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By: Robin Simmons on November 4th, 2025

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Mental Health Benefits: A Competitive Advantage in Employee Retention

Total Rewards | Employee Engagement

 

In Brief

Employee expectations around mental health benefits have shifted from "should we offer them?" to "how do we do this well?" Employers that move beyond compliance to provide accessible, stigma-free mental health support gain a measurable edge in retention and engagement. This article outlines five actionable steps to transform mental health programs into true talent retention tools — from assessing current offerings and removing access barriers to empowering managers and integrating wellbeing into your employee value proposition.

 

Recent years have seen a welcome change in the way we talk about mental health. Shame and stigma have given way to openness and understanding, and people are generally more willing than ever to open up about their inner wellbeing.

This change has affected the workplace, as people increasingly expect their employers to show genuine care and a commitment to mental health. For employers, this means offering a better work-life balance, taking steps to tackle workplace stress, and playing a role in each employee's financial and physical health. Most importantly, employers need to offer benefits that provide the kind of support that people really need. 

When people feel genuinely supported in their mental health, they stay longer, contribute more, and become advocates for your organization. Employees who report employer mental health support show 91% job satisfaction, compared to 76% without that support. But what is the best way to put these ideas into practice?  

 

The shift from "should we?" to "how do we do this well?"

Most organizations now offer some form of mental health support. In fact, 93% of employers plan to maintain or expand wellbeing offerings this year, while 81% of employers now recognize that benefits are critical to attracting and retaining talent. Some companies are taking things even further by making mental health benefits a core element of their employee value proposition. 

However, research shows that there's a significant gap between basic wellness offerings and comprehensive, evidence-based programs that actually move retention metrics. What separates effective programs from checkbox exercises comes down to real access: can employees actually use these benefits, find them helpful, and feel supported enough to seek help without stigma?

 

Five steps to turn mental health benefits into retention tools

 

1. Take stock of your current mental health benefits

Start by understanding what you already have in place and how well those offerings are currently working. Many organizations discover that their mental health benefits look impressive on paper but aren't reaching employees effectively. An honest internal assessment reveals where you have real gaps and where you can build on existing strengths.

Survey your employees anonymously about their mental health benefit awareness and satisfaction. Ask specific questions: Do they know what's available? Have they tried to use these benefits? What prevented them from accessing support when they needed it? What concerns do they have about accessing these benefits through work?  The answers will point you toward the most impactful improvements.

Compare your mental wellness benefits package against industry benchmarks for organizations of your size. Look at access modalities, coverage levels, copays, provider network adequacy, program support, and hours, as well as program variety. Identify specific gaps: perhaps your therapy coverage has high out-of-pocket costs, or your provider network has long wait times, or the benefits offered are not fully supported, or you're missing support for specific populations like working parents or caregivers.

 

2. Remove barriers that prevent employees from getting help

According to NAMI's 2025 Workplace Mental Health Poll, 42% of employees worry that their careers would be hurt if they spoke up; only about half know how to access mental health care through employer-sponsored insurance; and 22% of managers don't know whether their employer offers mental health benefits.

Network adequacy matters more than most leaders realize. An insurance plan that covers mental health services means nothing if employees face eight-week wait times to see a provider. Review your provider networks regularly and hold your benefits vendors accountable for actual access with reasonable wait times.

Consider on-site or near-site counseling if you have physical office locations. Beyond the logistical convenience, it sends a powerful cultural message that mental health support is a normal, expected part of your workplace. Employees don't need to take half a day off to drive across town for an appointment. They can meet with a counselor during their workday without the added stress of complicated logistics.

Virtual mental health services have matured significantly over the past few years. They're proven, scalable solutions that reduce common obstacles like geographic limitations and scheduling conflicts. However, these services can still have barriers to access. Employers still need to look at the virtual wait times and qualifications of the people providing the service.

