In 2025, employers are bracing for the steepest health care cost increases in over a decade—all while navigating the complex needs of working parents, employees with chronic conditions, and a diverse workforce. Amid these challenges, HR leaders have a powerful opportunity to provide meaningful mental health support that delivers real impact.
Now in its fifth year, our annual survey of HR and benefits leaders uncovers the top challenges and trends to help leaders succeed. With insights from 500 HR professionals across a variety of industries, this year’s survey highlights key factors shaping workforce mental health in the coming year. The findings resoundingly show that in the face of these challenging social, political, and economic times, comprehensive mental health benefits deliver measurable value. In fact, 79% of respondents report lower health care claims costs when offering robust mental health support.
As we look ahead, we’ve identified the key workforce mental health trends that will shape 2025—along with the strategies HR leaders need to stay ahead of the curve.
1. Surging health care costs put mental health benefits to the test
The health care landscape in 2025 has shifted dramatically. Soaring demand for costly drugs like GLP-1s, escalating employee stress, and increasing health care costs are colliding with stagnant or shrinking budgets. In response, HR and benefits leaders are evaluating mental health benefits as a way to support employees and achieve measurable ROI.
The impact is clear: Employers offering comprehensive mental health benefits are 13% more likely to report higher productivity, 17% more likely to boost employee engagement, and 10% more likely to achieve a clear return on investment compared to those with less robust programs. Effective mental health care is proving to be a critical driver of retention, engagement, and overall business success.
of benefits leaders say demonstrating ROI for mental health care is critically important to HR leadership
Compared to those with less robust programs, employers offering comprehensive mental health benefits are:
more likely to report higher productivity
more likely to boost employee engagement
more likely to achieve a clear return on investment
“ROI tied to mental health support comes in many forms, but impact on retention, engagement, and productivity are especially important to employers today. With mental health disability leaves on the rise and burnout being both prevalent and predictive of people disengaging at work or even leaving their jobs, mental health benefits vendors need to demonstrate impact on key people metrics in addition to health care claims costs.”
Joe Grasso, PhD
Vice President of Workforce Transformation at Lyra Health
2. Families’ mental health needs grow—and benefits rise to meet them
Being a working parent is hard enough, but when a child is struggling with their mental health, it can be all-consuming. Parents often find their time and energy pulled away as they search for the right care, leaving them stretched thin and less able to fully engage at work.
Children’s mental health challenges aren’t just impacting parents—they’re also driving up health care costs. Nearly half (49%) of benefits leaders report increasing health care claims for kids and teens, fueled by rising demand and a system that lacks the resources to meet families’ needs. Traditional EAPs and health plans frequently fall short, offering limited access to specialized care. This may explain why only about 20% of kids with a mental health disorder get help from a specialized provider.
Recognizing the critical need for accessible and effective support, 85% of benefits leaders say that mental health care for the entire family is essential.
of benefits leaders say health care claims for kids and teens are rising
say providing mental health care for the entire family is essential
report that employees struggle to find quality care for themselves or their families through EAPs
“Traditional approaches to childhood mental health care have failed our kids, as well as their parents and caregivers. It has been extraordinarily difficult for families to find specialists practicing evidence-based care, and parents are left poorly supported when coping with these difficult and complex family situations.”
Connie Chen, MD
Chief Operating Officer at Lyra Health
3. Managers hold the key to tackling mounting workplace stress—but need better tools
Stress levels are rising across the workforce, with no signs of slowing down. This year, 39% of HR and benefits leaders cite financial stress as a top-three factor affecting workforce mental health—more than double last year’s 18%. Managers play a key role in helping workers feel less stressed, with 85% of survey respondents saying managers are an integral part of their workforce mental health strategy.
But the stress of leadership takes its toll. Managerial stress was ranked as the third most significant factor (24%) negatively impacting workers’ mental health. While managers are uniquely positioned to recognize and address stress among their teams, our survey shows they’re often left without the resources they need to handle these challenges. Only 39% of HR and benefits leaders report offering mental health resources specifically for mangers’ mental well-being.
Top stressors negatively impacting mental health in the workplace:
Financial stress
Work-related stress and burnout
Managerial stress
Incivility or unruly behavior at work
Workplace policies (e.g., return to office)
The need for managerial support
of respondents think that “Managers are an integral part of our workforce mental health strategy”
of respondents agree that “We provide resources for managers to support mental well-being at work”
“It’s important to evaluate which aspects of work life may be impacting your workforce’s mental health, consult with managers and team members on what the data are saying, and collaborate on commonsense improvements to working conditions that can improve both well-being and performance.”
Joe Grasso, PhD
Vice President of Workforce Transformation at Lyra Health
Future-proof your workforce mental health strategy
Understanding workforce mental health trends can help add clarity in a year marked by complexity and uncertainty, so you can navigate rising health care costs and competing demands while proving the ROI of your mental health benefits. Supporting whole families, closing care gaps, and empowering managers to handle stress are key priorities for the year ahead.
These insights are just the beginning. Download the full report to uncover all the trends shaping workforce mental health in 2025—and actionable strategies to stay ahead.
Discover more 2025 workforce mental health trends, stats, and expert insights.
Joe Grasso, PhDVice President of Workforce Transformation at Lyra Health
Connie Chen, MDChief Operating Officer at Lyra Health
