How to Offer Mental Health Days at Work (An HR Guide)

When was the last time you took a day off just for your mental health? In today’s fast-paced work environment, mental health days are more important than ever. These dedicated days allow employees to hit the reset button, recharge, and manage stress or burnout before it becomes overwhelming. 

And, boy, do employees need this: nearly 30% of employees report high stress levels at work, according to a recent Mercer study. 

But guess what? Only 15% of organizations actually offer company-wide mental health days. That’s a huge disconnect—and it’s driving burnout and frustration. That can have a major impact on how well your organization performs. 

If mental health days aren’t already part of your benefits lineup, it may be time to change. Ready to create a healthier, happier workplace? Let’s explore how mental health days can help your employees thrive and boost your bottom line — and how to launch a supportive mental health day policy at your workplace. 

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What Are Mental Health Days?

Mental health days are days taken off from work to focus on one's mental and emotional wellbeing. They allow individuals to take a break from their usual responsibilities to rest, de-stress, and manage anxiety or burnout. 

These days are used for self-care, therapy, or simply to reset. They function much like a sick day for physical health — they are often paid, and the need for a mental health day may arise suddenly, so managers may not have advance warning for when an employee is going to take time off.

Many employers (and schools), however, are beginning to recognize the value of mental health days outweighs such inconveniences, especially as part of a broader approach to wellness and preventing burnout.

The Business Case for Mental Health Days

While there are clear benefits for employees who use mental health days at work, you may be surprised to learn that employers can benefit from offering mental health days, too! And they aren’t marginal — mental health days can strengthen critical business metrics. 

1.  Productivity Boosts

Mental health issues such as anxiety and depression significantly affect employee productivity. Employees experiencing these conditions miss an average of nearly 5 days of work every three months, leading to substantial losses in productivity. In fact, mental health problems contribute to an estimated $15,000 in costs per employee annually due to lost productivity, healthcare expenses, and turnover.

2. Reduced Absenteeism and Presenteeism

Mental health days can mitigate the costs associated with absenteeism (employees not showing up for work) and presenteeism (employees being present but not functioning effectively). The combined costs of these issues can reach trillions annually for companies. By allowing employees to take mental health days, organizations can reduce the likelihood of burnout and the associated health issues that lead to longer absences.

3. Enhanced Employee Retention

A supportive work environment that includes mental health days can improve employee satisfaction and retention. Research indicates that up to half of full-time workers have left a job due to mental health reasons. By addressing mental health proactively, companies can foster a loyal workforce and reduce turnover costs.

4. Strengthening Company Culture

Implementing mental health days contributes to a positive company culture and morale. When organizations openly support mental health, they help destigmatize mental health issues, encouraging employees to prioritize their well-being without fear of judgment. This openness can lead to a more engaged and motivated workforce.

5. Financial Returns on Investment

Investing in mental health initiatives yields significant returns. For every dollar spent on mental health support, employers can expect a return of approximately $4 in improved productivity and reduced absenteeism, according to research conducted by the World Economic Forum. This financial incentive makes a compelling argument for integrating mental health days into employee benefits.

6. Meeting Employee Expectations

A significant majority of employees believe that their employers should do more to support mental health. In fact, 76% of workers expect their companies to increase mental wellness initiatives, according to anOracle Workplace Intelligence report. By offering mental health days, employers align their practices with employee expectations, enhancing their reputation as a desirable place to work.

How to Create a Supportive Mental Health Day Policy (Step by Step)

If you think offering mental health days might be the right approach for your company, establishing a formal policy can help everyone be on the same page about how this works. Here are some steps you can take to get started.

Step 1. Evaluate the Current Work Environment

Do you see signs that employees might benefit from mental health days? A few red flags to look for include reduced employee engagement, falling productivity, and increased turnover. 

While some signs may be visible to you, it might be a good idea to gauge the state of employee wellness at your workplace through an anonymous survey. That way, you'll have hard data to back your case for mental health care days with company executives and directors. A survey can also alert you to other potential solutions, like offering employee assistance programs (EAPs) or support groups.

