Over the past three years, employee programs have boomed as leaders vastly expanded their health and well-being benefits. Yet while employers have spent nearly 20% more on their employees since 2020 according to year-over-year employment and wage calculations from the U.S. Bureau of Labor Statistics, employees still report that they are not receiving the support they need. The workforce is stressed and overwhelmed, and employee disengagement and turnover can cost a company millions in lost productivity annually.

In speaking with company leaders across a wide range of industries, it is increasingly evident to me that the mental health crisis is the most significant issue facing the workforce. As leaders, we need to prioritize employee mental health. When done right, taking action strengthens the employee-employer relationship, boosts engagement, and results in a competitive advantage in the marketplace—while also delivering on the bottom line.

The challenges brought on by the pandemic—and the turbulent economic environment that has followed—emphasize the critical role mental health plays in driving business success. Organizations that use the right well-being strategies are more than twice as likely to outperform their peers financially and three times more likely to engage and retain employees, according to research by the Josh Bersin Co., a research and advisory company dedicated to talent management and human resources.

EMPLOYEES IN ALL INDUSTRIES ARE STRUGGLING

I have witnessed firsthand the challenges our workforce faces, and I hear the same from the companies we work with. Corporate leaders across all sectors say employees in all generations are struggling mentally.

To gain deeper insight into the state of employee well-being around the world, we recently conducted our annual Alight International Workforce and Wellbeing Mindset Study that surveyed 2,000 U.S. and 2,000 global employees. We gathered insights from people working in a range of sectors, including manufacturing and energy production, retail, business services, healthcare, and technology.

The results revealed that a staggering 80% of employees experience stress. In the U.S. alone, 75% of workers say they have undergone adverse effects of job-related stress, with sleep disruption (53%), low morale (43%), and anxiety attacks (37%) having the biggest effect on their well-being. Nearly one-third of U.S. workers believe their job negatively affects their mental health.

At the same time, less than half of workers feel supported by their employers. Only 41% of employees believe their companies genuinely care about their well-being, and just over a quarter say their total benefits meet their family’s needs.

Within this context, how do leaders transform their employee experience in a way that will improve mental health, increase productivity, and ensure their companies remain strong and continue to grow?

AI CAN HELP

Companies can offer comprehensive, AI-driven mental health support programs to remove barriers individuals face when seeking the support and care they need. These tools are able to analyze data quickly and provide real-time resources in a way that was not previously possible. They allow individuals and families to connect with the right behavioral health experts and resources to understand their symptoms and receive the right diagnoses, treatments, and medications that meet their needs. They can also help people find providers at lower costs.

Through the use of AI, companies can also improve engagement with their employee assistance programs, which provide resources that encourage individuals to better their health. Some companies have administered virtual, easy stress assessments, which prompt employees to take steps to address high or moderate stress levels and improve their mental health.

Companies and officers—especially chief human resources officers and chief financial officers—are under intense pressure from boards and shareholders to deliver for their employees. These leaders have invested billions in trying to solve the mental health crisis. It’s time to step back, consider what is and isn’t working, and chart a new path forward.