Treasury Talent

Corporates shift gears with mental health

Published: Nov 2023

Working remotely, changing expectations and greater awareness all mean that organisations are doing more to ensure the good mental health and wellbeing of their employees. However, stigmas remain and there is still plenty more that corporates could be doing.

Stones stacked into a tower on the beach at sunset

Good or bad, it’s something we all have – whether we are aware of it or not. Mental health is something many individuals are better at managing, and now organisations are paying more attention to what they can do for their employees.

Although there is still a stigma surrounding mental health, corporate attitudes are changing. Alistair Carmichael, Expert Associate Partner, People and Organizational Performance Practice and McKinsey Health Institute leader at McKinsey, comments there has been a real change in recent years. “The conversation today is different to what it was five years ago. Today, organisations increasingly recognise the importance of addressing mental health as a critical component of overall wellbeing, benefitting both employees, employers and society at large,” Carmichael tells Treasury Today Group.

Carmichael adds that the pandemic – and its accompanying growth in remote and hybrid working – has driven some of the change. He refers to research by the McKinsey Health Institute that found that in the UK, 27% of employees reported experiencing burnout symptoms in 2022. “Many employers responded by investing more into mental health and well-being than ever before. Across the globe, four in five HR [human resources] leaders report that mental health and well-being is a top priority for their organisation,” Carmichael says.

The pandemic accelerated a growing awareness of mental health, says Bernie Wong, Principal and Senior Manager of Insights, at Mind Share Partners, a non-profit in that US that is focused on workplace mental health.

At the same time there has also been a shift in attitude on the part of employees, who are now re-evaluating their priorities after the pandemic, which forced them to work differently. Wong comments on the other issues they face: “Workers are struggling with costs of living, income inequality, layoffs, forced returns to offices, and still a lack of autonomy, flexibility, and work-life balance,” all of which is driving a shift in their relationship to work.

What’s more, organisations are expected to be providing an environment that is conducive to good mental health and wellbeing – and the younger generation that is coming into the workforce expect it. Frank Ng, Vice President of Marketing for Intellect, an Asian mental healthcare company that provides access to coaching, therapy and a self-care app, comments that most 20-year-old to 40-year-olds expect a company’s employee value proposition to include mental health wellbeing and support, he says.

Mental health in Asia

Although the younger generation are putting a different emphasis on mental health, and making greater demands of their employers, there are some trends in Asia that make the handling of mental health different from other regions. Quintus Lim, Associate Director at the Milken Institute’s Asia Center and author of the ‘Framing the Issues: Digital Mental Health in Asia’ report, comments, “Stigmas and lack of awareness are very strong across Asia, including developed countries.” One issue is a generational divide between the younger generation and their elders who typically grew up poor. “Diligence is identity, whether or not one derives purpose and fulfilment. This can create a lack of sympathy towards the younger generations, exacerbated by superstitions and their own lack of education,” Lim explains. The upshot of the stigmas and lack of awareness is inadequacy, he says, with long waits for brief consultations.

The cost and speed of mental healthcare are problems that Ng and his colleagues at Intellect are solving. “If it is affordable it can take a long time to get an appointment with a psychotherapist. Or if an instant appointment is possible, it is extremely pricey,” he tells Treasury Today Group. Intellect tackles both of these problems at the same time, he comments. The platform can be incorporated into a corporate benefits scheme and opens up new standards of access, such as same week appointments with fully-vetted counsellors. “We want people to get help as fast as they need it – if you are in crisis you cannot wait,” Ng adds.

Solutions to Asia’s mental health problems are possible because of the technology that is now available. Ng argues that the nature of the problem has not changed – the need for mental healthcare was always there – even before the pandemic local institutions in Singapore, for example, were overwhelmed. “The problem has always existed, but the attitude from employers has changed – before they viewed this as something that the employee could deal with themselves. Now they’re more likely to think ‘I am providing physical health medical benefits, why not mental health?’,” Ng says.

A Big Brother solution?

With the shift to companies – rather than only individuals – taking action with mental health, it raises the question of whether corporations are going too far? Is this a bit too much like Big Brother, where an all-powerful entity watches and controls every move – and even every thought? Should mental health be the concern of companies and not just individuals? McKinsey’s Carmichael thinks it should be. “A mentally healthy workforce is more productive, creative and better engaged. When organisations prioritise mental health and leaders role model genuine care, productivity and performance are boosted,” he says.

