In 2022, the World Health Organization (WHO) estimated that 15% of working-age adults have a mental disorder at any point in time.¹ In other words, approximately 1 in 7 workers have a mental illness that limits their ability to be happy, engaged and productive at work. According to the WHO, the most prevalent mental health illnesses, namely anxiety and depression, cost the global economy US$1 trillion each year, mostly driven by lost worker productivity.²

In the United States, the National Alliance on Mental Illness (NAMI) reported in 2022 that 22% of American adults “experience some sort of mental illness every year.”³ Approximately 1 in 5 adults in the United States are therefore affected by a mental illness annually. NAMI also reports that for 5% of adults, (namely 1 in 4 cases) the illness is considered serious.⁴ A serious mental illness is defined as “a mental, behavioral, or emotional disorder resulting in serious functional impairment, which substantially interferes with or limits one or more major life activities.”⁵

Anxiety and depression are the most common mental illnesses, distantly followed by post-traumatic stress disorders, personality disorders, eating disorders and schizophrenia.⁶ NAMI reported in 2022 that 19% of adults experienced an anxiety disorder in the pas twelve months, and 8% experienced a major depression (presumably driven by, or coupled with, an anxiety disorder). Young adults are mostly impacted. Women are also noticeably more impacted than men (Figure 1).

Workplace stress is mostly to blame

The WHO emphasizes that “work is a social determinant of mental health.”⁷ The American Psychiatric Association classifies the causes of mental illnesses in three broad categories:⁸

• Biological factors – genetics, family history, exposure to drugs and alcohol in the womb.
• Psychological factors – stressful events, traumatic experiences that can alter mental health.
• Social factors – home environment, community, relationships, employment, work environment.

Most people of working age spend a considerable amount time working, and the global labor participation rate is approximately 62% of the population.⁹ Meaningful work and a positive working environment reduce mental illnesses. By contrast, harmful working conditions and poor working relationships create or exacerbate mental health issues. The WHO states that “work presents an opportunity to promote good mental health and to prevent and support people living with mental health conditions.”¹⁰ According to the WHO, “there is reasonable consensus on the influence of certain risk factors, also called psychosocial risks, on mental health at work.”¹¹ The WHO identifies ten risk factors that affect mental health in the workplace (Table 1).

Research confirms that workplace stress is the main cause of anxiety and depression among employees. The situation appears to be getting worse, despite efforts by many organizations to increase employee wellness and assistance programs. A survey of U.S. workers conducted in 2023 by The Robert Walters Group reveals that 60% of employees suffer from workplace stress, and 62% believe that their employer is not doing enough to combat work-related stress.¹² A survey completed in 2023 by Deloitte Canada reveals that workplace stress is the leading cause of employee mental health issues in Canada, and 70% of Canadian workers are “concerned about the psychological health and safety of their workplace.”¹³ These findings are disturbing and alarming. They clearly suggest that employers are not focused on the right solutions.

Personal therapies are no failsafe solutions

Workplace mental health consultant Morra Aarons-Mele observes that organizations are talking about mental health, and investing more in mental health than ever before, but that employees are not reporting a corresponding rise in well-being. She notes that “employers have not gone far enough in implementing a culture of well-being.”¹⁴ During 2024, she conducted an informal poll on LinkedIn, where 87% of more than 1,200 respondents reported that “a stressful co-worker, client, boss, or work situation was the catalyst for negative physical symptoms such as migraines, nausea, hair loss, sleep loss, weight changes, autoimmune outbreaks, and panic attacks.”¹⁵ Another survey conducted in 2024 by Headspace, an organization that offers mental-health solutions, reveals that work stress negatively impacts the physical health of more than 75% of employees.¹⁶

Work remains a significant source of stress and unhappiness for many people. “If the problem is the workplace [such as an unmanageable workload, unrealistic deadlines, a toxic manager, or problem subordinates] then a mental health first responder program is a joke” warns John Ryan, Chief Executive of Healthy Place to Work, a data analytics company that focuses on workplace health. “Organizations need to get down and dirty with what is going on” argues Mr. Ryan.¹⁷ Addressing workplace culture issues is much more difficult than offering individual therapies and prescribing medications aimed at helping those affected cope with / endure their situation.

Research from MindShare Partners, a nonprofit organization that helps organizations create healthy workplaces, reveals that employees are demonstrating a greater awareness of mental health issues in the workplace. They are looking beyond the current approaches of individualized treatment, and self-care resources and applications. According to MindShare, what employees “increasingly want is what the research has always shown works: mentally healthier cultures.”¹⁸

MindShare Partners observe that current mental health support from employers is “primarily centered around a productized, individual approach – therapy, applications, time off” for employees to “self-manage their mental health [issues] on their own time outside of work.”¹⁹ To better understand employee needs, they conducted a survey to rate the usefulness of selected approaches for addressing mental health issues in the workplace. The need for a “healthy and sustainable culture of work” along with a “safe and supportive culture for mental health” were rated as the most effective and sought after solutions by employees, well above the more traditional approaches of individualized mental health treatments and self-care resources for mental health (Figure 2).

