How to promote mental health awareness in the workplace

It's a tough job, and as the saying goes, somebody's got to do it. But not at the expense of their well-being. Workplace pressure is real, with tight deadlines, packed schedules, and the constant push to do more. When stress and burnout build up, they can drain the whole staff’s energy, lower morale, and make it harder for everyone to succeed.

That’s why mental health awareness in the workplace is so important. A supportive work environment doesn’t just help employees manage stress—it also creates stronger teams, improves collaboration, and fosters a culture where people can truly thrive. 

In this guide, we’ll show you how to build a healthier, more balanced workplace where people feel valued, understood, and set up for success.

Understanding the importance of mental health in the workplace

Supporting mental health in the workplace means creating an environment where employees feel valued, balanced, and supported—not just addressing conditions like anxiety or depression. Fostering a culture where people can manage work and life without feeling overwhelmed matters, too.

Here’s how a positive work environment supports both well-being and business success:

• Employees with strong mental health support in the workplace are more likely to build positive relationships with colleagues and managers.
• Workers who feel seen emotionally and mentally tend to perform better, meet deadlines, and produce higher-quality work.
• A responsive and understanding workplace culture increases job satisfaction and lowers employee turnover.
• Encouraging open conversations about mental health symptoms helps employees feel safe seeking help without the fear of stigma or judgment.

Why mental health awareness in the workplace matters

Neglecting mental well-being doesn’t just affect individuals—it also shapes the entire workplace. When employees are stressed or disengaged, productivity dips, morale suffers, and teams struggle to collaborate effectively. Ignoring these challenges can lead to disengagement, burnout, and reduced productivity. 

Here’s how neglecting mental health and wellbeing in the workplace can impact your business:

• Decreased productivity: Mental health challenges often lead to fatigue and lack of concentration, resulting in a noticeable drop in employee productivity. In fact, studies estimate that businesses lose up to 35% of an employee’s productive capacity when mental health is not addressed.
• High turnover and recruitment costs: Employees who don’t feel supported are more likely to leave, which can be costly for businesses. Depending on the role, replacing a single employee can cost 50% to 200% of their annual salary. Prioritizing mental health can help retain top talent and lower recruitment expenses.

Conversely, prioritizing mental health creates a healthier, more motivated team all around. When employers focus on mental health awareness, the benefits are clear:

• Increased engagement: A workplace that supports mental health sees more motivated and productive employees. When people feel supported, they’re more likely to invest emotionally in their work.
• Reduced absenteeism: Offering mental health resources—like fitness activities, stress management workshops, and mindfulness sessions—can help reduce absenteeism caused by mental health struggles, keeping employees both present and mentally engaged.
• A more positive work environment: Promoting mental health awareness and workplace wellness creates a supportive atmosphere where employees trust their managers and feel comfortable collaborating with colleagues.

How to know when an employee needs mental health support

The signals that an employee is struggling with their mental health can be subtle. However, an attentive colleague or manager who is able to communicate effectively can make a difference, especially if they know what to look out for. Here are some signs to note and what they could mean.

Changes in behavior

When someone’s usual demeanor shifts noticeably, it’s often a sign of poor mental health. Maybe a cheerful team member becomes withdrawn, or a calm colleague starts snapping at inconsequential things. These changes don’t come out of nowhere—they’re often a response to underlying stress, anxiety, or burnout. Instead of brushing it off, take a moment to check in privately. Something as simple as, “Hey, I’ve noticed you’ve been quieter than usual. Is everything OK?” can mean a lot.

Declining performance

If a reliable employee starts missing deadlines, delivering subpar work, or struggles to stay on task, it might be more than just a bad week. Mental health conditions like depression or chronic stress can make it challenging for someone to focus or stay motivated. Approach the situation with understanding rather than frustration. Having a supportive conversation or pointing them toward available mental health resources—like an employee wellness program—can help them get back on track.

Social withdrawal

When someone starts skipping team lunches, avoiding group chats, or isolating themselves during meetings, it might mean they’re struggling with employee anxiety. This withdrawal isn’t always intentional—it’s often a way of coping when everything feels like too much. Creating a culture where it’s OK to talk about mental health can encourage employees to open up rather than retreat.

Frequent absenteeism or lateness

Being late to work or calling out frequently isn’t always a sign of laziness. It might signal that someone is dealing with poor mental health or facing challenges in their work-life balance. Stress, an unmanageable workload, or difficult working conditions can contribute to these patterns. Whether through hybrid schedules or mental health days, flexibility can help employees manage life’s demands.