Wong comments on the connection of work to mental health, and the role that employers have taken: “Historically, employers approached mental health as an individual health issue. ‘We’ll connect you to therapy, we’ll give you a meditation app, we’ll even throw in some days off to help you figure out your mental health issue’, without understanding the core foundations that underlie mental wellbeing – that is, work itself.” Wong at Mind Share Partners adds: “Work itself determines our mental wellbeing. So much of our lives are tied to work – our salaries, access to healthcare, how we schedule our days, our life education and life aspirations. Burnout itself is fundamentally rooted in poorly managed working conditions and work culture as defined by the World Health Organisation.”

When companies have attempted to address mental health issues with certain benefits or services, they often haven’t been used because of stigmas and discomfort about the prying eyes of their employers into their personal thoughts and feelings. Lim at Milken Institute comments that one of the issues in Asia is the low uptake of programmes that employers have traditionally offered. “Employees avoid employee assistance programs to avoid detection – the uptake was in the single digits,” he says.

On the Big Brother question, Ng comments that is linked to a dilemma that organisations have faced in the past. He explains that traditionally many organisations have had in-house psychologists to help their workforce, for example in hospitals, or the aviation industry. However, doctors or pilots may be unwilling to seek support during a work crisis when the professional is a fellow colleague – they may fear being recognised or their confidentiality being breached. For that reason, many companies now are keen to establish such services through a third-party provider, says Ng.

Action for corporates

Even when companies do put programmes in place, it can be difficult to get their employees to use them. This is in part due to the stigma surrounding mental health and the unease that managers have discussing it, and the reluctance of employees in bringing it to their attention. Also, some employees may not be aware that the services exist. There are many steps, however, that organisations can take to improve the mental health and wellbeing of their employees.

When it comes to improving access to services, Lim offers some recommendations to organisations. Lim comments that there are a number of things that large companies can do to improve the wellbeing and mental health of their employees. He says the ‘look and feel’ matters if wellbeing initiatives are being wielded as a competitive advantage. “Does the space feel safe to employees? Are they perceiving privacy and anonymity?” Lim asks. Also, he advises companies to “obey the spirit of the intervention”. He has more questions that organisations can ask themselves: “Are wellness sessions held on company time, or are employees made to wake up early/work overtime afterwards? Have effective steps already been taken to reduce overwork? Are employees convinced these efforts are sincere?”

Wong believes that a back-to-basics approach is necessary. “Therapy is table stakes. Perks are exactly that – simply perks. To truly shift our growing mental health crisis, we need core, human needs addressed, like liveable wages, protection from harm, and a voice for workers. We need safety and support around mental health. And we need healthy, sustainable cultures of work,” he says.

Also, it is important for employers to be focused on solving the right problem. “I’ve seen employers provide meditation booths for workers who don’t have the time to use the bathroom,” says Wong.

Wong argues that companies should prioritise two things, the first of which is a culture of safety: “The ability for someone to not only share and seek support should they experience a mental health challenge of any kind, and also show up as their genuine, authentic selves. That includes conversations around mental health stigma and around identity, equity, inclusion and belonging.” The second priority, says Wong, is a healthy and sustainable culture of work – which is where most companies fall short. “This means true work-life balance or integration. Autonomy, or the ability to self-determine, the where, when, and how of work, along with flexibility. And this also means recognition for the work you put in, fairness around work practices, healthy communication practices and more,” he says.

He also adds that employers need to stay the course on diversity, equity and inclusion. He points to studies conducted by Mind Share Partners that found that historically marginalised identities at work faced worse mental health outcomes, were more negatively impacted and less supported by their workplace, and, as a result, less engaged.

Ng at Intellect also points to the need for organisations to consider all types of workers when they offer mental health services and not marginalise their employees. Benefits should be available to everyone not just full-time employees or more senior white-collar workers. Part-timers, contract staff and others should all have equal access to the services, Ng says.

Where companies do offer services and programmes, Lim at Milken Institute says it is important for their effectiveness to be monitored and outcomes being measured. Carmichael at McKinsey also says it is important to improve how employee health is measured and says organisations should regularly engage employees and measure mental health to get a real-time snapshot of employee wellbeing.

Also, Carmichael says, “A one-size-fits-all approach doesn’t work. Organisations need to prioritise foundational levels of support and provide tailored assistance for individuals. For example, a simple but effective way of doing this is asking employees what support would help them.”

As well as this, there are plenty of opportunities for leaders to drive material change, Carmichael says, such as effectively addressing toxic behaviours. This involves “taking the courageous step to take an honest look at your workplace behaviour and cultivate supportive, psychologically safe work environments.”

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