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Exploring the Benefits of Mental Health Days in Employee Packages 

By: Benefits by Design | Tuesday October 15, 2024

Updated : Tuesday October 22, 2024

In today’s workplace, employee well-being has become a top priority for businesses of all sizes. Offering mental health days in employee packages is one way that companies are addressing this need. These days allow employees to step away from work to focus on their mental well-being, reducing burnout and stress.  

In fact, the inclusion of mental health days benefits both employers and employees. Employees return to work feeling refreshed and more productive, while employers benefit from higher morale and better retention rates. With growing mental health awareness, more companies recognize the value of supporting their team’s well-being through flexible, supportive benefits. 

Why mental health matters in the workplace 

Mental health is a key factor in creating a productive and positive workplace. Employees who feel mentally well are more focused, engaged, and motivated in their roles. On the other hand, poor mental health can lead to burnout, absenteeism, and lower performance.  

Supporting mental health in the workplace helps reduce stress and anxiety, which fosters a healthier, happier team. Employers should create a culture where employees feel comfortable discussing their mental health needs. This can improve morale and strengthen the workforce. Offering benefits like mental health days and access to resources creates an environment that values well-being, which, in turn, leads to better outcomes for both the employees and the organization. 

A seemingly sad woman in a pink blazer looking at her desk. 
Poor mental health of employers makes it harder for the whole team to function properly and isn’t beneficial to the employers either. 

Exploring the benefits of mental health days in employee packages 

The benefits of mental health days in employee packages are numerous. Mental health days give employees the opportunity to recharge, which helps prevent burnout. When workers can take a day to focus on their well-being, they return more focused and engaged. For this reason, mental health days can lead to long-term gains by reducing the risk of exhaustion and decreased performance. By addressing mental health concerns early, businesses can reduce long-term absenteeism and create a more balanced, resilient workforce.  

Increased productivity and employee satisfaction 

Increased productivity and employee satisfaction are closely linked to mental wellness. When employees are mentally well, their productivity is positively affected, and they tend to be more focused. On the other hand, poor mental health can cause issues like: 

A man in a white shirt looking at frustrated documents on his table while his colleagues stand behind him.

These signs of poor concentration can negatively impact workplace performance. Similarly, offering mental health days can directly improve job satisfaction. When employees know they have the support to care for their mental health, they feel valued and appreciated, boosting morale. A mentally healthy workforce performs better and is more loyal, reducing turnover rates and creating a more positive work environment. Supporting mental wellness leads to long-term productivity gains. 

Boosting employee retention rates 

Employee retention rates can be affected by how well companies support their workers’ mental health. Offering mental health days shows employees that their well-being is valued, which leads to increased loyalty and lower turnover rates. Then again, employees who feel burned out and unsupported are more likely to leave in search of a healthier work environment, even if it means moving to another city or country. The reverse is also true – if they feel like a company is offering ideal benefits, they might be more inclined to relocate. Even the expenses and upheaval of moving trumps staying at a company which does not care for their employees’ mental health. With the assistance of experienced movers employees can make this job change more manageable.  

In other words, companies offering mental health benefits gain a competitive edge in attracting top talent. These benefits signal to potential employees that the company prioritizes their well-being, making it an attractive workplace. By providing employees with days to focus on their private life, employers can strengthen retention while positioning themselves as a desirable workplace for the best candidates. In the long run, this means that employees will be more loyal. 

Cost benefits for employers 

If employees provide their workers with time to address mental health concerns, companies can help prevent more serious issues from developing. This reduces the need for expensive healthcare interventions down the line, lowering overall healthcare costs.  

Another key point is the long-term financial benefits of having healthier, more productive employees. When employees are mentally well, they take fewer sick days, perform better, and remain loyal to the company. This leads to lower turnover rates and fewer expenses related to hiring and training new staff. Investing in mental health days is a cost-effective strategy that improves both employee well-being and a company’s financial health. 

The role of leadership in supporting mental health days 

Leadership plays a vital role in supporting the use of mental health days. Management can encourage employees to take these days by fostering a workplace culture where mental health is openly discussed. By leading by example—such as taking mental health days themselves—managers signal that it’s acceptable and beneficial for everyone.  

A woman smiling and looking at other people in the office. 
A leader should set a positive example with their attitude and inspire others. 

Of course, creating an open dialogue around mental health helps employees feel comfortable addressing their needs. When leaders prioritize mental well-being, employees are more likely to follow suit. This not only improves individual well-being but also boosts overall workplace morale. When mental health support comes from the top, it reinforces the message that taking care of one’s mental health is valued within the organization. 

Strategies for implementing mental health days effectively 

Implementing mental health days effectively requires clear policies and thoughtful guidelines. Above all, it’s important to communicate to employees how mental health days can be used and the benefits they offer. Providing clear instructions on requesting mental health days ensures that everyone has equitable access to them.  

With this in mind, employers should establish fair policies that allow mental health days to be taken without fear of stigma or judgment. Regular reminders about the availability of these days, along with leadership setting a positive example, will encourage their use. Additionally, maintaining flexibility and confidentiality when employees take these days fosters a supportive environment. By focusing on these strategies, employers can roll out mental health days in a way that benefits both the employees and the organization. 

Conclusion 

In conclusion, incorporating mental health days in employee packages offers a significant advantage for both employees and employers. By prioritizing mental wellness, companies can reduce burnout, improve job satisfaction, and boost overall productivity. This approach also helps to retain top talent, lower healthcare costs, and create a more positive work environment. When leadership actively supports and promotes mental health days, it sets a tone of openness and care within the company. Ultimately, implementing mental health days as part of your employee benefits package is not just a trend but a smart, long-term investment in the well-being of your workforce and the success of your business. 

Find out more about helping employees with occupational exhaustion.

Dealing with Employee Burnout: How Workplaces Can Spot the Signs, and Solutions