Research by McKinsey & Company confirms that many organizations are not directing their attention to the most significant factors impacting mental health. As stated by McKinsey: “Many organizations have responded to the mental-health challenge facing employees by dedicating unprecedented resources to employee mental health and well-being. As laudable as these efforts are, focusing on providing access to resources [for individual treatment] alone may lead employers to overestimate the impact of their employee programs. They may be underestimating the critical role of other workplace factors in supporting employee mental health and well-being. Our global survey data suggests that improving workplace factors, such as eliminating toxic behaviors, boosting inclusivity, and creating sustainable work, can be several times more predictive of employee mental health and well-being than providing access to resources [for individual treatment] alone.”²⁰

Solutions are difficult but worthwhile

As mentioned by workplace mental health consultant Morra Aarons-Mele, “there’s no magic app to make people happier at work. Becoming a more mentally healthy organization is a commitment to change fundamentals, and it starts with leadership.”²¹ Her views are reinforced by psychologist Emily Anhalt who argues that fixing a problem culture that causes mental health issues is difficult. “This is not a quick and easy thing. This is a forever journey that you have to decide is worth your while” says Ms. Anhalt.²² Table 2 outlines solutions for creating a healthy workplace culture.

Research by Deloitte Canada reveals that improving mental health in the workplace yields a substantial return on investment. Their analysis of the costs and benefits of workplace mental health initiatives in ten large Canadian companies indicates a median annual return on investment of $1.62 for every dollar invested. For companies with programs in place for three or more years, the median return is $2.62 per dollar invested. As mentioned by Anthony Viel, Chief Executive Officer of Deloitte Canada: “The findings provide a business case that is impossible to ignore. Organizations committed to delivering and measuring impactful employee wellness programs are creating healthier workplaces and seeing investments in their people’s mental health pay off.”²³

According to the research by Deloitte Canada, the benefits of workplace mental health initiatives include reduced absenteeism, higher productivity, higher retention rates, stronger talent attraction, greater employee engagement, better alignment with organizational priorities, more effective risk management, and improved financial performance and results.²⁴ Deloitte Canada further notes that “a comparative study of the stock performance of [selected] companies listed on the S&P 500 Index found that those with high health and wellness scores (…) appreciated by 235 percent, compared with the overall S&P 500 Index appreciation of 159 percent over a six-year period.”²⁵

Without question, improving mental health in the workplace is the right thing to do from a moral and financial perspective. Employers have an opportunity to do much better to address the rise of employee mental illnesses, and to substantially increase organizational performance, by refocusing attention on creating healthier workplace cultures. Smart organizational leadership is needed to seize this tremendous opportunity that can yield a substantial competitive advantage.

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¹  World Health Organization, Guidelines on mental health at work, (2022), p.2.
²  World Health Organization, Guidelines on mental health at work, (2022), p.2.
³  National Institute of Mental Health (www.nimh.nih.gov/health/statistics/mental-illness).
⁴  National Institute of Mental Health (www.nimh.nih.gov/health/statistics/mental-illness).
⁵  National Institute of Mental Health (www.nimh.nih.gov/health/statistics/mental-illness).
⁶  Timothy Moore and Kara McGinley, “Mental health statistics 2024” USA Today, (March 12, 2024).
⁷  World Health Organization, Guidelines on mental health at work, (2022), p.2.
⁸  Timothy Moore and Kara McGinley, “Mental health statistics 2024” USA Today, (March 12, 2024).
⁹  World Health Organization, Guidelines on mental health at work, (2022), p.2.
¹⁰ World Health Organization, Guidelines on mental health at work, (2022), p.4.
¹¹ World Health Organization, Guidelines on mental health at work, (2022), p.2.
¹² Brooke Masters, “Leaner times will test employers’ commitment to worker well-being” National Post (Jul, 25, 2023).
¹³ Sarah Chapman, Ariel Kangasniemi, Laura Maxwell, and Marie Sereneo, “The ROI in workplace mental health programs: Good for people, good for business” Deloitte Insights (2019), p.6.
¹⁴ Morra Aarons-Mele, “Five Strategies for Improving Mental Health at Work” Harvard Business Review (April 2024).
¹⁵ Morra Aarons-Mele, “Five Strategies for Improving Mental Health at Work” Harvard Business Review (April 2024).
¹⁶ Morra Aarons-Mele, “Five Strategies for Improving Mental Health at Work” Harvard Business Review (April 2024).
¹⁷ Brooke Masters, “Leaner times will test employers’ commitment to worker well-being” National Post (Jul, 25, 2023).
¹⁸ Bernie Wong and Kelly Greenwood, “The Future of Mental Health at Work is Safety, Community, and a Healthy Organizational Culture” Harvard Business Review (October 2023).
¹⁹ Bernie Wong and Kelly Greenwood, “The Future of Mental Health at Work is Safety, Community, and a Healthy Organizational Culture” Harvard Business Review (October 2023).
²⁰ Jacqueline Brassey, Erica Coe, Renata Giarola, Brad Herbig, Barbara Jeffery, and Roxy Merkand, Present company included: Prioritizing mental health and well-being for all, McKinsey Health Institute (October 2022), p.6.
²¹ Morra Aarons-Mele, “Five Strategies for Improving Mental Health at Work” Harvard Business Review (April 2024).
²² Morra Aarons-Mele, “Five Strategies for Improving Mental Health at Work” Harvard Business Review (April 2024).
²³ Deloitte, Deloitte research reveals significant return on investment for workplace mental health programs (Nov 4, 2019) /www2.deloitte.com/ca/en/pages/press-releases/articles/significant-roi-for-workplace-mental-health-programs.html.
²⁴ Deloitte, Deloitte research reveals significant return on investment for workplace mental health programs (Nov 4, 2019).
²⁵ Deloitte, Deloitte research reveals significant return on investment for workplace mental health programs (Nov 4, 2019).