Building a Mental Health Action Plan for Your Workplace

With approximately 3 to 4 professionals experiencing work-related burnout and anxiety in 2023, the need for structured approaches to employee mental health has never been more urgent.^[1]

The costs associated with managing these and other employee mental health struggles run more than $200 billion annually.^[2] This has left many employers scrambling to manage mental health crises, which has made organizations less productive and increased their vulnerability to financial, legal, and reputational risks. 

Companies that are getting ahead of the mental health crisis by integrating mental health support services into their workplace, on the other hand, are avoiding these costs.

But let’s be honest: not nearly enough organizations are taking this approach. Fewer than half of employers have formal plans in place for providing support. Creating a workplace mental health action plan can improve employee well-being and strengthen your organization.

This page provides a step-by-step roadmap for building a workplace mental health action plan. Continue reading to learn more about how a proactive approach can help you reduce costs, boost retention, and lower legal risks.

Why Does Proactive Workplace Mental Health Support Matter?

This section explains four key reasons why investing in mental health support is crucial for businesses. A well-designed plan can have widespread benefits that outweigh the resources necessary to implement it.

1. Employee Mental and Physical Health Are Connected

Research shows that an employer’s obligations to promote the physical health of their employees also require support for mental health. 60% of annual costs depression treatment costs are spent on related conditions like heart disease and diabetes.^[5] Chronic workplace stress can weaken the immune system and increase the risk of conditions like high blood pressure, heart disease, and autoimmune disorders.^[6]

2. Better Employee Well-Being Boosts Retention and Productivity

Employees at companies with mental wellness programs report 31% higher job satisfaction and 19% higher productivity.^[5] These businesses also retain staff more than twice as long as those without these plans in place. Workers in these environments say they have stronger relationships (99% vs. 84% satisfaction with coworkers), feel 93% more valued by employers, and experience 84% better mental health.¹ In contrast, nearly half of workers in low-psychological safety workplaces are actively looking for new jobs.

3. Reduce the Risk of Workplace Crises and Plan for the Unexpected

Crises can happen in any workplace, but how employers respond makes a difference.^[7] Businesses with mental health crisis response plans experience 58% fewer incidents like panic attacks or suicidal thoughts.^[5][1] Crisis plans allow for quick action during emergencies, reducing disruptions to how they run.

4. You Stay Compliant by Helping All Employees Thrive

A workplace mental health policy shows compliance with the Americans with Disabilities Act (ADA) and lowers the risk of lawsuits. Making accommodation processes consistent and training managers on inclusive practices protects employees and employers alike. Since 2020, mental health-related discrimination claims have risen by 62%. Additionally, 24% of workers with mental health difficulties report unsafe workplaces, compared to 14% without.^[8] Having mental health protocols in place turns compliance into a competitive advantage, benefiting the whole workforce.

How to Create a Mental Health Plan for Your Employees

The foundation of an effective workplace mental health action plan combines proven practices with your company’s unique culture and resources. Below is a step-by-step guide based on the U.S. Surgeon General’s recommendations for workplace mental health interventions:^[4]

1. Gather a Cross-Functional Team of Mental Health Advocates

Begin by forming a team that includes leaders, frontline staff, and experts in compliance. Include human resource (HR) professionals who are familiar with ADA and Family and Medical Leave Act (FMLA) requirements, legal advisors to reduce discrimination risks, and employee representatives with different roles and perspectives.

It’s worth considering paying employee representatives for their time as teams with paid employee advocates can have up to 50% higher policy adoption rates. This approach helps align the plan with both company goals and employee needs.

2. Collect Data That Reflects Your Company’s Strengths and Priorities

Effective mental health support strategies rely on insights from multiple sources. You can set your team up for success by gathering diverse data. Try using anonymous surveys like the WHO-5 Well-Being Index to assess stress and engagement, and focus groups to identify issues like stigma or workload problems.

Keep data collection simple, brief, and voluntary to avoid burdening your employees. Develop a complete picture by combining the survey results with internal data, such as Employee Assistance Program (EAP) usage, stats on absenteeism, and turnover costs. This helps establish a Return on Investment (ROI) and provides a clear view of wellness costs early on.

3. Transform Data Into Action

Using data trends can create positive changes in your workplace’s culture. For example, do overtime requests surge every summer? If so, consider creating flexible scheduling or temporary staffing solutions that protect work-life balance while keeping productivity levels high. Another example: if wellness benefits are underused in one department, you could create a mental health advocacy plan to help leaders use consistent language and scripts in their mental health-related conversations. After all, research shows that leaders who clearly communicate mental health resources see 34% higher employee engagement scores.^[1]

Identifying success stories within your organization can offer some of the most valuable insights. If a particular team retains top talent longer than others, their practices can serve as a blueprint for the whole company.

4. Put Strategic Support Systems in Place

Tailor your plan to meet your employees’ needs at every stage. Preventative efforts, such as wellness campaigns and tailored benefits, build resilience across the workforce. Early intervention tools, like mental health first aid certifications, give managers the skills to recognize and support signs of mental health struggles sooner.^[4] Crisis protocols, like partnerships with Mission Connection’s 24/7 telehealth lines, ensure swift responses to urgent situations.

5. Continuously Monitor Progress to Identify New Needs

To keep your program effective, be ready to adapt over time. Set up quarterly reviews to track short-term metrics like EAP engagement and long-term goals like reducing burnout. While the effects of communication campaigns may show up in a few months, cultural changes like improved retention can take 12–24 months. It can help to review your mental health plan yearly to include new research, employee feedback, and updated legal standards.