It’s been estimated that nearly one in 5 people in the U.S. have a mental health issue. SAMSHA says “Mental health includes our emotional, psychological, and social well-being. It affects how we think, feel, and act, and helps determine how we handle stress, relate to others, and make choices.” Within a business context, mental health issues are reflected in such areas as poor productivity, absenteeism, burnout, and, in a few extreme cases, violence. Since May is National Mental Health Awareness Month, it’s a good time for small business owners to understand what mental health challenges there are in the workplace and what they can do about it.
Mental health issues in the workplace
Psychiatric diagnoses, such as bipolar disorder, schizophrenia, ADHD, substance abuse, or PTSD, are not necessary for employees to be having mental health issues. Stress, anxiety, depression, and burnout may be experienced by one or more employees in your company, and the condition may be job related. According to the Lyra’s 2025 State of Workforce Mental Health Report, stress is the top mental health challenge in the workplace.
Stress can result from excessive work and unrealistic deadlines. Anxiety can result from job insecurity. Depression can result from lack of purpose at work. And burnout can result from work-related prolonged stress, anxiety, and depression.
What can small businesses do?
Small business owners don’t have to be psychiatrists or other mental health professionals to make the workplace a better for employees to minimize mental health conditions and accommodate those with diagnosed mental health problems. It’s been suggested that investing in mental health pays off: for every one dollar spent, there’s a $4 return.
Review employee benefits. Health plans are supposed to provide parity for mental health treatments. But going beyond insurance, employee benefits can offer important assistance.
- Employee assistance programs (EAPs). These programs provide counseling and support services for stress management and other mental health issues.
- Paid mental health days. This might be tricky because those who may need to use the benefit won’t do so; it means admitting to having a mental health issue.
Make accommodations for employees with mental health issues. The law requires employers subject to the ADA (15 or more employees) to make reasonable accommodations for employees with disability, which is a physical or mental impairment that substantially limits one or more major life activities. As long as there is no hardship to employers, they are required to make accommodations—adjustments to a work setting that make it possible for qualified employees with disabilities to perform the essential functions of their jobs. The following list from the DOL are examples of accommodations helpful to employees with mental health conditions:
- Flexible Workplace – Telecommuting and/or working from home.
- Scheduling– Part-time work hours, job sharing, adjustments in the start or end of work hours, compensation time and/or “make up” of missed time. This can permit employees to keep medical/counseling appointments.
- Leave – Sick leave for reasons related to mental health, flexible use of vacation time, additional unpaid or administrative leave for treatment or recovery, leaves of absence and/or use of occasional leave (a few hours at a time) for therapy and other related appointments.
- Breaks – Breaks according to individual needs rather than a fixed schedule, more frequent breaks and/or greater flexibility in scheduling breaks, provision of backup coverage during breaks, and telephone breaks during work hours to call professionals and others needed for support.
- Other Policies – Beverages and/or food permitted at workstations, if necessary, to mitigate the side effects of medications, on-site job coaches.
Other resources to help with accommodations are:
- Job Accommodation Network (JAN)
- EEOC’s Enforcement Guidance on the ADA and Psychiatric Disabilities
- ADA National Network
Improve management. Stress, anxiety, depression, and burnout can be minimized or avoided by better managing employees. Recognize that unreasonable demands on employees can trigger these conditions. Pair disabled employees with a helpful or understanding supervisor where possible.
Change company culture. Despite years of exposure in the media, among some people there continues to be a stigma about mental health issues. It would greatly benefit those experiencing these issues to be able to talk openly and receive support from co-workers and the company without fear of being stigmatized.
Final thought
Addressing mental health in your workplace is not only the right thing to do for your employees, but may also give you a competitive edge.
According to the Lyra report referenced earlier,
“High-value mental health benefits don’t just provide life-changing care; they deliver measurable business advantages, including significant health plan savings, improved productivity, and better retention.”
