Reducing the Stigma Around Workplace Mental Health

By September 12, 2025August 31st, 2026Insurance

Workplace mental health is a complex, ongoing challenge. Employees consistently cite mental health as a top concern, and many organizations have expanded mental health benefits and resources in recent years.

But too often, employees avoid treatment out of fear that it could negatively affect their career, job security or reputation.

These concerns show that the stigma surrounding mental health remains a significant obstacle.

The management consulting firm McKinsey & Company defines mental health stigma as shame, prejudice or discrimination directed at individuals with mental health or substance use challenges. These negative beliefs can create feelings of isolation and barriers to treatment.

Addressing this stigma is crucial for individual health and well-being. But it’s also crucial for a productive and engaged workforce.

The prevalence and impact of mental health challenges

Mental health statistics highlight the need to address the stigma. According to the health care business coalition The Alliance and the management consulting firm WTW:

  • More than 20% of Americans have experienced a mental illness in recent years.

  • Over 25% of employees cite mental health as a top reason for leaving a job.

  • More than 50% of workers say mental health negatively affects their performance.

  • Mental illness costs the U.S. economy $200 billion a year in lost productivity, absenteeism and turnover.

On an individual level, mental health challenges contribute to increased stress, burnout and disengagement.

On an organizational level, poor mental health decreases employee morale and satisfaction. An unchecked stigma can erode workplace trust and culture.

Fortunately, the reverse is also true. The Alliance reports that mental health benefits can improve productivity and engagement.

The challenge is uncovering employees’ mental health needs and supporting their journey.

The disconnect between needs and priorities

Improving mental health requires better alignment between employee needs and workplace priorities.

According to McKinsey, 80% of full-time employees believe a mental health awareness or antistigma campaign would be helpful. But less than 23% of organizations report having initiatives designed to reduce stigma.

When employers were asked to rank 11 mental health priorities, reducing stigma came in last.

This disconnect creates an opportunity to address a meaningful challenge. Your leadership team, HR staff and benefits adviser can collaborate to reduce the stigma of mental health through visible, accessible solutions that normalize treatment.

Strategies to reduce the mental health stigma

Reducing the stigma in workplace mental health requires a multifaceted approach. It should incorporate your benefits offerings, workplace culture and employee communications.

The following steps can support your efforts to destigmatize mental health benefits and resources:

  • Incorporate mental health discussions into your culture.

  • Create safe spaces.

  • Improve access to mental health benefits.

  • Build mental health into other benefits offerings.

  • Train leaders to support mental health.

  • Gather feedback.

Incorporate mental health discussions into your culture

The human resources association SHRM recommends making mental health an ongoing topic of conversation. Don’t limit discussions to periods of crisis or high stress.

Instead, incorporate mental health into daily work life. Highlight the topic during meetings, routine check-ins and company communications. Engaging employees in these conversations normalizes mental health as a priority and reduces the stigma.

Create safe spaces

Employees need to feel safe talking about self-care and mental health challenges without fear of judgment. McKinsey suggests treating mental illnesses like any other medical condition rather than as moral failings. An open, inclusive approach reduces employees’ sense of shame and isolation.

Encourage employee resource groups (ERGs) focused on mental health or caregiving support. ERGs allow employees to support each other and take the lead in discussing challenges and solutions.

Include physical spaces such as quiet rooms for employees to decompress. Designated areas highlight the importance of allowing employees to meet their needs.

Leaders and supervisors play a vital role in creating a psychologically safe and open culture. In a psychologically safe work environment, employees feel comfortable expressing ideas, taking risks, asking for help, and admitting mistakes without fear of judgment. When leaders share their own mental health experiences and actively promote mental health benefits, they model psychological safety and a sense of belonging.

Improve access to mental health benefits

If employees don’t know where or how to access mental health resources, the stigma will continue. Communicate regularly about your mental health benefits, such as:

  • Employee assistance program (EAP) resources. Highlight EAP benefits, explain how they work and share employee success stories. Promote various webpages and phone numbers for easy access.

  • Mental health screenings. Screenings can help employees assess individual needs and challenges. Direct them to free tools like mental health screenings from Mental Health America and Talkspace.

  • Access to counselors, therapists and psychologists. Ensure these benefits are accessible and affordable to increase use.

Build mental health into other benefits offerings

Evaluate your current offerings and assess whether they adequately support mental health. Consider adding or enhancing options such as:

  • Paid and unpaid leave for mental health treatment and recovery

  • Paid time off for rest and recharging

  • Flexible schedules to accommodate personal challenges

  • Caregiving resources to support workers with child care and elder care duties

These benefits can reduce the stigma by including and supporting mental health.

Train leaders to support mental health

WTW recommends providing managers with tools and resources to maintain their own mental health and support their teams.

Leadership training should include recognizing signs of distress, communicating empathetically and guiding employees to helpful resources. Provide toolkits, guides, and contact information for local and national advocacy organizations. Ready-to-go resources can prepare managers to support employees proactively and during times of crisis.

Encouraging leaders to take mental health days or share their personal stories lets employees feel safe to do the same. This approach can strengthen workplace culture and magnify the impact of your mental health benefits.

Gather feedback

Listening to employees about their mental health challenges will help you understand the stigma and identify solutions.

Surveys, focus groups and external workplace reviews can capture insights into employee challenges. Basing mental health education on employees’ responses can target your workforce’s biggest obstacles.

Monitor workplace mental health through short surveys, one-on-one meetings and informal conversations. Tackling employees’ needs will help refine your approach and destigmatize mental health treatment.

The business case for addressing the mental health stigma

Reducing the stigma of mental health care isn’t just a compassionate act. It makes business sense. Prioritizing mental health boosts attraction and retention efforts. It also creates more engaged and productive teams.

For more information on reducing the mental health stigma, talk to your insurance broker or benefits adviser. They can help you explore mental health benefits that support workforce well-being, build engagement and meet organizational goals.