More than nine in 10 HR and benefits leaders say employee mental health is essential to business performance, while 84% recognise that access to care alone is no longer enough. New research from Lyra Health highlights growing concerns about burnout, AI-related pressures and increasingly complex mental health needs.
Employee mental health has become a critical business priority, with 92% of HR and benefits leaders saying it is essential to sustaining organisational performance, according to new research from Lyra Health. The findings reveal that 83% believe mental health has become more important to business performance over the past three years, while 87% say demonstrating measurable financial returns from mental health investment is a top priority for finance teams.
As employers prepare for 2027, the importance of workforce wellbeing is increasingly being measured through productivity, employee engagement and financial outcomes rather than the availability of benefits alone. However, the research also reveals significant challenges. Some 84% of benefits leaders recognise that simply expanding access to mental health care is no longer enough, while 82% expect their organisations’ mental health budgets to increase.
The findings are published in Lyra Health’s 2027 Workforce Mental Health Trends Forecast, based on its seventh annual survey of more than 500 HR and benefits leaders from multinational organisations. The report identifies mounting pressures from increasingly complex mental health needs, artificial intelligence, employee burnout, neurodiversity, family responsibilities and the expanding role of managers.
Together, the findings suggest that employers increasingly recognise the business value of mental health support but face difficult questions about whether existing strategies are delivering meaningful outcomes for employees.
GOOD EMPLOYEE MENTAL HEALTH KEY TO BUSINESS PERFORMANCE
The growing emphasis on employee mental health reflects a shift in how businesses assess workforce wellbeing. Rather than viewing mental health solely as an employee benefit or corporate responsibility, organisations are increasingly examining its relationship with productivity, workforce resilience, retention and long-term performance. Lyra’s research found that 92% of benefits leaders consider employee mental health essential to sustaining business performance, while 83% believe this relationship has strengthened over the past three years. The company’s additional findings also reveal that:
- 81% report higher employee productivity associated with mental health support.
- 72% report higher employee engagement.
- 73% report positive financial returns from their mental health investment.
- 87% say measurable financial returns are a top priority for finance teams.
MENTAL HEALTH BENEFITS MATTER
Productivity has become the leading measure of the impact of mental health benefits, with Lyra reporting a 40% year-on-year increase in its use as a measure. The findings suggest that businesses are moving beyond traditional measures such as benefit utilisation and employee participation towards assessing whether mental health programmes contribute to meaningful workforce and organisational outcomes. However, the figures reflect benefits leaders’ reported experiences and assessments rather than independent proof that mental health support directly caused improvements in productivity or financial performance.
Jennifer Schulz, CEO of Lyra Health, emphasised the importance of helping employees adapt as workplaces undergo significant technological and organisational change. “As the pace of innovation increases, resilience and capacity become some of the most important things an organisation can help their employees build,” said Schulz. “When people can access the right care at the right level, they can find their footing, adapt to what comes next, and do their best work.”
Recent research revealed that poor mental health among UK workers has increased by 66% since 2009, affecting around 7.2 million employees. That research, from the Mental Health Foundation, also found that 5.6 million workers say their jobs cause stress or unhappiness most or all of the time. The findings highlight why workforce mental health is increasingly relevant to productivity, workforce participation, employee retention and wider economic performance.
ACCESS TO MENTAL HEALTH SUPPORT ALONE IS NOT ENOUGH
Despite growing investment, Lyra’s research suggests employers increasingly recognise that the availability of mental health services does not necessarily mean employees receive the care they need. Some 84% of benefits leaders acknowledge that expanding access to mental health support alone is insufficient.
The findings point towards greater emphasis on care quality, appropriate treatment, measurable outcomes and whether employees can access help suited to their particular circumstances. This is especially important as mental health needs become more complex. Nearly half of benefits leaders identified the increasing complexity of mental health needs as the leading pressure facing employers heading into 2027.
The report also identifies support for serious mental health conditions, including substance use disorders and suicide risk, as a leading opportunity for improvement over the next three years. The findings raise questions about whether traditional workplace wellbeing programmes and Employee Assistance Programmes are sufficiently equipped to address the full range of employee needs. They also reinforce concerns about the difference between providing services and ensuring employees feel able to use them.
Recent research found that 91% of UK employees have access to workplace mental health support, yet only 37% would use it if they needed help. The study, commissioned by Kara Connect, found that 32% worried seeking support could damage their careers or job security, while others expressed concerns about confidentiality, embarrassment or whether their problems were serious enough to justify help.
Together, these separate studies highlight a significant challenge for employers. Mental health support cannot be judged solely by whether an organisation offers it. Businesses also need to consider whether employees trust the services, understand how to access them and receive appropriate professional care when required.
BURNOUT AND RISING EXPECTATIONS THREATEN WELLBEING
The Lyra findings also reveal growing concern about the pressures employees face in their everyday working lives. More than half of benefits leaders (53%) identify burnout as a leading workforce concern. Meanwhile, 50% say higher performance expectations combined with fewer resources are negatively affecting employee mental health.