 

3. Design comprehensive programs that address diverse needs

Employee mental health needs vary significantly. Some people need ongoing therapy, while others benefit from digital tools for managing stress or improving sleep. Parents need support navigating their children's mental health challenges. Financial wellbeing is also a major issue, and some employees may benefit from financial therapy that focuses on tackling some of the behaviors that can lead to money management issues.

A comprehensive approach includes multiple layers of support. Your Employee Assistance Program remains a valuable crisis resource and gateway to services. Layer in teletherapy options, digital cognitive behavioral therapy tools, mindfulness and resilience programs, and specialized support for caregivers and parents. Sixty-five percent of employers now offer or are considering digital tools and self-guided resources to support emotional wellbeing.

Don't overlook practical benefits like paid mental health days. Normalizing time off for mental health, without requiring employees to pretend they have the flu, reduces stigma and signals that you take psychological wellbeing as seriously as physical health.

 

4. Equip managers to support their teams

Your managers are the front line of your retention strategy. Most departures happen because managers fail to support their teams, understand their challenges, or provide flexibility when people need it. Even the best benefits program fails if managers create an environment where people feel unable to use those benefits without judgment or career consequences.

Manager training on mental health needs to go beyond awareness. Give your managers practical tools: conversation frameworks for checking in with struggling team members, guidance on workload calibration that prevents burnout, and clear escalation protocols for situations that require professional support. Many managers avoid these conversations because they fear saying the wrong thing. Remove that barrier by giving them scripts and coaching.

Create manager toolkits that include resources they can reference quickly when an employee discloses a mental health challenge. Make it easy for managers to be part of the solution rather than part of the problem. When managers actively support mental health, employees feel safe accessing benefits and are significantly more likely to stay with your organization.

 

5. Make mental health and wellness part of your EVP

Your employee value proposition tells people why they should work for you instead of your competitors. Mental health benefits deserve a prominent place in that story, but only if you communicate them effectively. Many organizations invest in strong mental health programs and then fail to talk about them in ways that resonate with employees and candidates.

Start by articulating what makes your approach distinctive. Generic statements like "we offer mental health benefits" don't differentiate you. Instead, highlight specific elements: "All employees have access to virtual therapy with no copay and appointments available within 48 hours." Or "We provide eight paid mental health days annually, separate from PTO, because we treat psychological wellbeing as seriously as physical health." Specifics signal genuine commitment.

Build awareness through multiple channels. Feature mental health benefits prominently during onboarding when new employees are most receptive to information about resources. Include them in regular internal communications, not just during open enrollment. Share anonymized success stories (with permission) that demonstrate real impact. When employees see that colleagues have used these benefits without career consequences, stigma decreases and utilization increases.

 

Building your competitive advantage in talent retention

Mental health benefits represent one of the clearest opportunities to improve employee retention. The five-step approach above provides a practical roadmap that any mid-sized organization can follow.

Helios HR partners with mid-sized organizations to design and implement mental health benefits that measurably improve retention. We can help you with:

  • Strategic HR to audit your current mental health offerings and design comprehensive benefits aligned with your retention goals
  • Training and development services to equip your managers with the skills to support employee mental health effectively
  • Employee engagement surveys and analytics to establish baseline metrics and track the impact of your initiatives
  • HR Compliance guidance to ensure your mental health benefits meet parity requirements while avoiding common pitfalls
  • HR consulting to navigate the complex landscape of mental health benefit vendors and select solutions that deliver outcomes

The path to better retention through mental health benefits is clear. Schedule a consultation to discuss how we can help you turn mental health benefits into your competitive advantage.

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Additional resources

 

Unum — How it works – Behavioral Health — 2025 — https://www.unum.com/employers/solutions/care-hub/behavioral-health/how-it-works

Aon — Key Trends in U.S. Benefits for 2025 and Beyond — 2025 — https://www.aon.com/en/insights/articles/key-trends-in-us-benefits

NAMI — The 2025 NAMI Workplace Mental Health Poll — Feb 2025 — https://www.nami.org/support-education/publications-reports/survey-reports/the-2025-nami-workplace-mental-health-poll/