Are employers offering too many mental health benefits?

Employees are increasingly demanding mental health solutions. In response, 94% of large employers (with 500 or more employees) say they have provided more solutions in the past few years to meet that demand, according to a study by Mercer. Yet mental health solutions are going unused. Could it be that myriad choices are just too overwhelming and difficult for most people to navigate. 

And the pace of change is not slowing, which means there is increasing pressure on businesses and their employees to perform while coping with global uncertainties, financial challenges, and other geopolitical stressors. Clearly, employers cannot afford to pull back on their support of their peoples’ mental health. 

But there is a pressing need to help employees take advantage of these benefits. A survey by Deloitte highlighted that 70% of employees find it difficult to navigate their mental health benefits, often leaving them without the support they need. 

I’m not suggesting that employers, benefits leaders, or benefits brokers and advisors are doing more harm than good. But this situation begs the question: Are we confusing employees with too many mental health options without the support to navigate them? And if the need for these resources is so high in theory, why aren’t employees using them in practice?

The issue of complexity

The core of the problem seems to be the overwhelming complexity of the mental health benefits landscape. In order to cover all the bases when it comes to mental health support, employers often provide a multitude of options: therapy sessions, crisis hotlines, wellness apps, and employee assistance programs (EAPs). Workers are expected to figure out what care they might need or which employer-provided solution to use. Rather than creating a clear path to care, the offerings become a disjointed approach that leaves employees feeling confused and overwhelmed.

While 83% of people will experience mental health challenges by middle age, many are reluctant to use the resources available to them. One major reason is the intimidating process of navigating clinical care, especially when individuals are already feeling vulnerable. Imagine suffering from anxiety and then being further frustrated by having so many options, struggling to book appointments, or knowing whether a solution is the right choice. An over-reliance on traditional mental health care pathways, which often steer employees directly into therapy, only adds to the problem. Although therapy can be extremely beneficial, it’s not always the right fit for everyone. In fact, more than 70% of people who are offered therapy end up not wanting it, highlighting the need for more personalized and varied options.

The consequences of low engagement

When employees don’t engage with the mental health benefits available to them, the repercussions can be serious. Not only do individuals miss out on the care they need, but organizations also suffer from this disengagement. Untreated mental health issues can lead to absenteeism, presenteeism, and unwanted staff turnover, driving up costs related to recruitment, training, and lost productivity. Safety and security risks can also increase in environments where mental health issues impact employee judgment or reaction times, adding another layer of concern for employers.

Given this context, simply offering more benefits isn’t the answer. Instead, employers should focus on making it easier for employees to access and navigate the resources available to them. Investing in mental health benefits helps employers with talent attraction, retention, and supporting their workforce so they can be productive. 

Benefits advisors (brokers and consultants) often do a great job of laying out options that will support these talent and business imperatives. It’s not their fault that the solutions are going underutilized, but we all share responsibility in simplifying the mental health solutions landscape. 

Rethinking mental health support

To genuinely support employees’ mental health, a shift in strategy is needed — from reactive, crisis-driven care to a more comprehensive, proactive approach that addresses the full spectrum of mental health needs. Here are five key steps employers can take:

• Simplify access. One of the most effective changes employers can make is to simplify how employees access mental health resources. By offering a unified digital platform that serves as a single entry point to all available services, employers can significantly reduce the confusion that employees face. Such a platform should provide a range of evidence-based services, from preventive care and self-guided tools to clinical treatment, all within an easy-to-use interface.

• Personalize care. Mental health is highly individualized, and the solutions offered should reflect this. Employers should prioritize platforms that allow for personalized care journeys, which adapt to each employee’s unique needs. Whether someone requires early intervention, ongoing therapy, or self-care tools, the solution should seamlessly guide them to the right resource. This removes the burden of choices that employees face when they feel they need mental health support. 

• Emphasize prevention. Prevention is always better than cure, and this is especially true for mental health. Extending support across the continuum — from self-care and prevention to early intervention — can help employees maintain their wellbeing before issues escalate. Clinically validated tools that employees can use on their own are essential to preventing mental health issues from worsening. Benefits leaders and the advisors who support them need to factor this approach into benefits planning. 

• Choose quality over quantity. With so many mental health solutions available, it’s important for employers to partner with vendors that prioritize clinical rigor and ethical practices. Employers should ensure that the solutions they provide are not only effective, but also grounded in evidence-based practices.

• Use data to improve outcomes. Data can play a key role in improving mental health outcomes. A comprehensive digital platform should offer real-time, population-level insights that allow employers to monitor the effectiveness of their mental health strategies. This data can inform decision-making and help refine approaches to maximize the impact of mental health investments.

A strategic path forward

Employers have a unique opportunity to transform how mental health care is accessed and utilized in the workplace. By simplifying access, personalizing care, and focusing on prevention, employers and their benefits advisors can move away from the current fragmented approach to one that truly meets the needs of today’s workforce. This shift isn’t just the right thing to do; it’s also a smart business move. Healthier employees are more engaged, productive, and loyal.

Ultimately, it’s not about offering more benefits but about offering the right benefits and guiding employees through a personalized path. We need an approach that employees can easily access, understand, and use to maintain their mental wellbeing. With the right approach, employers can bridge the gap between providing mental health resources and ensuring those resources are effectively utilized, creating a more resilient and thriving workforce.

Dr. Oliver Harrison, founder and CEO of Koa Health, is a trained neuroscientist and MD psychiatrist, plus US National Board in Public Health (Johns Hopkins).