Jump to section
Everyday challenges like relationship struggles, grieving a loss, financial stress, or caring for a loved one don’t simply vanish when employees start their workday. These external pressures can quietly erode mental health and job performance, leading to a ripple effect throughout your organization.
For HR and benefits leaders, recognizing and addressing these issues is more than just a compassionate response—it’s strategic imperative.
By identifying signs of struggle and implementing effective support strategies, you can enhance employee well-being and productivity. Understanding and addressing the full scope of your employees’ lives is key to creating a workplace where everyone can thrive.
Understanding the impact of everyday stressors on employee mental health
Employees commonly face challenges outside of work, including physical health issues, mental health struggles, family responsibilities, and financial stress.
Physical health problems like chronic illnesses or minor ailments can drain energy and focus. At the same time, the need for doctor’s appointments or recovery time can disrupt work schedules and increase stress.
Mental health concerns—such as anxiety, depression, and burnout—are on the rise, often showing up as fatigue, difficulty concentrating, and mood swings, all of which can significantly impact performance and attendance. In fact, depression and anxiety cost the global economy $1 trillion annually in lost productivity.
Family responsibilities, especially for those caring for young children or aging parents, add complexity to the workday. About 16% of employees are caregivers, and the strain can lead to stress, decreased work availability, and feelings of guilt for not being fully present at work or home.
Financial stress is another widespread issue, with nearly 78% of full-time workers living paycheck to paycheck. Money worries can cause anxiety and distract employees from work, sometimes leading them to take on additional jobs.
These pressures can manifest in decreased productivity, declining work quality, or social withdrawal. This could be increased absenteeism, reduced meeting participation, or reluctance to turn on the camera in a virtual environment. The virtual work setting also brings challenges like loneliness, social isolation, and heightened self-consciousness from constantly being on camera.
The role of leadership in supporting employee mental health
Supportive leaders can help shape a workplace culture where mental health is prioritized and employees feel valued and understood. Throughout my career in HR, I’ve seen three helpful practices that HR leaders can put in place.
Implementing consistent policies for employee well-being
Rather than leaving it to individual leaders to make their own policies, implement universal policies that are clearly outlined in an employee handbook. By offering bereavement leave, mental health days, and generous PTO, organizations can help establish a culture that supports diverse needs. These policies can provide essential support in challenging times and signal to employees that they matter as people.
Training managers to support mental health
Companies often promote competent people without giving them adequate human management training. Learning to take a coach approach, where leaders actively listen, provide guidance, and foster a supportive environment, can help them recognize signs of stress and distress early so they can offer support or direct employees to appropriate resources before issues escalate.
Offering robust mental health benefits
Benefits that include therapy and coaching offer employees the opportunity to process their challenges with someone external who is genuinely invested in their success without being dependent on it. By offering mental health benefits, organizations help reduce barriers to support, whether that friction be cost, time spent searching for a provider, or stigma. When therapy is a standard, on-offer benefit, it makes it a natural part of the workplace culture.
Strategies for leaders to support employee well-being
Creating a supportive work environment requires intentional actions and thoughtful leadership. It’s not just about providing resources, but also about how we engage with our employees daily.
Active listening
Creating a safe space for employees to share their struggles is crucial for fostering a supportive work environment. It starts with active listening—fully focusing on the person speaking, acknowledging their feelings, and responding with empathy and without judgment.
Regular check-ins and one-on-one meetings are essential, even when schedules are busy— especially then. And even if you feel like you have nothing to talk about, use the meeting as an opportunity to connect on a deeper level beyond just tasks and goals.
Taking the time to genuinely ask how someone is doing can make all the difference in how valued they feel. Even brief conversations can foster a sense of support, particularly in remote work settings. And by ensuring confidentiality (when possible), you strengthen the safe and trusting environment you’re committed to creating.
Flexibility and accommodation
Offering flexible work arrangements—like flexible hours, remote work, or hybrid options—can make a big difference for employees juggling external pressures like caring for kids, aging parents, or medical appointments. These accommodations show that you genuinely care about their well-being and value their unique needs.
