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Employee Benefits and Mental Health Coverage

July 18th, 2023 | 1 min. read

By Payday HCM

Support employee mental health and wellness with employee benefits plans

Although close to 40% of companies upgraded their mental health offerings during the pandemic, that still leaves a whopping 60% of companies that may not be meeting their employees’ needs.


How Does Employee Benefits Affect Employee Mental Health & Wellness?

Today’s businesses are constantly competing for top talent, and including excellent coverage for employee mental health in your benefits offerings can help companies attract and retain the best employees, especially in a post-pandemic world.

To learn more about how you can address employee health and wellness with employee benefits offerings, contact a benefits expert today.

Not only are physical health benefits and HR policies important to new hires, but attractive and savvy candidates will also be asking about mental health coverage and choosing employers accordingly.

Remote workforces, unhappy employees, and high turnover create a range of new hurdles for leaders and workers alike. Highlighting mental health options that are available during open enrollment not only removes the stigma but can ultimately lead to a better workforce and the ability to attract top talent.


Why Prioritize Employee Mental Health & Wellness?

"The rate of depression has tripled since the pandemic began, impacting 1 in 3 Americans, while anxiety has jumped from 7.4% of adults in 2019 to 37.2% in 2021." - Centers for Disease Control and Prevention (CDC)

Employers’ mental health spending is likely going to increase, but overall health care spending will decrease over time. In other words, finding ways to support employee mental health will help shrink the need for employers to cover other types of healthcare costs for employees.

As employees improve their overall mental health, so will productivity and efficiency. Over the long term, employers’ health care costs will even out or improve.

The American Psychiatric Association (APA) found that employees who suffer from unresolved depression perform at a productivity level 35% lower than other employees. That translates into a loss of $210.5 billion annually due to absenteeism and on-the-job issues.

That health care spend will be reversed as employees become more productive and use the health care system less often, providing overall savings.


What's Next for Employers

A growing number of employers across the nation are expanding their coverage in 2023 to enable members to seek mental health solutions in a variety of ways and as a covered benefit.

Payday HCM can make decisions easier and more valuable for your employees, especially during open enrollment. To learn more about the employee benefits services that Payday offers, contact us today.


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