Mental health awareness at the workplace came to the forefront during the pandemic, and the demand by employees for health benefits has only continued to grow, according to recent research and actions by benefit providers.

On Tuesday, benefits provider Voya Financial Inc. announced enhancements to its mental health benefits offerings for those diagnosed with mental or neurodevelopmental issues, as well as for those who have suffered an accident that has impacted their mental well-being.

The week prior, corporate well-being provider Grokker announced a new, on-demand mental health course for employees that has been taken on by the likes of Delta Air Lines. Meanwhile, earlier this summer, MetLife Inc. paired with Lyra Health on a program to provide employees with access to mental health services when they file a disabilty or absence claim.

The proliferation of mental health benefits is, according to providers, being driven by demand for wellness options that go beyond financial or saving benefits, whether for specific groups in need—in the case of Voya and Metlife—or the general populace, such as with Grokker. Whichever the case, recent research backs up the employer call for such benefits: Mental health needs in the workforce have risen in 2023, with 77% of large employers reporting an increase in employee demand, a 33-percentage-point surge over 2022, according to a survey released last week by the Business Group on Health, a membership organization representing large employers.

“Our survey found that in 2024 and for the near future, employers will be acutely focused on addressing employees’ mental health needs while ensuring access and lowering cost barriers,” Ellen Kelsay, president and CEO of Business Group on Health, said in a statement accompanying the report. “Companies will need to creatively and deftly navigate these and other challenges in the coming year, especially as they remain committed to providing high-quality health and well-being offerings while managing overall costs.” 

The Business Group on Health report, which surveyed 152 employers representing some 19 million employees in June and July, found that the increase in mental health challenges has employers looking to offer mental health services with

increased options and lower costs for care.

Where There’s a Need

Lorna Borenstein, CEO and founder of Grokker, says she started hearing about the increased need for mental health benefits to supplement financial wellness needs shortly after the pandemic, particularly for workforces that had experienced widespread layoffs and then re-hirings, such as hospitality and tourism. Firms such as Delta and the Mandarin Oriental Hotel Group found their workers calling for accessible, cost-effective and efficient mental health options.

“The pandemic didn’t create the situation,” Borenstein says. “It made it so employers couldn’t ignore it.”

Borenstein, who came to benefits from a technology background, says the pandemic showed employers that when a worker is not doing well mentally, they do not show up as their best selves and, ultimately, may not stay with the company as long—an issue for industries with high turnover rates.

“Employers were saying, ‘We need to think about these issues because we want to keep our people with us,’” she says. “They wanted to show their employees they care about them and want them to be taken care of, not just financially, but mentally.”

Serving the demand, however, is easier said than done. Borenstein says she started hearing from clients about the need for new offerings because they were finding “there aren’t enough clinicians on earth to satisfy the mental health needs of our population,” according to the CEO.

“Not everyone wants to go to see a psychologist or psychiatrist anyway,” Borenstein points out. “We needed to bridge the gap between traditional thinking about helping people with mental health and the way we operate today. … We needed to make it accessible, as well as affordable.”

On-Demand Mental Health

On August 17, the San Jose, California-based company announced a new 30-day, workplace-provided mental health program for employees. The digital offering, which includes video elements, leverages licensed clinical psychologists focused on cognitive behavioral therapy, according to Borenstein. The program combines live sessions with a “three-steps-a-day” program intended to give employees a robust, yet on-demand mental health benefit.

“It’s a whole new way of thinking about mental health care and prevention,” according to Borenstein. “If people want to do more after the program, they can. But this helps people get started right away without the hurdle of setting up appointments or just that scary first step of starting therapy.”

Benefits providers and advisers may want to pay attention to the mental health trend, according to the Business Health Group findings. The need for better mental care may also be driving business changes, according to the research, as more than 50% of employers plan to assess healthcare partnerships and vendors for their value and cost-effectiveness.

Voya’s new mental health insurance enhancements, announced last week, “have become increasingly popular components of employers’ benefits packages,” according to the insurance, retirement and financial wellness provider. Voya’s program adds benefits for mental health disorders and increased flexibility available with critical illness insurance.

“By helping employers provide meaningful workplace benefits solutions, we are responding to the growing expectations from employees that their employer support more than just their medical and dental insurance needs,” Nate Black, vice president of health solutions product development at Voya, said in a statement. “Specifically, our research has found 55% of employed Americans strongly or somewhat agree that their employer has a responsibility in ensuring they are both mentally healthy and emotionally well.”

The expanded offerings include coverage for mental illness and/or neurodevelopment disorders (such as Attention-deficit/hyperactivity disorder and Autism spectrum disorder), Voya wrote. The company also enhanced accident insurance to cover psychological or psychiatric care prescribed by a doctor and provided in an office, hospital or other eligible facility on an inpatient or outpatient basis after a covered accident, the firm announced.