Step 2. Define Your Mental Health Day Policy

There are a few ways you can implement mental health days. Some companies provide a set number of floating days employees can freely take each year. Free-floating days are similar to sick days. If you decide on this method, consider how employees can request mental health days. Will you require a few days' notice before the employee takes a mental health day, or will you allow them to take it when they like?

Another approach involves scheduling set mental health days for all employees on specific days. On scheduled mental health days, no employees work, and everyone takes the time to fully unplug, with no requirement to check emails or handle other work-related responsibilities.

You may find another method that suits your company's goals better. Whatever way you decide to incorporate mental health days, take care to outline the policy thoroughly so all employees understand it.

Step 3. Get Management and Legal Approval

Once you settle on a mental health day policy, approach your management team and request a review. You might also consult with your organization's legal team to ensure the policy aligns with employment regulations.

Step 4. Share the Mental Health Day Policy With Employees

Notifying employees of changes to your leave and benefits package is good practice. Consider holding a company-wide meeting to explain the new mental health day policy, including why you're offering it and its expected advantages. You may also explain the basics of taking mental health days and some ideas for using them. If possible, allow employees to ask questions during the meeting. 

After the meeting, consider sharing a one-pager or updated employee handbook containing the mental health day policy. That way, everyone can refer to it when needed.

Step 5. Train Management Teams

Managers and supervisors interact directly with staff daily, so they may be the first to spot the signs that a worker needs a mental health day. Consider offering training to managers so they understand how to support employees through the mental health day policy and other benefit options. 

Step 6. Monitor Results

Seeing results from your new mental health day policy may take some time. Consider setting a few benchmarks with the help of an employment engagement survey. You might compare metrics for employee engagement, job satisfaction, and employee-related stress at different periods, such as before initiating the policy and one year afterward. 

Tips for Creating a Corporate Culture That Supports Mental Wellbeing 

Besides a mental health day policy, what are a few other ways you can foster employee mental wellbeing? Here are a few options.

Train Managers to Recognize Employee Burnout

Managers and supervisors may be able to prevent employee burnout if they understand how to recognize its symptoms. A few signs that may be noticeable include declining work performance, abnormal irritability, and a disinterest in work projects or learning new things, according to Forbes. 

You might empower managers to provide employees with a discretionary mental health day on a Monday or a Friday so the worker has a three-day weekend to rejuvenate and hopefully return to work feeling better. 

Consider Flexible Scheduling

Sometimes, a worker's stress is related to non-work problems, like a long commute or childcare responsibilities. If that's the case, consider allowing employees to set flexible schedules that better accommodate their needs. For instance, you might allow workers to start their day earlier or later to avoid rush hour traffic.

Another option is a hybrid work arrangement that allows employees to work from home on designated days and come into the office on others. However, hybrid work schedules may not be the right fit for every organization or position.

Incorporate Mental Health as Part of a Wellness Initiative

Mental health is just as important as physical, emotional, and financial health. If you think your employees could benefit from an overall wellness program, consider incorporating mental health days as part of a comprehensive initiative. 

You can promote health-oriented activities like after-work fitness classes or an optional nutrition program. Some companies offer wellness benefits, such as gym memberships or mental health counselor access. 

Supporting Employee Mental Health with Wellbeing Programs

Employees today face a range of mental health challenges, including burnout and anxiety, yet many companies still lack comprehensive support. Without the right resources, employees struggle to manage their stress, leading to higher turnover and absenteeism.

Wellbeing programs that include mental health support — such as mental health days, therapy apps, or meditation classes — can make a huge impact. Wellhub, for example, includes yoga studio memberships, as well as meditation and anxiety apps — and helps companies save up to 35% on healthcare costs while reducing turnover by up to 40%. 

Investing in mental and emotional wellbeing leads to a happier, more engaged workforce. Speak with a Wellhub Wellbeing Specialist to start building a culture of wellbeing that supports everyone!

