Expanding Mental Health Benefits to Attract and Retain Talent

Mental health benefits have moved from a nice-to-have to a competitive necessity. Employees increasingly evaluate prospective employers based on mental health support, and inadequate coverage is a growing driver of voluntary turnover. Here is how to enhance your mental health benefits strategically and cost-effectively.

Assessing Your Current Coverage

Before expanding benefits, understand what you already offer and where gaps exist:

Health plan review

• What are the copays and coinsurance rates for mental health visits? Are they comparable to medical visit costs as required by the Mental Health Parity and Addiction Equity Act (MHPAEA)?
• How many in-network mental health providers are available in your employees' geographic areas? Provider network adequacy is a major barrier to access.
• Does the plan cover telehealth mental health visits? At what cost to the employee?
• What is the formulary coverage for psychiatric medications?
• Are there annual visit limits that, while technically compliant with parity requirements, effectively restrict access?

EAP assessment

• How many sessions per issue does your EAP provide? The industry standard of three to six sessions may be insufficient for employees dealing with serious issues.
• What is the actual utilization rate? Average EAP utilization is 5-8%. If your rate is lower, awareness and accessibility are likely barriers.
• How quickly can employees get an appointment? Wait times exceeding two weeks reduce the EAP's value for acute needs.
• Does the EAP offer digital or telehealth options?

Gap identification

• Survey employees (anonymously) about their mental health support needs and barriers to accessing existing resources
• Review short-term disability claims data for mental health conditions
• Ask managers what they observe in terms of employee stress and burnout

High-Impact Benefit Enhancements

Telehealth mental health platforms

Digital mental health platforms (such as Talkspace, BetterHelp for Business, Lyra Health, Spring Health, or Ginger) provide employees with access to licensed therapists and psychiatrists via text, video, or phone:

• Eliminate geographic barriers and reduce wait times
• Offer appointments outside business hours, reducing work disruption
• Reduce stigma since employees can access care privately
• Cost typically ranges from $3-$15 per employee per month for employer-sponsored access
• Some platforms offer both therapy and psychiatric medication management

Enhanced EAP

If replacing your EAP is not feasible, negotiate improvements:

• Increase the number of covered sessions (8-12 per issue provides more meaningful support)
• Add digital self-help resources and mental health apps
• Ensure the provider network includes diverse therapists who can serve employees from various backgrounds
• Negotiate faster appointment availability guarantees

Manager mental health training

Train managers to recognize signs of distress and respond appropriately:

• Mental Health First Aid certification (8-hour course available through the National Council for Mental Wellbeing)
• Internal training on having supportive conversations and making appropriate referrals
• Clear guidance on the line between supportive management and clinical intervention
• Training on their own mental health and self-care, since managers cannot support their teams while running on empty

Flexible time policies

Small policy changes can significantly support mental health:

• Allow mental health days without requiring a specific diagnosis or doctor's note
• Provide flexible scheduling so employees can attend therapy appointments during the workday
• Implement meeting-free blocks to reduce the constant demands of back-to-back video calls
• Encourage and model PTO usage at all levels of the organization

Cost Considerations

Mental health benefits do not have to be expensive to be effective:

Low cost (under $5 per employee per month):

• EAP enhancements
• Mental health awareness campaigns and resource guides
• Manager training programs
• Flexible scheduling policies

Moderate cost ($5-$15 per employee per month):

• Digital therapy platforms
• Mental health app subscriptions (Calm, Headspace for Work)
• Enhanced telehealth coverage

Higher cost ($15+ per employee per month):

• Comprehensive platform with therapy, psychiatry, and coaching
• On-site or virtual counselors
• Expanded plan benefits with reduced cost-sharing

ROI framework

Mental health investments generate returns through:

• Reduced absenteeism (employees with untreated mental health conditions miss significantly more work days)
• Reduced presenteeism (employees who are present but functioning below capacity due to mental health challenges)
• Lower healthcare costs (early intervention prevents more expensive crisis treatment)
• Reduced turnover (replacing an employee costs far more than mental health benefits)
• Reduced disability claims

Communication and Destigmatization

Even the best benefits are useless if employees do not know about them or are afraid to use them:

• Promote mental health resources regularly through multiple channels, not just during open enrollment
• Have leaders share their own experiences with therapy, stress management, or mental health challenges (when they are comfortable doing so)
• Normalize mental health conversations in team settings
• Ensure that using mental health benefits has no visible impact on an employee's standing (confidentiality is essential)
• Train HR staff to handle mental health-related inquiries with sensitivity and appropriate confidentiality

Measuring Success

Track these metrics to evaluate your mental health benefits investment:

• EAP and digital platform utilization rates
• Employee survey scores on mental health support and wellbeing
• Short-term disability claims for mental health conditions
• Absenteeism trends
• Voluntary turnover and exit interview themes
• Manager-reported observations of team wellbeing

Investing in mental health benefits is both the right thing to do for your employees and a sound business strategy that pays returns through improved productivity, lower turnover, and a stronger employer brand.