Workplace Mental Health in Crisis: Why Employee Engagement is Plummeting

by Gabby Davis Aug 6,2024
Engagedly
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With rising workplace demands, nearly 35% of U.S. employees report a decline in their mental health, as shown in The Conference Board’s latest survey of over 1,100 workers. This deterioration is closely linked to lower employee engagement: almost 70% of those reporting mental health struggles also report disengagement at work, underscoring the critical need for a workplace culture shift.

Mounting Pressures on Employees and Employers

Over the past year, employees and organizations have faced growing economic, cultural, and social pressures, often clashing with employees’ increasing desire for a healthy work/life balance. According to a report by Jabra, 61% of workers now expect greater autonomy and flexibility in their work environments. This change reflects a broader shift in worker expectations post-pandemic, with employees seeking better boundaries between work and personal life to protect their mental health.

However, as inflation, high interest rates, and economic uncertainty persist, many companies have prioritized cost-cutting over employee well-being. Instead of adding support, they have increased workloads, hoping to maintain or improve productivity with fewer resources. As a result, managers are being asked to “do more with less,” a demand that often passes to employees, raising stress levels across organizations.

Workers are calling for more control, flexibility, and a voice in shaping their work experience,” says Bernard Wong, Senior Manager of Insights at Mind Share Partners. However, many employers are focused on cutting people-related costs, maximizing productivity, and avoiding contentious social or political issues. This tension exacerbates workplace mental health challenges, trapping employees between wanting meaningful change and facing rigid organizational priorities.

Adding to the challenge, ongoing social isolation since the pandemic has affected employees’ abilities to communicate and maintain relationships. The cumulative effect of these pressures has made discussions around mental health and well-being tougher and often more stigmatized. Employees struggling with strained relationships at work or home may feel especially reluctant to disclose their mental health issues, fearing negative impacts on job security or performance evaluations.

The Roots of Burnout: Broken Workplace Cultures

A key takeaway from The Conference Board report is that burnout often stems from systemic workplace issues, including long hours and heavy workloads. These demands drive poor mental health, as employees spend more time and energy managing workload than engaging in self-care. Data from Deloitte shows that 77% of employees attribute their burnout to these kinds of workplace pressures.

For example, 48% of employees experiencing mental health declines report working over 50 hours weekly, which not only reduces their time for personal care but also drains their mental resilience. Toxic workplace cultures that overvalue productivity at the expense of well-being lead to chronic stress, decreasing job satisfaction and leaving employees more vulnerable to mental health issues.

As valuable as perks like healthcare benefits and self-care apps may be, they don’t address the underlying toxic culture,” says Wong. “Organizations need to go beyond coping mechanisms and address the root causes of stress and burnout.” Research consistently shows that without structural changes—such as reduced workloads, clearer boundaries, and reasonable performance expectations—programs and perks alone cannot prevent or reduce burnout.

Rising Stigma and a Decline in Openness

The Conference Board survey found that 38% of workers felt uncomfortable discussing mental health with their managers, a significant rise from 18% the previous year. This increase in discomfort indicates persistent stigma around mental health, which is particularly present in high-pressure work environments where productivity and resilience are emphasized.

This reluctance to seek support could mean that employees experiencing mental health challenges go without critical resources or help. According to Abbie Rosenberg, founder of Mental Health Collaborative, this stigma is often based on misconceptions, such as viewing mental health struggles as personal failings rather than valid health issues. Additionally, the worsening dynamic between employers and employees has made some workers feel more insecure, discouraging them from sharing their concerns openly.

When support from management feels uncertain or insincere, employees may feel safer staying silent,” says Wong. This is reinforced by Qualtrics research, which found that 62% of employees feel their employers don’t genuinely care about their well-being. This perceived lack of support can deepen employees’ mental health struggles, reduce trust, and further impact engagement and productivity.

Strategies to Improve Workplace Mental Health

The Conference Board survey highlights that employees value flexibility and work-life balance above all else, with 55% citing guilt-free paid time off as helpful for their mental health. Here are some actionable strategies experts recommend:

  1. Model Vulnerability at the Leadership Level: Wong suggests leaders share their own mental health experiences to normalize conversations and build a culture of openness. When leaders show vulnerability, employees feel safer sharing their own challenges, promoting a supportive workplace atmosphere.
  2. Mental Health Training for Managers and Employees: According to an ADP survey, 57% of employees feel their managers lack the skills to discuss mental health issues without judgment. By providing mental health training for managers, companies can empower them to identify and support struggling team members effectively.
  3. Align Culture with Supportive Policies: Avoiding inconsistencies between words and actions is critical. When leaders advocate mental health but also enforce rigid productivity metrics, employees may notice and feel unsupported. Instead, aligning company policies—such as setting achievable targets and respecting work-life boundaries—with mental health commitments can improve trust and engagement.

Holistic Approaches to Mental Health Support

While wellness programs are beneficial, they cannot solve deep-rooted issues that lead to mental health crises in the workplace. Experts recommend a comprehensive approach that addresses the broader cultural and systemic problems contributing to stress. One example of this is the “How Are You, Really?” campaign by General Dynamics Information Technology (GDIT), launched in 2021.

This initiative was introduced after a tragic employee suicide and aims to reshape work policies to better support employee well-being. GDIT has seen positive results, with employees responding well to the campaign’s focus on reprioritizing workloads, flexible hours, and guilt-free paid time off.

Amy Gilliland, GDIT President, explains, “We’ve challenged our traditional approach to work, adding flexibility when life gets out of balance. Almost daily, an employee tells me how our program has helped them.” This shift away from traditional, rigid structures shows how embracing flexibility can create a culture that not only values productivity but also prioritizes mental health.

Building a Mental Health-First Workplace

According to a report by McKinsey, companies with strong mental health policies see a 21% reduction in turnover and a 30% boost in productivity. Here are effective ways to integrate mental health support into core business practices:

  • Implement Flexible Work Options: Flexibility is critical, with over 80% of employees in a recent LinkedIn survey ranking it as their top mental health priority. By allowing flexible hours, remote work, and adjustable workloads, companies can create a more supportive environment that enables employees to balance work with personal well-being.
  • Focus on Prevention Rather than Reaction: “Organizations need to redefine their stance on stress and performance expectations,” says Rosenberg. Rather than relying on wellness apps after burnout occurs, proactive workload management and realistic goal-setting help prevent mental health challenges from arising.
  • Establish Confidential Support Channels: Offering employees confidential access to counseling services can help them feel safe seeking help without fear of judgment or career impact. By establishing clear support channels, companies show commitment to employee mental health.

Looking Ahead

The evolving workplace landscape makes addressing mental health not only necessary but imperative. Companies prioritizing mental health are not only retaining talent but also attracting top candidates. A 2024 report by Boston Consulting Group reveals that, on average, 48% of workers from eight countries indicate that they are currently struggling with burnout.

This underscores the urgency for organizations to take preventive steps in supporting mental health. With flexible policies, open dialogues, and comprehensive approaches, organizations can create workplaces where employees feel mentally supported, engaged, and productive.

Gabby Davis

Gabby Davis is the Lead Trainer for the US Division of the Customer Experience Team. She develops and implements processes and collaterals related to the client onboarding experience and guides clients across all tiers through the initial implementation of Engagedly as well as Mentoring Complete. She is passionate about delivering stellar client experiences and ensuring high adoption rates of the Engagedly product through engaging and impactful training and onboarding.

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