Key Mental Health Trends from 2024 to Guide Your 2025 Strategy

As the year comes to a close, one insight is clear: mental health is no longer a secondary consideration—it’s a cornerstone of effective workforce strategy. In 2024, organizations across industries recognized the direct business impact of prioritizing employee well-being, from tackling talent shortages to enhancing retention and fostering resilient workplace cultures.

Insights from a recent conversation featuring Dr. Jessica Watrous, Director of Clinical Research & Scientific Affairs at Modern Health, and Chris Mueller, Managing Director of Workforce Solutions at RSM, highlight the evolving role of mental health in driving both cultural and financial outcomes.

This article leverages their expertise to explore key trends and actionable strategies to carry forward into 2025, including:

• How mental health benefits can address talent shortages and improve retention.
• The role of workplace connection in combating loneliness and disengagement.
• Building equity and accessibility in mental health care.
• Using ROI metrics to solidify the business case for mental health investments.

By reflecting on 2024's successes and challenges, HR leaders and benefits decision-makers can build a more resilient, engaged, and productive workforce in the year ahead.

View the full on-demand discussion on HR trends.

1. Tackle Talent Challenges with Well-Being at the Core

With 77% of organizations struggling to recruit full-time employees in 2024, the talent shortage has become a top concern for HR leaders and business executives. The challenge isn’t simply finding more candidates—it’s about creating workplaces that attract, engage, and retain top talent in a competitive landscape.

In this clip, Dr. Watrous highlights the connection between RSM’s HR trend data and workplace well-being:

This perspective is resonating more than ever. Today’s workforce—particularly younger generations and employees seeking flexible environments—prioritizes well-being when evaluating employers. A striking 92% of employees say that access to mental health resources is critical in their workplace, underscoring the role of these benefits in building a competitive edge.

Take Action: Position Mental Health at the Core of Your EVP

To meet the moment, HR leaders and benefits consultants can elevate their Employee Value Proposition (EVP) by integrating mental health as a cornerstone of their strategy. Consider:

• Providing access to evidence-based mental health care tailored to diverse needs.
• Implementing flexible work arrangements to support employee well-being.
• Building an inclusive culture where mental health conversations are encouraged and supported.

2. Resilience: A Strategy for Retention

Employee turnover continues to challenge organizations across industries, and burnout is emerging as a critical driver. Often called the silent productivity killer, burnout disrupts engagement, lowers morale, and increases the risk of attrition. A recent Gallup study found that 76% of employees experience burnout on the job at least sometimes, underscoring the need for proactive solutions.

Burnout affects more than individual employees—it erodes team cohesion, productivity, and overall organizational resilience. Companies that invest in mental health resources not only support employee well-being but also strengthen their ability to navigate disruptions and retain top talent.

In this clip, Dr. Watrous explores the relationship between retention and mental health in the workplace:

Resilience-building programs are among the most effective strategies for mitigating burnout. From stress management coaching to preventive digital tools, organizations are seeing measurable benefits from offering employees practical support to manage their mental health challenges. These initiatives don’t just help individuals—they contribute to a more adaptable, engaged workforce.

Take Action: Foster a Resilient Workforce

To prevent burnout and retain talent, focus on cultivating resilience across your organization. Here’s how:

• Equip employees with evidence-based tools, such as stress management guides, workshops, and coaching programs, to strengthen their ability to cope with challenges.
• Create opportunities for open conversations about mental health to reduce stigma and encourage proactive use of resources.
• Ensure workloads are sustainable, especially during periods of organizational change, to prevent fatigue and disengagement.

3. Foster Connection to Improve Health Outcomes

In today’s distributed work environments, loneliness has extended beyond the individual to become a measurable business challenge. According to the U.S. Surgeon General, loneliness has been linked to a 37% increase in absenteeism, lower employee engagement, and a 12% decrease in productivity. 

The financial impact is substantial for organizations: disconnected employees cost U.S. companies up to $406 billion annually in lost productivity.

In this clip, Mueller explores why he values dedicated in-person time to foster connection even within remote-first organizations:

The Business Case for Connection

Employees who feel isolated are more likely to disengage, experience burnout, and ultimately leave their roles. This reality makes fostering connection not only a moral priority but also a strategic imperative.

The good news? Companies that actively create opportunities for belonging see real returns. Intentional efforts to foster connection—from structured activities to casual conversations—can lead to stronger collaboration, higher engagement, and improved well-being across the workforce.

