The Impact of the Mental Health Crisis on Employers

The Impact of the Mental Health Crisis on Employers

It’s not just the healthcare industry that’s feeling the effects of the ongoing youth mental health crisis. Companies and organizations in general are experiencing the repercussions of poor mental health among teens and young adults. Due to high rates of anxiety, depression, and other conditions, employees are missing work or are distracted on the job due to family emergencies.

According to a recent Gallup poll, employees who report fair or poor mental health—about 20 percent of all workers and 30 percent of workers under age 30—have four times more unplanned absences than those with good mental health (12 days per year vs. 2.5 days). In addition, more than half of working parents miss work at least once per month to deal with their children’s mental health, a Nationwide Foundation poll found.

The impact adds up: Missed workdays due to mental health cost the US economy an estimated $47.6 billion annually in lost productivity, Gallup reports. Even worse: Employees aren’t accessing the support that may be available to them at work, through the Employee Assistance Program (EAP) or other benefits. Nearly 60 percent aren’t sure whether their workplaces offer accessible mental health support services in their workplace, and 24 percent say there are no such services available to them. In addition, only about 1 in 5 parents speak to their managers or HR departments about their child’s mental health struggles.

The Impact of Children’s Mental Health on Parents’ Work Performance

Even when employees don’t miss work, their performance can suffer due to worries about their child’s emotional and mental health and time spent trying to access help for them. The Nationwide Foundation poll, which surveyed 30,000 parents around the country, found that more than half of working parents have experienced “extreme concern” about their child’s emotional health and well-being. And that increased stress affects them at work.

Specifically, the poll found that 54 percent of working parents interrupted their work time to answer communication about their child’s mental health needs during business hours. In addition, between one-third and one-half of working parents’ thoughts are focused on their child’s mental health and well-being—even while they are at work. As the report states, “Children’s mental health has a large and direct impact on corporate success.”

Yet parents don’t seek help from their supervisors or HR departments, primarily because they’re unsure how their concerns will be perceived by their company and colleagues. As a result, they’re unable to access mental health resources that may be available through their EAP, such as telehealth, referrals, and short-term counseling services. Moreover, some employees are not aware that their company insurance policy covers mental healthcare for their child.

A survey in Britain revealed that Gen Z and young millennial employees are missing the equivalent of a day’s work every week due to mental health struggles, leading to a 150 percent loss in productive days.

Gen Z Mental Health and the Workplace

The growing awareness and openness about mental health among Gen Z (the generation born in the late 1990s and early 2000s) is a clear positive trend. More young adults are talking about mental health, feel comfortable being authentic about how they’re feeling, and are willing to seek treatment for mental health concerns. This generation is also more likely than older employees to take time off from work due to mental health issues. A survey in Britain revealed that Gen Z and young millennial employees are missing the equivalent of a day’s work every week due to mental health struggles, leading to a 150 percent loss in productive days.

In the United States, burnout is rampant among younger US workers. A 2023 Deloitte study used the World Health Organization’s criteria for burnout to assess Gen Z employees’ state of mind. They found that:

  • 36 percent of Gen Zs feel exhausted all or most of the time
  • 35 percent feel mentally distanced from their work
  • 42 percent often struggle to perform to the best of their ability

Younger Workers Value Companies That Care

Given this data, it’s not surprising that young adults gravitate toward workplaces that value well-being. In one survey, Gen Z employees rated “burnout and lack of work-life balance” as the number-two reason they would consider quitting their job (second only to “unsatisfactory salary”), and 82 percent wanted mental health days at work.

The practice of offering paid mental health days has potential plus sides for both employers and workers, experts say. “While mental health days clearly offer individual employees tangible, immediate benefit, arguably they may also boost organizational morale and long-term productivity,” Dana Brownlee, author of The Unwritten Rules of Managing Up: Project Management Techniques from the Trenches, writes in Forbes magazine.

In addition, companies can help reduce burnout by creating greater awareness among their employees about the workplace mental health benefits already available to them.

How Newport Healthcare Supports Employers and Employees

As an employer, you can direct a young adult or worried working parent toward tangible resources. Newport Healthcare offers free assessments and referrals for employees or their children who are experiencing mental health symptoms. Our mental health treatment is covered by most major insurance companies, both in and out of network.

All Newport facilities are accredited by The Joint Commission, the nation’s most respected healthcare accrediting body. Major insurance payers recognize this mark of quality care and are confident in covering a high percentage of our services. In addition, Newport Healthcare’s Center for Research and Innovation conducts ongoing research on our treatment, revealing industry-leading outcomes.

Newport’s Strategic Account Managers and Clinical Outreach Specialists are available at no cost to speak with employers, counsel employees and their families, arrange evaluations, and refer young people to the appropriate level of care at one of our nationwide residential and outpatient locations. We treat adolescents and young adults with depression, anxiety, obsessive-compulsive disorder, suicidal ideation, self-harm, bipolar disorder, PTSD/trauma, problem substance use, and disordered eating, among other issues.

Learn more about how Newport supports employers and employees to access the highest-quality mental healthcare and increase peace of mind, well-being, and productivity at work.