty360.com: What is the workers' compensation perspective?

Reid: Workers' compensation is governed at the state level and, therefore, varies by state. Many states have started recognizing mental illness as a compensable claim, but the details matter, and it can often be difficult to prove that the condition was work-related.

For example, some states may only consider mental health compensable when tied to a physical workers' compensation loss, such as depression after an injury that impacts job performance. Other states may only cover mental health claims for specific professions, like first responders (e.g., PTSD for medical personnel or police officers). The most challenging situations involve claims for mental health issues caused by work-related stress, anxiety, etc. All of this highlights that workers' compensation and mental health are not a simple matter.

What’s universally understood is that mental health affects individuals in various ways. When an employee is dealing with anxiety, depression, or stress, it can impact how they perform their job, which may increase workplace risks. For instance, an employee struggling with mental health issues may lose focus, leading to serious accidents, particularly if their job involves driving or working with machinery.

While employers cannot change state workers' compensation laws, they can address and support the mental health of their employees. As state workers' compensation laws increasingly acknowledge mental health as compensable, employers must take proactive steps—much like they do with driver training or machinery safety—to help prevent incidents that affect workers' compensation outcomes.

Across the country, we are seeing more companies incorporate mental health resources into their benefits packages, which is a vital step. However, employers must go further by actively monitoring and supporting employee well-being. A happier and healthier workplace can have positive results on a company’s workers compensation statistics over time, which in turn could mean savings for the company on their insurance spend.

See also:

Special Reports /

More than half of U.S. employees are ‘burned out’

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