Politics, religion, mental health… you probably avoid these topics at work. But while discussing the president or God can ignite disagreements and hurt company culture, not talking about mental health is even worse.

Why? Last year, 89% of global employees experienced at least one mental health challenge—but fewer than half received support, according to a Lyra Health survey. An employee’s mental health can have a major impact on their performance and morale, and leadership must respond.

Creating an environment that nurtures mental health starts with your leaders, but they may struggle with this sensitive subject. To provide top-tier mental health support, organizations need to first train these leaders to respond to employees’ mental health needs.

The State of Workplace Mental Health Support

Mental health among employees is worsening for the first time since 2021, according to Lyra Health. For 28% of U.S. respondents, work-related stress was the top reason. Globally, stress was identified as a primary concern for 44% of respondents.

Other key statistics from that same report:

• 89% of global employees experienced at least one mental health challenge in the past year. 

• Fewer than half received support. 

Meanwhile, The National Alliance on Mental Illness (NAMI) found that 75% of Americans want more information and training about mental health and the resources available to them, like the advantages of employee assistance programs.

Yet, there’s a communication and access gap. Lyra Health reports that:

• 45% of benefits leaders say they offer mental health resources

• Only 29% of employees know they exist.

And according to NAMI,

• 53% of employees know how to access those resources at work.

• Just 20% received training related to symptoms and conditions.

The bottom line: The gap between employee expectations and actual access to top-tier mental health support continues to widen, creating urgency for leadership action.

Why Mental Health Support Matters for High-Performing Teams

Mental health support is a strategic necessity, not a perk. Research shows that mental stress harms creativity and innovation. Productivity is lost as well, with around 12 billion workdays lost to depression and anxiety globally every year. 

Younger employees are especially aware of this connection: 

• 60% of Gen Z and 55% of Millennials would leave a job that lacks top-tier mental health support, according to Lyra Health. 

The snowball effect of poor mental health can be devastating: When an employee leaves for a company with a stronger focus on mental wellness, the team must deal with the staffing shortage. When individuals stay but are unfocused, unproductive, or often absent due to poor mental health, their team is left in the lurch.  

Conversely, organizations with comprehensive mental health benefits see higher ROI, lower turnover, and consistently high-performing teams. 

Quick takeaway: When employees feel their best, they do their best work — and that energy spreads across every team and department. 

But all this said, building an organization that provides top-tier mental health support is a journey. It starts with developing a more welcoming culture. To do that, an organization first needs to develop welcoming leaders. One of the most effective ways to build those leaders is through coaching that strengthens empathy, awareness, and communication. 

3 Ways Leadership Coaching Contributes to Positive Mental Health

The World Health Organization recommends leadership training as a core workplace mental health strategy. Effective leadership training enables leaders to understand job stressors, build respectful cultures, and support employees who may be struggling. However, while training provides the foundation, leadership coaching transforms those lessons into real-world behaviors that strengthen connection and trust. 

1. Coaching Builds Compassionate Leadership 

Coaching fosters the mindsets and beliefs that connect managers with their teams. Leaders trained in transformational coaching learn empathy, emotional intelligence, and active listening — essential traits for delivering top-tier mental health support. 

2. Coaching Encourages Psychological Safety 

According to NAMI, while 81% of employees feel comfortable discussing mental health with peers at work, only 57% feel comfortable talking to their managers — and just 39% with HR. This is particularly troubling considering managers impact employees’ mental health more than their doctors or therapists, and roughly the same amount as their spouses, says a survey from UKG. Coaching teaches leaders to create environments of psychological safety where employees feel supported and heard, even on sensitive topics. 

3. Coaching Strengthens Communication and Policy 

Leadership coaching also helps organizations design policies that support balance, reduce burnout, and highlight the advantages of employee assistance programs. These programs offer short-term counseling and mental health referrals, boosting productivity, improving morale, and reducing absenteeism. 

Key insight: A well-coached leader becomes a multiplier for mental wellness, shaping stronger, more empathetic, high-performing teams. 

Leading the Cultural Shift Toward Better Mental Health 

Mental health is slowly becoming destigmatized at work, but there’s still a long way to go. While more employees value mental health than ever, many organizations still fall short of offering top-tier mental health support. 

This change starts with leadership. When leaders receive coaching that equips them to understand, discuss, and normalize mental health challenges, they can create cultures where employees thrive. That’s how meaningful change takes hold. 

Contact The Pacific Institute to learn how leadership and mindset coaching can empower your organization to create sustainable, psychologically safe workplaces.