References:

• 2023 Work in America Survey. (n.d.). In https://www.apa.org. Retrieved on June 18, 2024, from https://www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being
• The business case for workplace Mental health. (n.d.). https://www.healthaction.org/updates/05-03-22-digest
• Four critical steps you need to take to promote employee wellness and maximize engagement. (n.d.). Retrieved on June 18, 2024, from https://www.brightplan.com/webinar/four-critical-steps-you-need-to-take-to-promote-employee-wellness-and-maximize-engagement
• Montanez, R. (2019, June 6). Burnout is sabotaging employee retention: Three things You Must know to help. Forbes. Retrieved on June 18, 2024, from https://www.forbes.com/sites/rachelmontanez/2019/06/05/burnout-is-sabotaging-employee-retention-three-things-you-must-know-to-help/?sh=2ae1b515f0ed
• The Nonpartisan and Objective Research Organization at the University of Chicago. (n.d.). National Safety Council and NORC at the University of Chicago Announce New Mental Health Cost Calculator to Demonstrate Why Investing in Mental Health is Good for Business | NORC at the University of Chicago. The Nonpartisan and Objective Research Organization NORC at the University of Chicago. https://www.norc.org/research/library/national-safety-council-and-norc-at-the-university-of-chicago-an.html
• Kaplan, Z., & Kaplan, Z. (2023, July 11). How many work hours are in a year? Forage. https://www.theforage.com/blog/basics/how-many-work-hours-year
• Oracle. (2020). AI@Work Study 202. Retrieved August 23, 2024, from https://www.oracle.com/a/ocom/docs/oracle-hcm-ai-at-work.pdf
• Penev, T., Zhao, S., Lee, J. L., Chen, C. E., Metcalfe, L., & Ozminkowski, R. J. (2023). The Impact of a Workforce Mental Health Program on Employer Medical Plan Spend: An Application of Cost Efficiency Measurement for Mental Health Care. Population health management, 26(1), 60–71. https://doi.org/10.1089/pop.2022.0240
• Sokoler, S. (2024, August 13). The business case for mental health: Investing in Employee Well-Being. Forbes. https://www.forbes.com/councils/forbesbusinesscouncil/2024/07/30/the-business-case-for-mental-health-investing-in-employee-well-being/
• Thier, J. (2023, December 14). Prioritizing wellness at work could relieve America of its $1.5 trillion presenteeism problem in which employees are just pretending to work, 100-page report finds. Fortune. https://fortune.com/2023/12/14/worker-presenteeism-costs-us-economy-trillions-solution/
• Tyler, K. (2024, March 27). Aligning Employee Benefits with Worker Desires. SHRM. Retrieved on June 18, 2024, from http://shrm.org/hr-today/news/all-things-work/pages/what-employees-want.aspx. 

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Key Terms:

What is an Employee Leave of Absence?
There are two main leave of absence (LOA) categories: mandatory and voluntary. Mandatory leaves of absence are situations when the employee has a right to take leave, per federal standards. A voluntary leave of absence is an employee benefit or perk. Read More.

Flexible Time Off vs. Paid Time Off: What’s the Difference?
Flexible time off refers to plans that let employees take time off when for the reasons they choose, rather than having the days be allocated by sick days, vacation days, etc. Paid time off (PTO) is time a worker is compensated even though they are absent from work. Read More.

Unlimited PTO: What is it?
Unlimited PTO is a company policy that lets employees take as much paid time off as they want so long as they get their work done. This policy gives employees more control over their schedules than the traditional 9-5. Read More.

What is a Sabbatical?
A sabbatical is an extended paid break from work, typically six to 12 months in duration, granted to employees periodically throughout their career. During this time, employees are relieved of their regular job responsibilities. They take time to rest, recharge, and pursue personal or professional development opportunities. Read More.

What is a Floating Holiday?
A floating holiday is a type of paid time off that allows employees to choose when they take a day off within a certain timeframe, rather than being tied to fixed, predetermined holidays. Read More.