Take Action: Build Bridges with Belonging

To combat loneliness and create a culture of connection, organizations should prioritize strategies that address both virtual and in-person needs:

• Encourage Micro-Connections: Integrate quick, meaningful interactions into daily workflows. Start meetings with well-being check-ins or build time for casual conversations into virtual meetings.
• Offer Structured Support: Group sessions, like Modern Health’s Circles, provide employees with spaces to connect, share experiences, and build skills for navigating workplace challenges. Peer-reviewed research has demonstrated that access to services like these can reduce loneliness.
• Equip Employees with Resources: Share self-guided tools, like Modern Health’s Take Action: Social Connections course, to empower employees with strategies to strengthen personal and professional relationships.

4. Promote Transparency and Trust for Stronger Engagement

In an evolving workplace landscape, trust and transparency aren’t just nice-to-haves—they’re critical drivers of employee satisfaction, engagement, and retention. According to Mental Health America's 2024 Workplace Wellness Research, transparent communication and supportive management are closely linked to healthier, more productive work environments.

The data reinforces this:

• 86% of workers prioritize trust and transparency as critical components of their relationship with their employer.
• Employees who feel confident expressing their opinions are more likely to advocate for their own needs, contributing to a culture of empowerment and psychological safety.

In this clip, Mueller explains how transparency, organizational culture, and ESG and DEIB initiatives are interconnected: 

Turning Transparency into Action

Building a culture of transparency requires more than open communication—it demands actionable support for employee well-being. Research shows that when employees feel their concerns are acknowledged and acted upon, they are more engaged and less likely to leave their roles.

One key lever for fostering trust is equipping managers with the tools they need to address mental health confidently. Leaders who model vulnerability and normalize discussions about well-being can break down stigma and create an environment where employees feel supported, valued, and empowered.

Take Action: Empower Managers as Mental Health Champions

To build trust and transparency in your workplace:

• Provide Targeted Training: Offer managers training on mental health awareness and strategies for fostering psychological safety, ensuring they can lead meaningful conversations with confidence.
• Normalize Mental Health Conversations: Encourage leaders to integrate regular well-being check-ins into their routines to create a safe space for employees to share concerns.
• Use Employee Feedback: Conduct anonymous surveys to identify gaps in communication and well-being support, then act on those insights to refine your approach.

5. Champion Equity in Mental Health Support

As workforce demographics continue to diversify, mental health care must evolve to address the unique needs of employees across roles, regions, and cultural contexts. A generic, one-size-fits-all approach falls short of fostering true engagement and inclusion. Equity in mental health care is a strategic necessity for cultivating trust and belonging.

The Case for Tailored Mental Health Solutions

Mental health challenges differ widely across cultural and regional contexts, and employees expect solutions that reflect these nuances. Research by the American Psychological Association highlights that culturally tailored mental health interventions are significantly more effective at driving engagement and improving outcomes.

“When we think about mental health care in a workplace, it’s important that employees see themselves reflected in the resources that are available to them.” – Dr. Jessica Watrous, Director of Clinical Research & Scientific Affairs at Modern Health

When organizations invest in culturally relevant care, they signal a deep commitment to their workforce, which in turn strengthens employee trust and organizational resilience.

Bridging the Equity Gap

Closing disparities in mental health support requires intentional action. To build more equitable offerings, organizations can leverage tools like surveys and listening sessions to identify gaps and refine their strategies. Specific actions to consider include:

• Expanding Multilingual Resources: Make mental health care accessible for global teams by offering services in employees’ preferred languages.
• Addressing Cultural Stigmas: Provide pathways such as one-on-one coaching or anonymous digital tools that align with cultural attitudes toward mental health.
• Supporting Underrepresented Groups: Tailor resources for women, BIPOC employees, and those in high-stress or nontraditional roles, where unique challenges may arise.

Take Action: Advance Equity Through Employee Insights

Use year-end surveys and listening sessions to uncover disparities in access and engagement with mental health benefits. Analyze responses by demographics, roles, and geographies to identify gaps and refine your offerings for inclusivity. Empower managers and HR teams with the tools to support equity, ensuring every employee feels valued and understood.

6. Elevate Mental Health Strategies with Whole-Person Care

Mental health benefits have become a cornerstone of organizational strategy, but many programs stop short of addressing the full scope of employee well-being. Mental health isn’t confined to workplace stress—it intersects with every dimension of a person’s life. From family responsibilities and financial concerns to navigating major life changes, a holistic approach is essential for meaningful support.