The findings highlight the importance of examining the conditions under which employees work rather than relying exclusively on individual wellbeing interventions. High workloads, insufficient staffing, constant organisational change and unrealistic performance expectations can all contribute to stress and exhaustion.
Separate research revealed that nearly seven in 10 US employees in computer-based roles experienced burnout during the previous year. The Hubstaff study found that 55% had told their managers they were fine when they actually felt overwhelmed. Among employees whose managers or employers knew they were experiencing burnout, 64% said nothing changed. These findings raise questions about whether employers are responding effectively to warning signs or expecting employees to manage increasingly demanding workloads through personal resilience alone.
Fair Play Talks’ World Mental Health Day 2026 coverage explored the wider challenges for businesses, including the gap between organisational wellbeing commitments and employees’ everyday experiences. For businesses, the implications are clear: mental health strategies need to address both access to appropriate support and the working conditions that may contribute to poor wellbeing.
AI AND TECH CREATING NEW MENTAL HEALTH PRESSURES
Artificial intelligence is emerging as another significant workplace wellbeing challenge. According to Lyra, 48% of benefits leaders identify AI and rapid technological change among the workplace factors having the most negative impact on employee mental health. The research suggests employees are navigating uncertainty about job security, changing skill requirements, professional relevance and the pace of technological transformation.
However, AI-related pressures are not limited to concerns about jobs disappearing. They can also involve the need to learn unfamiliar systems, adapt to new expectations, manage increasing workloads and maintain confidence in an environment where technology is changing rapidly. Lyra’s expanded research also highlights concerns about human connection, cognitive overload and the pressure to continually adapt. These findings reinforce previous research showing that nearly half of workers using AI face higher workload expectations, despite the technology helping them complete certain tasks more quickly.
That study found that 46% of AI users reported increased workload expectations, while 45% spent at least an hour each week correcting colleagues’ AI-generated work. The findings raise questions about whether productivity improvements are translating into healthier working conditions or simply increasing expectations of what employees should achieve. The importance of managing AI-related workplace change responsibly has also been explored in Fair Play Talks’ coverage of employee trust and AI accountability. Behavioural scientist Dr Gleb Tsipursky argued that employees need visible safeguards, transparent decision-making and clear human oversight to build confidence in increasingly autonomous AI systems.
For employers, the latest Lyra findings suggest that AI transformation should be treated as both a technological and a people-management challenge. That means communicating clearly about changing roles, providing realistic training opportunities, reviewing workloads and ensuring employees feel supported through organisational change.
THE NEURODIVERSITY SUPPORT GAP
Neurodiversity is another area where growing employer investment is not necessarily matched by confidence in delivering effective support. Lyra found that 79% of benefits leaders are investing in tailored support for neurodivergent employees and dependants, yet 67% remain unsure how best to meet their needs.
The findings reveal an important gap between organisational intentions and practical knowledge. Neurodivergent employees may require different forms of support depending on their individual circumstances, working environments and preferences. Needs may involve accessible communication, flexibility, sensory considerations, workplace adjustments, management practices or access to appropriately informed healthcare professionals.
Neurodivergence itself should not be treated as a mental illness, although neurodivergent people may also experience mental health conditions and encounter barriers to suitable care. The importance of these distinctions has been highlighted in previous reports revealing that neurodivergent workers continue to experience poorer workplace wellbeing, psychological safety and work-life balance despite growing inclusion efforts. The 2026 research from Birkbeck, University of London and Neurodiversity in Business found persistent challenges involving burnout, workplace adjustments and inflexible working arrangements.
It also highlighted the importance of training managers and designing workplace systems that accommodate different ways of thinking, communicating and working. Together, the findings suggest that employers need to move beyond awareness and investment alone towards practical, individualised support and more inclusive workplace design.
WORKING FAMILIES NEED MORE MENTAL HEALTH SUPPORT
The Lyra report also identifies significant challenges in supporting employees’ families, particularly children and young people experiencing mental health difficulties. Half of benefits leaders say children’s mental health is among the needs their organisations are least prepared to address. Finding the right type or level of care for a child’s needs was identified as the leading challenge in supporting working parents. The findings highlight the complex pressures facing employees who must balance professional responsibilities with supporting children or other family members experiencing mental health difficulties.
These responsibilities can involve arranging appointments, navigating healthcare systems, coordinating treatment and managing unexpected changes in a family member’s condition. For employers, the consequences may extend into concentration, attendance, working hours and employee wellbeing.
The wider impact of family responsibilities was highlighted in recent reporting on the hidden mental load of childcare. Research from Bright Horizons found that many working parents were navigating shrinking childcare support networks, increasing the pressure associated with coordinating care.
Although childcare arrangements and children’s mental health needs are different issues, both demonstrate why workplace wellbeing strategies increasingly need to consider family circumstances. For employers, this may involve expanding access to family mental health resources, improving flexibility and helping employees navigate appropriate care without compromising their own wellbeing or careers.
