When we think of workplace safety, most picture hard hats, safety signs, or OSHA compliance. However, another side to safety is just as important—mental health.

Employee mental health affects everything from productivity to how safe a workplace is. If your team is stressed, burned out, or struggling emotionally, they’re more likely to make mistakes, get injured, or miss work. That’s why supporting mental health isn’t just a nice thing to do—it’s a smart business move.

Mental Health Impacts Safety 

An employee who’s stressed, overwhelmed, anxious, or depressed might have trouble focusing or making good decisions. That can lead to serious accidents, missed deadlines, or costly errors. Mental health struggles can also show up as more sick days, low morale, or even high turnover.

All of this affects a company’s bottom line. For business owners, poor mental health can mean more claims, higher premiums, and lost productivity. On the other hand, companies that care for their employees’ mental health often see fewer insurance claims and a stronger, more resilient team.

The Real Cost of Ignoring Mental Health

The World Health Organization says depression and anxiety cost the world over $1 trillion in lost productivity each year. In the U.S., mental health is one of the top reasons employees go on disability.

Ignoring mental health can lead to:

  • More workplace accidents
  • More short- and long-term disability claims
  • Higher employee turnover
  • Lower job performance
  • Increased health insurance costs

For businesses and employers, these are all red flags. But the good news is that many of these problems can be mitigated or prevented. 

How Employers Can Support Mental Health

You don’t need a big budget or fancy programs to make a difference. Here are five simple steps every employer can take:

  1. Make it okay to talk about it. Let your team know that it’s okay to talk about mental health. Train and encourage managers to check in with their teams and recognize signs of stress. When leaders speak openly about well-being, employees feel safer asking for help.
  2. Be flexible when you can. Giving employees more control over their schedules can reduce stress. Letting people work from home, adjusting start and end times, or offering extra time off when needed can make a big difference.
  3. Offer help and resources. Make sure your team knows where to turn if they need support. This might include an Employee Assistance Program (EAP), mental health coverage through your insurance plan, or sharing local counseling options. Even something simple like a list of hotlines or online tools can be helpful.
  4. Keep an eye on workload. If your team is constantly overworked and overwhelmed, burnout is likely. Encourage breaks, set realistic deadlines, and ensure employees aren’t regularly working long hours. A well-rested employee is more focused and less likely to get hurt or make mistakes.
  5. Encourage social connection. Feeling isolated at work can harm mental health. Planning team check-ins, creating buddy systems, hosting in-person social events, or just walking around the block with co-workers and managers can go a long way. Feeling connected helps employees feel supported and engaged.

ICW Group has a comprehensive library of free resources that are available to our policyholders. Our on-demand webinar Employee Mental Health: Strategies for a Resilient Workplace offers resources and strategies to help your organization proactively address and manage mental health in the workplace. We also have some excellent resources on our Safety OnDemand learning management platform. Log in to Safety OnDemand (free registration is required), and type in the keywords “managing stress” for a list of streaming safety videos, eLearning courses, and safety meeting topics. 

A Safer, Healthier Future

When businesses and organizations prioritize mental health, everyone wins. Employees feel better, productivity increases and insurance risks decrease.

For business owners, protecting mental health is one of the smartest and most caring things you can do. At the end of the day, your employees are your most valuable asset. When you protect their mental health, you protect your business.