Encouraging a healthy work-life balance is important, too. Make sure your team feels comfortable taking vacations and remove any expectation to be available outside of working hours. This should be culturally embraced, with leaders setting the example—if it’s a Saturday and you’re tempted to send that email, schedule it for Monday morning instead.
Finally, consider policies that allow sick time or PTO for mental health days—whether half-days or full days. This sends a clear message that mental health is just as important as physical health and that your organization is committed to supporting overall well-being.
Providing resources and support
As a leader, you play a crucial role in ensuring your team knows about and feels comfortable using your company's EAPs and benefits, including therapy and coaching. I often hear my clients say, “I didn’t even know we had these benefits.” Regularly remind your team about the benefits available to them—whether through internal newsletters, all-hands meetings, or integrating an overview into management training.
Specific scenarios and how leaders can respond
As HR and benefits leaders, we’re often the first point of contact for employees navigating some of the most challenging moments of their lives. Our role extends beyond admin functions to providing compassionate support and practical solutions, especially in sensitive scenarios.
Supporting employees through grief and loss
It's crucial to have a comprehensive bereavement leave policy that accommodates diverse family structures. Leaders should also be trained to support grieving employees and ensure they feel comfortable taking the necessary time.
The leader's responsibility is to manage their workload during this period, allowing them to fully disconnect and process their loss. That will allow them to return more ready for work rather than struggling to balance grief with job responsibilities. This is another great opportunity to remind them of the mental health resources available.
Addressing the impact of physical injuries
Supporting employees with physical injuries requires a holistic approach to addressing physical and mental well-being. Engaging in an interactive process with open communication will help you develop a flexible return-to-work plan tailored to their recovery needs, including appointment accommodations.
The mental health aspect of physical injury can get missed a lot, but it’s very common, with lingering questions like, “Who am I? Who can I become?” The toll that takes is often overlooked, and leaders need to recognize that.
Managing financial stress among employees
This one can be tricky. Recognizing and addressing financial stress on employees’ mental health requires empathy and practical support. While a raise isn't always possible, offering retirement benefits and financial planning workshops as part of their benefits package can help employees budget, save, and plan for the future.
When discussing finances, especially with lower-earning staff, it’s important to be mindful of how you talk about money. Leaders might also want to consider how they talk about or show their wealth—maybe don’t mention all the details of that trip to St. Barts.
Handling family issues with empathy
As HR leaders, we understand that family comes first, especially when it involves caring for a sick loved one. Balancing empathy with business needs is key, and it’s our responsibility to provide flexible options that support employees during challenging times.
Implementing family-leave policies and offering remote work options can make a difference, allowing parents to focus on their family responsibilities without added stress. By providing these accommodations, you can show employees that you value them not just as workers, but as whole people with important lives outside of work.
Responding to employees after receiving tough news
When an employee comes into work after receiving tough personal news, responding with compassion and a willingness to be flexible is essential. Train managers to recognize and support employees in crisis, whether by lending a compassionate ear, reminding them of their mental health benefits, helping them reschedule meetings, or supporting them in taking time off.
Addressing mental health stigma in the workplace
To reduce mental health stigma, it's important to make mental health conversations a natural part of your culture. Leaders can set the tone by sharing their experiences with stress management, coaching, or therapy to model that seeking help is okay.
Just like we encourage physical exercise to maintain our health, we should promote mental health resources as proactive tools for overall well-being. As part of this effort, launching anti-stigma campaigns and mental health awareness programs can further normalize these conversations and resources.
Creating a thriving workplace amid everyday stressors
I want to revisit the core HR concepts that form the foundation of a supportive workplace: consistent policies, effective management training, and robust employee benefits. By implementing universal policies—like mental health days, bereavement leave, and generous PTO—we can ensure all our employees get the support they need.
Equipping leaders with management training that emphasizes the human side of leadership, such as active listening and taking a coach approach, empowers them to recognize and address signs of stress early. Coupled with robust benefits, including therapy and coaching, we can help create a workplace where mental health is prioritized, barriers to support are reduced, and employees feel valued as human beings.
Empower your employees to overcome personal stressors with four leadership strategies that build trust and psychological safety.
About the Author
