Investing in Employees’ Mental Health Pays Off — With Stronger Evidence in 2025

Employers know mental health matters. New research now makes the financial case even clearer: mental well-being investments reduce costs and support healthier, more productive workplaces.

Returns Remain Strong

A recent cohort study of nearly 14,000 employees found that every $100 invested in an employer-sponsored behavioral health program was associated with $190 in reduced medical spending in the first year — nearly a 1.9x return on the investment when costs are factored in.

That aligns with broader evidence showing structured mental health support produces measurable value. Across 19 large employer studies, high-quality mental health benefits have consistently generated net savings on healthcare spending, reinforcing mental care as a viable cost-containment strategy.

Productivity Impacts are Real

Beyond direct healthcare savings, multiple analyses show that mental health problems have enormous productivity costs. Untreated mental illness costs U.S. employers tens of billions annually, largely through absenteeism and reduced performance.

That makes workplace mental health a business issue, not just a wellness perk.

What Employers Should Take Away:

• Higher utilization drives outcomes. Programs that improve access to timely care — including therapy, counseling, or digital behavioral health support — demonstrate stronger ROI than traditional, low-usage employee assistance programs.
• ROI comes from multiple vectors. Medical cost savings, productivity gains, reduced absence, and lower turnover all contribute. Peer-reviewed evidence suggests ROI can exceed 2:1 and, in some programs, surpass 5:1 when considering human capital savings alongside healthcare cost reductions.
• Mental health matters for talent. Employees increasingly prioritize mental health resources in benefit packages, and strong support can differentiate employers in competitive labor markets.

The Bottom Line

Investment in employee mental health remains one of the most financially justified components of modern workforce health strategies. Employers that offer high-touch, evidence-based behavioral health support are likely to see both measurable cost benefits and improvements in workforce engagement and performance.

WorkCare’s Wellness Solutions can help employers address performance and engagement in health initiatives. Contact us to learn more.

For additional background and historical data, read our original blog post.