The Ripple Effect of Life’s Challenges

Employees’ mental health is deeply influenced by factors both inside and outside the workplace. Recent findings highlight the need for whole-person care:

• 52% of employees report feeling stress related to their finances.
• 41% of parents say that most days they are so stressed they cannot function. 
• Approximately half of U.S. adults report experiencing loneliness.

By addressing mental health through a whole-person lens, organizations show employees they are valued not just as workers but as individuals. This builds trust, fosters loyalty, and enhances both well-being and performance.

From Prevention to Crisis Support

Organizations that offer a spectrum of mental health resources—spanning preventative care to crisis intervention—are better equipped to meet employees’ diverse needs. Comprehensive programs also support employees in managing challenges like family transitions, caregiving responsibilities, or financial planning, which all contribute to a healthier, more resilient workforce.

Take Action: Make Whole-Person Care a Priority

• Expand Benefits Beyond the Individual: Introduce family-inclusive offerings, such as counseling for dependents or parental coaching.
• Offer Life-Stage Support: Provide financial wellness tools, career coaching, or resources tailored to caregiving and major life transitions.
• Normalize Access Through Communication: Develop targeted campaigns that highlight available resources and break down barriers to seeking help.

7. Prove the Value: ROI of Mental Health Investments

The link between mental health support and business performance has never been more evident. Companies prioritizing comprehensive mental health benefits are reaping measurable rewards, from reduced absenteeism to higher engagement and satisfaction—factors that directly influence productivity and profitability.

The Numbers Speak

Organizations that offer robust mental health programs see:

• 41% lower absenteeism rates, enabling greater continuity and output.
• 25% higher employee engagement, a critical driver of innovation and morale.

Turning Awareness into Action

Offering mental health benefits is just the starting point. The most effective programs ensure employees know about, trust, and use these resources. This means going beyond availability to focus on awareness, accessibility, and regular communication.

In this clip, Mueller encourages HR leaders to put in place programs sought by employees within their organizations: 

By actively promoting the value of mental health offerings, organizations can foster a culture where employees feel empowered to seek support. This not only strengthens individual well-being but also drives engagement and organizational success.

Take Action: Elevate Participation and Visibility

• Spotlight Success: Share data-driven results and employee testimonials to demonstrate the program’s impact.
• Leverage Technology: Use dashboards to track and showcase participation rates, reinforcing the benefits of engagement.
• Normalize Conversations: Run campaigns that emphasize mental health as a priority through leadership endorsements, peer advocacy, and accessible resources.

What 2024 Taught Us About Mental Health—and How to Act in 2025

As organizations map out their strategies for the coming year, mental health benefits are proving to be pivotal in driving business outcomes, from reduced absenteeism to enhanced productivity and retention. 

Building the Business Case: Key Data Points

The financial and operational impact of mental health programs is clear:

• Untreated mental illness is costly: It accounts for 56% of employer health care spending, with significant losses tied to absenteeism and lower productivity. For example:some text
  • Employees with Major Depressive Disorder incur an annual cost of $4,426 due to lost work days.
  • Those with Bipolar Disorder face an even higher cost at $9,619 per worker annually.
• Prevention pays off: Every $1 invested in treatment for depression and anxiety yields a $4 return through better health and productivity outcomes.
• Improved retention: Modern Health's analysis shows that retention rates are 5.5% higher among employees who engage with mental health support than among those who do not.

Beyond Metrics: Fostering Resilience for Sustainable Success

The value of mental health investments extends beyond immediate cost savings. Companies that prioritize mental well-being cultivate a resilient workforce—one that is better equipped to handle challenges, adapt to change, and drive innovation. This approach fosters trust, engagement, and long-term organizational success.

Take Action: Make Mental health a Measurable Part of Your 2025 Strategy

• Track key indicators such as engagement, absenteeism, and health care claims to quantify the impact of your initiatives. 
• Strengthen your programs by combining clinical care with preventative resources, including coaching and digital tools, to optimize both employee well-being and business outcomes.

Your 2025 Workforce Mental Health Strategy Starts Here

2025 presents an opportunity to turn insights into action. Prioritize mental health in your workforce strategy to not only meet challenges head-on but to lead your industry with a healthier, more engaged workforce.

Take the Next Step: Partner with Modern Health to create a mental health strategy that drives meaningful outcomes. Schedule a call with our experts to learn more.‍

Gain Deeper Insights: Watch the full webinar on mental health strategies for workforce success for additional perspectives from Chris Mueller and Dr. Jessica Watrous.