MANAGERS FACE GROWING PRESSURE AS AI TRANSFORMS WORK
Another major finding concerns the changing role of managers. According to Lyra, 89% of benefits leaders believe managers will become more important as AI changes how work is organised. At the same time, 79% expect managers to lead larger teams, while 85% believe managers would benefit from additional support.
The findings suggest that AI may reduce certain administrative responsibilities while increasing the importance of distinctly human leadership skills. Managers will increasingly need to help employees navigate change, maintain confidence, develop new capabilities and manage workplace relationships. They may also face greater expectations to recognise mental health difficulties and support colleagues experiencing stress, uncertainty or burnout. However, these responsibilities can create additional pressures for managers themselves. Lyra argues that organisations need to ensure managers receive appropriate coaching, training and support rather than assuming they can absorb expanding responsibilities indefinitely.
This reinforces the message in Fair Play Talks’ Mental Health Awareness Week feature, which examined why manager training is critical to improving workplace mental health. The article highlighted the importance of equipping managers with practical skills, confidence and appropriate organisational backing to support employees experiencing difficulties. For businesses, the challenge is to create management structures that allow leaders to support their teams without placing unreasonable demands on their own wellbeing.
WHY MENTAL HEALTH INVESTMENT MUST DELIVER MEASURABLE RESULTS
With 82% of benefits leaders expecting mental health budgets to increase, the pressure to demonstrate value is likely to intensify. Lyra found that productivity is now the leading measure used to assess the impact of workplace mental health benefits. Meanwhile, 87% say measurable financial returns are a top priority for finance teams. This increasing focus on outcomes reflects the importance businesses place on understanding whether investment is improving employee wellbeing and contributing to organisational performance.
However, measuring the effectiveness of mental health support requires more than calculating short-term financial returns. Employers also need to consider whether people can access appropriate care, whether treatment helps them recover and whether working conditions support sustainable wellbeing.
Relevant measures may include employee engagement, absence, retention, recovery outcomes, service accessibility, confidentiality and employees’ experiences of workplace support. Organisations also need to recognise that mental health conditions can be complex and that meaningful improvements may take time.
A financially focused approach should not create pressure for employees to disclose sensitive medical information or suggest that their wellbeing matters only when it produces measurable business benefits. The challenge is to understand both the human and organisational outcomes of mental health investment.
WHAT EMPLOYERS SHOULD DO NEXT
The findings highlight the need for organisations to move beyond expanding benefits towards comprehensive approaches that connect employee wellbeing with responsible leadership and sustainable business performance.
1. Measure outcomes rather than availability alone
Employers should assess whether mental health support is accessible, appropriate and effective, rather than relying exclusively on how many services are offered or how frequently employees use them.
2. Address the causes of workplace stress
Excessive workloads, unrealistic performance expectations, poor management, bullying and organisational uncertainty should be treated as potential workplace risks rather than problems employees must manage through resilience alone.
3. Improve access to specialist mental health care
Businesses should examine whether benefits provide appropriate pathways for employees with different levels of mental health need, including access to qualified professionals and specialist services where necessary.
4. Support employees through AI transformation
Clear communication, realistic training expectations, manageable workloads and opportunities for employee involvement can help reduce uncertainty as organisations introduce new technologies.
5. Strengthen neuroinclusion
Employers should provide individualised support, accessible workplace adjustments and appropriate manager training, while recognising that neurodivergent employees do not all have the same needs.
6. Expand family wellbeing support
Mental health strategies should consider working parents, carers and employees supporting family members experiencing emotional or psychological difficulties.
7. Give managers the resources they need
Managers require training, time, authority and access to professional support so they can respond appropriately to employee difficulties without being expected to act as mental health clinicians.
8. Build psychologically safe workplace cultures
Employees should feel confident discussing challenges, requesting support and raising concerns without fearing stigma, discrimination or damage to their careers.
9. Evaluate both human and business outcomes
Employers should measure the impact of mental health investment using clinical, workforce and financial indicators, while protecting employee privacy and dignity.
MENTAL HEALTH IS A BUSINESS PRIORITY, BUT INVESTMENT ALONE IS NOT ENOUGH
Lyra’s findings demonstrate how firmly employee mental health has become embedded in business discussions. With 92% of benefits leaders recognising its importance to organisational performance, and 83% believing that importance has increased over the past three years, the connection between workforce wellbeing and business sustainability is receiving growing attention.
However, the research also reveals a significant gap between recognising mental health as a priority and delivering effective support. Employers are navigating more complex mental health needs, increasing pressure on managers, AI-related uncertainty and growing demand for family and neurodiversity support. At the same time, businesses are expecting greater evidence that their investments are improving productivity, engagement and organisational performance.
The challenge for 2027 is therefore not simply deciding how much to spend on mental health benefits. It is ensuring that employees can access appropriate care, managers have the resources they need and workplace conditions do not undermine the wellbeing organisations are trying to support.
Ultimately, the business case for mental health goes beyond performance. Employers must take action to reduce workplace pressures, provide effective mental health support and create environments where employees feel valued, supported and able to thrive throughout their careers.
Download the full 2027 Workforce Mental Health Trends report here.
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