Mental health in the workplace is no longer a fringe issue—it's front and center. The numbers are startling: 76% of U.S. workers reported at least one symptom of a mental health condition in the past year, according to Mind Share Partners. Poor mental health can torch productivity, drain morale, and drive up turnover. Companies lose up to $1 trillion globally each year due to depression and anxiety. The message is clear: leaders who fail to act risk losing their team’s trust and effectiveness. Taking proactive steps isn’t just smart, it’s vital for building strong, resilient teams—and for business success.

Recognizing the Signs of Struggle

Spotting when someone on your team is struggling isn’t always easy. Mental health challenges can be hard to see and easy to misinterpret as laziness or disengagement. However, timely recognition can change the outcome for both employee and organization.

Key indicators include:

  • Decreased Productivity: If an employee’s work output or quality drops off suddenly, it’s a red flag. For example, a tech company noticed a high-performing developer began missing deadlines and committing code with more errors. Instead of reprimanding, the team lead reached out privately and discovered the employee was coping with anxiety. The simple act of asking, “Are you okay?” opened the door to support.
  • Increased Absenteeism: Mental health issues contribute to over 200 million lost workdays in the U.S. each year (Centers for Disease Control and Prevention). Unexplained absences or frequent sick days are a reliable warning sign.
  • Social Withdrawal: An outgoing marketer who now avoids team lunches and group chats may be struggling. Isolation often signals something deeper than shyness.
  • Changes in Demeanor: Look for mood swings, irritability, or sudden loss of confidence. One retail manager noticed their team’s usual “glue”—the cheerful assistant manager—became withdrawn and short-tempered. After a confidential chat, it turned out work and family stress overwhelmed the employee.
  • Difficulty Concentrating: Struggling to focus, missing deadlines, or confusion about instructions may all point to underlying mental health challenges.

No single sign means someone is unwell—but a pattern is reason to pay attention. Leaders should respond with empathy, not judgment.

Actionable Steps for Supportive Leadership

Supporting your team’s mental health doesn’t stop at awareness. It requires clear strategies that prioritize both protection and empowerment.

Foster Open Communication

Normalize conversations about mental health by addressing well-being frequently and openly in the workplace. When a Fortune 500 tech firm noticed signs of employee stress during the pandemic, it began every team meeting with a “wellness round.” Team members shared one sentence about how they were coping, helping to break the stigma and encourage openness.

  • Encourage managers to schedule regular, one-on-one check-ins that go beyond just work topics.
  • Offer anonymous internal surveys about mental health needs; use the feedback to adapt your approach.
  • Model vulnerability. When a leader admits to their own stress or the need for a mental health day, it sets the tone for the team.

Provide Access to Resources

Awareness is only useful if employees know what support is available and how to access it. An Accenture survey found that 67% of employees are more likely to stay with a company that offers clear mental health benefits.

Consider these actions:

  • Promote Employee Assistance Programs (EAPs) or counseling sessions in newsletters or on the company intranet. A financial services firm saw EAP uptake double after simply highlighting it on payslips.
  • Bring in mental health professionals to run stress management workshops or resilience training.
  • Introduce stipends for mental health apps or fitness memberships.
  • Encourage mental health days and respect boundaries—when a project wraps, publicly recognize the team and remind them to take time off.

Create a Supportive Work Environment

Environment shapes performance and wellness. Leaders have significant influence over daily stress levels and job satisfaction.

  • Promote flexible work arrangements, whether hybrid, fully remote, or staggered hours. A European manufacturing firm reduced absenteeism by 40% after introducing “quiet hours” when teams could focus without interruption.
  • Set a culture where using vacation days is encouraged, not frowned upon.
  • Provide access to quiet rooms or meditation spaces in the office.
  • Make workloads manageable—don’t reward chronic overtime, and watch for signs of burnout in your hardest workers.
  • Train managers to spot red flags and intervene early. At a logistics company, peer-led mental health ambassadors were introduced, giving teams an approachable first line of support.