Emotional outbursts

If an employee suddenly experiences frustration, anger, or even tears, it’s often a sign that they’re overwhelmed or struggling to manage mental health symptoms. Rather than labeling them unprofessional, consider offering support. A simple, empathetic “How can I help?” can go a long way.

Physical complaints

In many cases, declining mental health shows up physically. Frequent headaches, unexplained fatigue, or muscle tension might be masking stress or anxiety. People may not even realize that what they’re feeling physically is tied to their mental health. By encouraging open conversations and making mental health support in the workplace accessible, you can aid in their recovery.

Disengagement or lack of motivation

When someone seems “checked out”—missing deadlines, avoiding projects, or appearing indifferent—it’s often a sign of burnout or poor mental health. This kind of disengagement can be addressed by analyzing workplace culture. Are employees supported? Are workloads reasonable? Offering employee wellness programs or taking time to recognize their contributions can reignite motivation.

What causes poor mental health in the workplace?

Several factors can significantly impact employees' mental health in the workplace. Here are 10 common contributors:

• Unrealistic workloads: Overburdened employees often experience stress, burnout, and decreased productivity. The higher the workload, the more rest an employee requires.
• Insufficient support systems: Without adequate mental health support in the workplace, employees, especially those in remote roles, can feel isolated.
• Toxic culture: A hostile environment marked by discrimination, bullying, or lack of respect can lead to anxiety and depression.
• Lack of career development: When employees feel stagnant in their roles, they may experience frustration and a lack of engagement, which can lead to mental health issues.
• Poor communication: Unclear expectations and lack of feedback can lead to apprehension, confusion, and disconnection from the team.
• Job insecurity: The fear of losing one's job can cause significant dread, reducing morale and performance.
• Inadequate compensation: Underpaid employees often face financial stress outside of work, which can affect their motivation.
• High-performance expectations: Constant pressure to perform at high levels can lead to exhaustion and tension, especially without proper support.
• Lack of recognition: An employee who is undervalued can experience feelings of defeatism and pessimism, leading to poor mental health outcomes.

How to improve mental health in the workplace

From setting clear policies to encouraging open conversations, small changes can make a big difference in mental well-being. A healthier work culture means stronger teams, better engagement, and a more productive environment. Here are some practical ways to support your team.

Encourage open conversations about mental health

Normalizing discussions about mental health can reduce stigma and make employees feel more comfortable reaching out for support. HR can help by organizing offsite workshops or team conversations about mental health without judgment.

Implement flexible working policies

Flexible work hours or mental health days can help employees manage their personal and professional lives, especially when stress levels run high. When employees feel they have control over their schedules, it can reduce burnout and boost morale.

Develop wellness programs

Creating programs focusing on overall well-being shows employees that HR cares about their mental health. Whether offering employee assistance programs (EAPs), vouchers, or sponsorships for relaxation or fitness sessions, wellness programs are a great way to promote healthy work habits.

Offer training for managers

When managers are trained to recognize the signs of mental health challenges, they’re better equipped to offer direct support or point employees toward resources that can help. If leadership is actively engaged, it creates a more understanding environment on all levels.

Practical tips for promoting mental health in the workplace

Supporting mental health in the workplace doesn’t always require significant changes, but small, thoughtful actions can greatly impact your team's overall well-being. Here are some simple yet effective ways to promote a mentally healthy work environment:

Create a dedicated space for relaxation

A quiet spot where employees can step away, breathe, and reset—even for a few minutes—can make a big difference. It doesn’t have to be anything fancy, just a space where they can take a break, clear their mind, and recharge.

Survey employees on their well-being

Regular surveys are a great way to gauge workplace stress levels and mental health concerns. They help identify issues early and give insight into how your team is coping with work-related pressures. Act on the feedback to make necessary improvements.

Host mental health workshops

Workshops cultivate dialogue and reduce stigma. Educating employees on mental health awareness, stress management, and mental health literacy can equip them with tools to recognize signs of burnout or anxiety in themselves and others.

Support employee mental health with meaningful benefits

Supporting mental health in the workplace is a must for building a high-performing, engaged team. When employees feel supported, they’re more productive, loyal, and motivated. Benefits like wellness programs, mental health days, and flexible work demonstrate that you care about their overall well-being.

With Oyster, implementing these benefits is effortless. Our platform streamlines the process, making it easy to create a healthy and supportive workplace. Explore how you can transform employee benefits with Oyster’s Total Rewards and build a thriving workplace culture.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.